中华人民共和国政府采购法（2014修正）PRC Government Procurement Law (Amended in 2014)
PRC Government Procurement Law (Amended in 2014)
Chapter 1 General Provisions
Article 1. This Law is formulated in order to standardize government procurement, to improve the efficiency of government procurement funds, to safeguard State and public interests, to protect the legal rights and interests of the parties involved in government procurement, and to promote the building of an honest and clean government.
Article 2 This Law is applicable to government procurement within the territory of the People's Republic of China.
For purposes of this Law, "Government Procurement" refers to the procurement of goods, projects and services that fall within the catalogue for centralized procurement formulated in accordance with law or that are above the procurement limits, which are procured with fiscal funds by State organs at various levels, institutions and public organizations.
The catalogue for centralized government procurement and the procurement limits shall be formulated in accordance with the limits of authority stipulated in this Law.
For purposes of this Law, "Procurement" refers to activities conducted by means of contract for the acquisition of goods, construction or services for consideration, including but not limited to purchase, lease, entrustment and employment.
For the purposes of this Law, the term "Goods" means all types and categories of articles including raw materials, fuel, equipment, and products etc.
For purposes of this Law, "Construction" means construction projects, including new construction, reconstruction, expansion, fitting up, demolition and repair and renovation of buildings and structures.
Services mentioned herein refer to the objects of government procurement other than goods and construction.
Article 3. Government procurement shall abide by the principles of transparency, fair competition, impartiality and good faith.
Article 4. The laws on invitation and submission of bids shall apply to government procurement of projects by invitation and submission of bids.
Article 5. No work unit or individual may, by any means, obstruct or restrict the free entry of suppliers into the government procurement market in its/his region or industry.
Article 6. Government procurement shall be carried out strictly in accordance with the approved budget.
Article 7 Government procurement shall combine centralized and decentralized procurement. The scope of centralized procurement shall be determined in accordance with the catalogue for centralized procurement published by the people's government at provincial level or above.
The catalogue for centralized procurement for government procurement items that come under the central budget shall be determined and published by the State Council; the catalogue for centralized procurement for government procurement items that come under the local budgets shall be determined and published by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government or their authorized organizations.
Items included in the catalogue for centralized government procurement shall be procured in a centralized way.
Article 8 The thresholds for government procurement items that come under the central budget shall be prescribed and published by the State Council; the thresholds for items that come under local budgets shall be prescribed and published by the people's governments of provinces, autonomous regions or municipalities directly under the Central Government or the departments authorized by them.
Article 9 Government procurement shall be conducted in such a manner as to help achieve the goals set by State policies for economic and social development, including but not limited to environmental protection, assistance to underdeveloped or ethnic minority areas, and promotion of the development of small and medium-sized enterprises.
Article 10 The government shall procure domestic goods, construction and services. Other than in the following circumstances:
1. the goods, engineering or services to be procured are not available or cannot be obtained under reasonable commercial conditions within the territory of China;
(II) procurements for use outside the territory of China;
(III) other circumstances separately provided for in laws and administrative regulations.
Domestic goods, projects and services mentioned in the preceding paragraph shall be defined in accordance with the relevant regulations of the State Council.
Article 11 Information on government procurement shall be timely announced to the public through the media as designated by the department for supervision over government procurement, except information involving commercial secrets.
Article 12 If, in the activity of government procurement, the procuring person or person concerned has an interest with the supplier, he must withdraw. If a supplier considers that a procurement personnel or related personnel has an interest relationship with other suppliers, it may apply for his withdrawal.
For the purposes of the preceding paragraph, the term "relevant personnel" includes members of bid evaluation committees for procurement by invitation and submission of bids, members of negotiation groups for procurement by competitive negotiation, and members of quotation request groups for procurement by requests for quotations.
Article 13. The finance department of the People's Government at all levels shall be responsible for supervision and administration of government procurement and shall perform the duties of supervision and administration of government procurement activities in accordance with the law.
Other relevant departments of the people's governments at various levels shall, in accordance with law, perform their supervisory and administrative functions in connection with government procurement activities.
Chapter 2 Parties in Government Procurement
Article 14 The term "parties involved in government procurement" means all types of entities that have rights and obligations in government procurement activities, including buyers, suppliers and procurement agencies, etc.
Article 15 The procuring entities refer to the government departments, institutions and public organizations that engage in government procurement in accordance with law.
Article 16 The institution for centralized procurement is the procurement agency. People's governments at the level of cities divided into districts and of autonomous prefectures or above that make arrangements for centralized procurement on the basis of the items to be procured by the governments shall set up institutions for centralized procurement.
Centralized procurement institutions shall be non-profit business corporations and shall carry out procurement as entrusted by the procuring entities.
Article 17 When centralized procurement institutions conduct government procurement activities, they shall meet the requirements that the procurement price be lower than the average market price, the procurement efficiency be higher, the quality of procurement be fine and the services be good.
Article 18 When procuring items for the government that are included in the catalogue for centralized procurement, the procuring entities shall entrust the matter to institutions for centralized procurement; they may do it themselves where the items to be procured are not included in the said catalogue, or they may entrust the matter to institutions for centralized procurement that shall do it on their behalf within the scope entrusted.
Where items included in the catalogue for centralized procurement are those to be procured by the government for general use, a centralized procurement agency should be entrusted to do the job; if, however, they are to be used by any department or by the system it belongs to for special purposes, they should be procured by the department in a centralized way; if they are to be used by any department for special purposes, the department may procure them on its own with the approval of the people's government at the provincial level or above.
Article 19 Procuring entities may entrust procuring agencies other than centralized procurement agencies to handle the matters of government procurement within the scope entrusted.
Procuring entities shall have the right to choose procuring agencies by themselves, no unit or individual may, by any means, designate procuring agencies for them.
Article 20 Where a procuring entity, in accordance with law, entrusts a procuring agency with the procurement, the procuring entity shall conclude an agreement with the procurement agency in which the entrusted matters are defined and the rights and obligations of both parties are agreed upon.
Article 21 The suppliers refer to the legal persons, other organizations or natural persons that provide goods, engineering or services to the procuring entities.
Article 22 A supplier in government procurement shall meet the following requirements:
1. Having the capacity to independently bear civil liabilities;
(II) Having good business reputation and sound financial and accounting system;
(III) Having the equipment and professional technical ability necessary for performing contracts;
(IV) Having a good record of paying taxes and social security funds in accordance with the law;
(V) having no record of serious violation of law in its business operation within three years before participating in the government procurement activity; and
(VI) Other conditions prescribed by laws and administrative regulations.
A procuring entity may specify special requirements for suppliers on the basis of the special requirements of a particular item for procurement, provided that they are not unreasonable requirements that result in differential or discriminatory treatment of suppliers.
Article 23 A procuring entity may require the suppliers participating in government procurement to provide the documents certifying their qualifications and information about their business performance and examine the qualifications of the suppliers according to the requirements specified by this Law on the suppliers and the specific requirements imposed on them by the items to be procured.
Article 24 Two or more natural persons, legal persons or other organizations may form an association to jointly participate in government procurement as a single supplier.
Where the form of consortium is taken in government procurement, each of the suppliers in the consortium shall meet the requirements specified in Article 22 of this Law, and a consortium agreement shall be submitted to the procuring entity, in which the jobs and obligations undertaken by each party to the consortium are clearly stated. All parties to the consortium shall jointly enter into a procurement contract with the procuring entity, bearing joint and several liabilities to the procuring entity for matters agreed upon in the contract.
Article 25. Government procurement parties may not collude to damage State interests, the public interest of society or the lawful rights and interests of other parties, nor use any means to exclude other suppliers from competition.
Suppliers may not bribe buyers, procurement agencies, members of bid evaluation committees, members of competitive negotiation groups and members of price inquiry groups, or use any other improper means to win a bid or make a deal.
Procurement agencies shall not bribe buyers or use any other improper means to obtain illegal benefits.
Chapter 3 Methods of Government Procurement
Article 26 Government procurement shall adopt the following methods:
1. public bidding;
(II) invited bidding;
(III) competitive negotiation;
(IV) single-source procurement;
6. other methods as may be approved by the department for supervision over government procurement under the State Council.
Public invitation shall be the main form of government procurement.
Article 27 Where procurement parties should purchase goods or services in the form of public invitation for bid, the specific amounts shall be defined by the State Council if such goods or services are to be procured under central budget, or by the people's governments of provinces, autonomous regions or municipalities directly under the Central Government if such goods or services are to be procured under local budget. If, under special circumstances, they need to be procured in a form other than public invitation for bid, the procurement procedures shall be approved by the procurement regulatory department of the people's government at or above the level of a city divided into districts or an autonomous prefecture.
Article 28. A buyer may not split up the goods or services that should be procured through public invitation of bids into parts or by any other means to avoid procurement through public invitation of bids.
Article 29 Under one of the following conditions, goods or services may be procured by invited bidding in accordance with this Law:
1. special nature, to be procured from a limited number of suppliers; or
(II) where the cost of public invitation forms an excessive proportion of the total value of the government procurement items.
Article 30 Under one of the following conditions, goods or services may be procured through competitive negotiation in accordance with this Law:
1. after bidding, no supplier submits any tender, or qualified tender is lacking or re-bidding fails;
2. projects with complex technology or special nature, for which detailed specifications or specific requirements cannot be determined;
(III) The time required for bidding cannot meet the users’ urgent needs;
(IV) where the total value of the goods or services to be procured cannot be determined in advance.
Article 31 Under one of the following conditions, goods or services may be procured through single-source procurement in accordance with this Law:
1. goods or services can only be procured from a sole supplier;
(II) procurement from other suppliers fails due to unforeseeable emergency;
3. where consistency of the items or compatibility of the services procured requires procurement of additional items or services from the same supplier, provided that the total value of the additional procurement does not exceed 10% of the value of the original contract.
Article 32 Inquiry about quotations may be adopted in accordance with this law for government procurement of those goods the specifications and standards of which are uniform, the supply of which is sufficient and the prices of which change within a small range.
Chapter 4 Government Procurement Procedures
Article 33. When a department responsible for drawing up departmental budgets draws up the budget for the next financial year, it shall list in the budget the government procurement items and funds for the year and report them to the finance department at the same level for compilation. The departmental budget shall be approved in accordance with the limits of administrative authority and procedures.
Article 34 Where commodities or services are to be procured in the form of invited bidding, the procuring entity shall select at random three or more suppliers from among those that meet the qualifications required, and send invitation letters to them.
Article 35. When goods and services are procured through invitation of bids, the period between the date on which the issue of the bid invitation documents commences and the deadline for the submission of bid documents by the bidders may not be less than 20 days.
Article 36 Where procurement takes the form of invitation for bid, the bid should be cancelled in any of the following circumstances:
1. there are less than three suppliers that meet the professional conditions or give substantive response to the bid-invitation documents;
(II) where violations of laws or regulations occur to the detriment of impartial procurement;
(III) where all the offers of the bidders exceed the budget for procurement and cannot be paid by the purchaser;
(IV) where the procurement project is cancelled due to major changes in circumstances.
After the bids lose, the Purchaser shall inform all the bidders of the reason therefor.
Article 37. After the bids have been invalidated, a new invitation of bids shall be organized, unless the procurement has been cancelled. If it is necessary to adopt another procurement method, the approval of the government procurement regulatory department of the people's government at the level of municipalities and autonomous prefectures divided into several districts and above or of the relevant government departments shall be obtained before procurement activities begin.
Article 38 Where competitive negotiation is adopted for procurement, the following procedure shall be followed:
1. Formation of a negotiation team. The negotiating group shall be composed of the representatives of the procuring entity and the relevant experts, with an odd number of members totalling three or more. Of these members, the number of experts shall not be less than two- thirds.
(II) Preparing documents for negotiation. The negotiating documents shall specify the negotiating procedure, the negotiating contents, the terms of the draft contract and the standards for award of contract etc.
(III) Deciding on the name list of the suppliers to be invited to participate in the negotiation. The negotiation team decides the participation of no less than three suppliers from the list of qualified suppliers and will provide them with the negotiation documents.
(IV) Negotiation. All members of the negotiation team discuss with a single supplier individually. During the negotiations, no party shall disclose technical data, prices and other information of other suppliers regarding the negotiations. Where there is any material change in the negotiating documents, the negotiating group shall notify in writing all the suppliers participating in the negotiation.
(V) Determining the successful supplier. Upon conclusion of the negotiation, the negotiation team shall request all the suppliers participating in the negotiation to make final quotations within a specified time limit, and the purchaser shall determine the successful supplier from the candidates recommended by the negotiation team based on the principles that the suppliers meet the procurement requirements, quality and service are equal and the quotation is the lowest, and notify the results to all unsuccessful suppliers participating in the negotiation.
Article 39 Where the single-source procurement method is adopted, the buyer and the supplier shall comply with the principles stipulated in this Law and carry out procurement on the basis of assurance of procurement project quality and the reasonable price agreed between both parties.
Article 40 Where inquiry about quotations is adopted, the following procedure shall be followed:
1. Establishing a price inquiry group. The quotation request group shall be composed of the buyer's representative (s) and the relevant experts, with an odd number of members totalling three or more. Of these members, the number of experts shall not be less than two- thirds. The team shall specify the composition of price for the items to be procured and the criteria for evaluating a deal concluded.
2. determining the list of the inquired suppliers. The quotation request team shall decide on not less than three suppliers from the list of the qualified suppliers based on the procurement requirements and issue a quotation request notice to such suppliers to obtain their quotations.
3. Inquiry about quotations. The inquiry team shall request the inquired supplier to quote unchangeable price once for all.
(IV) Determining the successful supplier. The Purchaser shall confirm the successful supplier on the principle that the price is the lowest and the quality and service are equal to the purchase demand, and notify the result to all unsuccessful suppliers who are inquired of about the price.
Article 41 The procuring entity or its appointed procuring agency shall, before acceptance, make arrangements for inspection of the performance of the contract by the supplier. For large-scale and complicated government procurement items, it is required to invite quality-testing agencies recognized by the State to participate in the inspection. The members of the receiving party shall sign their names on the Certificate of Acceptance and bear the corresponding legal liabilities.
Article 42 The procuring entity and the procuring agency shall properly preserve the procurement documents for each item, and they may not forge, alter, conceal or destroy such documents. Procurement documents shall be preserved for at least 15 years after the date on which the procurement is concluded.
Procurement documents include procurement records, procurement budget, bidding documents, bid documents, bid evaluation criteria, evaluation report, bid decision document, contract text, acceptance certificate, challenge reply, complaint handling decision and other relevant documents and data.
The records of procurement shall at least include the following:
1. the category and name of the procurement item;
(II) budget for procurement, structure of funds and contract price;
3. form of procurement, and the reason if any form other than public bidding is adopted;
(IV) requirements and reasons set for the suppliers to be invited and selected;
(V) standards for bid evaluation and reasons for deciding on the bid winner;
(VI) reasons for canceling the bid; and
(VII) the records relating to adoption of the procurement method other than bid invitation.
Chapter 5 GOVERNMENT PROCUREMENT CONTRACT
Article 43 Government procurement contracts shall be governed by the Contract Law. The rights and obligations of the procuring entity and the supplier respectively shall, on the principle of equality and voluntariness, be agreed on in a contract.
A buyer may appoint a procurement agency to conclude, on its behalf, a government procurement contract with the supplier. Where a contract is signed by the procurement agency in the name of the procurement party, the power of attorney issued by the procurement party shall be submitted as an appendix to the contract.
Article 44. Government procurement contracts shall be in writing.
Article 45. The State Council regulatory department for government procurement shall, in conjunction with the relevant State Council departments, stipulate the clauses essential to government procurement contracts.
Article 46 The procuring entity, the winner of the bid or the successful supplier shall, within 30 days from the date the notice informing the said winner or supplier of their acceptance is sent out, sign the government procurement contract pursuant to the particulars set in the procurement documents.
The notices of winning the bid and concluding the transaction shall have binding force upon both the bid winner and the supplier. If, after a notice of winning of bid or conclusion of transaction is sent out, the procuring entity alters the result regarding the winner of bid or the successful supplier, or the said winner or supplier renounces the project for which it wins the bid, it shall bear legal liability in accordance with law.
Article 47 The procuring entity shall, within seven working days from the date the contract for government procurement items is concluded, submit a copy thereof to the department for supervision over government procurement at the same level and the relevant departments for the record.
Article 48 Subject to consent of the procuring entity, the winner of the bid or the successful supplier may perform the contract by subcontract in accordance with law.
If a government procurement contract is subcontracted, the winner of the bid or the successful supplier shall be responsible to the procurement party for the procurement project and the subcontract project, and the subcontractor shall be responsible for the subcontract project.
Article 49 In case the procurement party needs an increase of the same commodities, engineering works or services as the contracted subject in the process of performance, supplementary contracts may be concluded with the procurement party, provided all the other terms and conditions remain unchanged, and the total amount of such supplementary contract prices does not exceed 10% of the original contract price.
Article 50. Both parties to a government procurement contract shall not alter, suspend or terminate the contract without authorization.
In case the continuous performance of a government procurement contract would do harm to the interests of the state and society, both parties thereto shall alter, suspend or terminate the contract. The party at fault shall be liable for compensation. If both parties are at fault, each shall bear the corresponding liability.
Chapter 6 Query and Complaint
Article 51. If a supplier has queries concerning government procurement matters, he may question the buyer and the buyer shall reply in a timely manner, but the contents of the reply may not involve trade secrets.
Article 52 Where a supplier's procurement document, course, bid winning or transaction result has caused any damage to the rights and interests thereof, the said supplier may pose a challenge to the purchaser in writing within seven working days after he/she/it knows or should have known of such damage.
Article 53. The buyer shall reply within seven working days of receiving a written query from the supplier, and shall notify the query supplier and other suppliers in writing, but the contents of the reply may not involve trade secrets.
Article 54 Where a procuring agency is entrusted by the procuring entity with the procurement, the suppliers may address inquiries or queries to the agency, which shall, in accordance with Articles 51 and 53 of this Law, make a reply regarding matters within the limits of authorization given by the procuring entity.
Article 55. If the supplier making the query is not satisfied with the response given by the buyer or the procurement agency, or the buyer or procurement agency has not replied within the stipulated period, the supplier may lodge a complaint with the government procurement regulatory department at the same level within 15 working days of the expiry of the period for reply.
Article 56 The department for supervision over government procurement shall, within 30 working days after receipt of the complaint, make a decision on handling the matter complained about and inform in writing the complainant and the parties related to the matter complained about.
Article 57. While handling a complaint, the government procurement regulatory department may, depending on the circumstances, notify the buyer in writing to suspend procurement activities, but the suspension period may not exceed 30 days.
Article 58. If a complainant is dissatisfied with the handling decision of the government procurement regulatory department, or the government procurement regulatory department fails to handle the complaint within the stipulated period, the complainant may apply for administrative reconsideration or institute administrative litigation in the people's court in accordance with the law.
Chapter 7 Supervision and Inspection
Article 59. Government procurement regulatory departments shall strengthen supervision and inspection of government procurement activities and centralized procurement institutions.
The supervision and inspection shall include the following:
1. the implementation of the laws, administrative regulations and rules regarding government procurement;
2. the implementation of the procurement scope, methods and procedures; and
(III) the professional quality and skills of the government procurement personnel.
Article 60. Government procurement regulatory departments shall not set up centralized procurement institutions and shall not participate in the procurement activities of government procurement items.
There shall be no subordination or other relationship of interest between procurement agencies and administrative authorities.
Article 61. Centralized procurement institutions shall establish a sound internal regulatory system. The procedures for making and implementing decisions on procurement activities shall be explicit and the institutions shall supervise and restrain each other. The powers and duties of the persons who are engaged in procurement and of the persons who are in charge of examination and acceptance of procurement contracts shall be defined explicitly and be separate from each other.
Article 62 The procuring persons of the institutions for centralized procurement shall possess the necessary professional qualifications and expertise for the specialized posts, as required by the regulations of the department for supervision over government procurement.
The institutions for centralized procurement shall conduct rigorous education and training among their staff members, regularly assess the professional standards, achievements in their work and professional ethics of the staff members. No one who fails in the examination and appraisal may remain in the post.
Article 63 The standards for government procurement items shall be made public.
Where the procurement methods provided for in this Law are adopted, the procuring entity, upon completion of the procurement, shall publish the result of the procurement.
Article 64. Buyers must carry out procurement in accordance with the procurement methods and procedures stipulated herein.
No work unit or individual may, in violation of the provisions hereof, require the procuring entity or its staff members to procure from the suppliers designated by them.
Article 65. Government procurement regulatory departments shall inspect the procurement activities of government procurement items. Government procurement parties shall reflect the situation truthfully and provide the relevant materials.
Article 66 The government procurement supervisory and administrative department shall make an appraisal of the centralized procurement organization in respect of price, result of fund-efficiency, service quality, reputation and compliance with law, and make public the result of the appraisal at a regular time.
Article 67. Government departments that are responsible for administrative supervision of government procurement in accordance with the provisions of laws and administrative regulations shall, in accordance with their division of responsibilities, strengthen supervision of government procurement activities.
Article 68 Auditing authorities shall implement the auditing supervision of the government procurement. The government procurement activities of government procurement supervisory and administrative department and all the government procurement parties should accept the audit supervision of the audit department.
Article 69. Supervisory authorities shall strengthen the supervision of State authorities, civil servants and other personnel appointed by State administrative authorities that participate in government procurement activities.
Article 70. Any work unit or individual has the right to lodge complaints about and report violations of law in the course of government procurement activities, and the relevant departments and authorities shall handle the matters in a timely manner in accordance with their respective duties.
Chapter 8 Legal Liabilities
Article 71 Where a procuring entity or procuring agency commits one of the following acts, it shall be ordered to set it right within a time limit and be given a disciplinary warning, and may also be fined; and the persons directly in charge and the other persons directly responsible shall be given sanctions by the competent administrative department where they belong or by the relevant authority, and the matter shall be circulated:
1. adopting, without authorization, other procurement methods, instead of public invitation;
(II) raising the standard of procurement arbitrarily;
(IV) treating suppliers differentially or discriminatingly by raising unreasonable requirements;
(V) in the course of procurement through bid invitation, holding consultation or negotiation with bidders;
(VI) failing to conclude a procurement contract with the winner of the bid or the successful supplier after the notice informing the said winner or supplier of its acceptance is sent out; and
(VII) refusing to subject itself to supervision conducted by the relevant department in accordance with law.
Article 72 Where a procuring entity or procuring agency or its staff member commits one of the following acts, which constitutes a crime, it/he shall be investigated for criminal responsibility in accordance with law; if the offence is not serious enough to constitute a crime, it/he shall be fined, and the illegal gains, if any, shall be confiscated, if the person involved is a State functionary, he shall be given an administrative sanction in accordance with law:
1. colluding, in bad faith, with a supplier or a procurement agency;
2. in the course of procurement, accepting bribes or obtaining other illegitimate benefits;
(III) It provides false information in the supervision or inspection lawfully conducted by the relevant department; or
(IV) Divulging the base price of a bid before opening the bid.
Article 73 The violations, mentioned in the preceding two articles, that affect or are likely to affect the results in respect of the winner of a bid or the successful supplier, shall be dealt with in any of the following ways:
1. If no bid winning or transaction supplier is determined, the procurement activities shall be terminated;
2. where the winner of the bid or the successful supplier is determined but the procurement contract has not been performed, the contract shall be cancelled and a new winner of the bid or successful supplier shall be determined from among the qualified candidates for the winner of the bid or successful supplier; and
(III) Where performance of the procurement contract causes losses to the procuring entity or supplier, the person liable shall bear the responsibility to pay compensation.
Article 74. If a buyer fails to appoint a centralized procurement institution to carry out centralized procurement of government procurement items, the government procurement regulatory department shall order rectification. If the buyer refuses to do so, payment of funds in accordance with the budget shall be suspended and the personnel directly in charge and the other personnel directly responsible shall be penalized by the department in charge at the level above or by the relevant authorities in accordance with the law.
Article 75 Where the procuring entity fails to publish the standards for government procurement items and the results of the procurement, it shall be ordered to rectify and the persons directly in charge shall be given sanctions in accordance with law.
Article 76. If a buyer or procurement agency violates the provisions of this Law by concealing or destroying procurement documents that should be retained, or forging or altering procurement documents, the government procurement regulatory department shall impose a fine of not less than Rmb 20,000 and not more than Rmb 100,000, and shall impose sanctions in accordance with the law on the personnel directly in charge and other directly responsible personnel. If the case constitutes a crime, criminal liability shall be pursued in accordance with the law.
Article 77 Where the supplier is under any of the following circumstances, it shall be imposed upon a fine of not less than 0.5% but not more than 1% of the purchase money, be listed into the name list of records on misconducts, and be prohibited from participating in government procurement activities within one to three years; if there are any illegal proceeds, such proceeds shall be confiscated concurrently; if the circumstance is serious, the administration for industry and commerce shall revoke its business license; if any crime is constituted, it shall be subject to criminal liabilities in accordance with the law:
1. providing false materials in an attempt to win a bid or become the successful supplier;
(II) to vilify and squeeze out other suppliers by illicit means;
3. colluding, in bad faith, with the procuring entity, other suppliers or the procuring agency;
(IV) bribing or providing illegitimate benefits to the procuring entity or agency;
(V) in the course of procurement through bid invitation, holding consultation or negotiation with the procuring entity;
(VI) refusing to subject itself to supervision by the relevant department or providing false information.
Where a supplier commits one of the first five acts mentioned in the preceding paragraph, the result of bid winning or transaction conclusion shall be invalidated.
Article 78 Where the procuring agency, in making procurement on behalf of the government, commits an illegal act, it shall be fined pursuant to the provisions of relevant laws, and it may be banned from engaging in the procuration of government procurement for one to three years; if a crime is constituted, it shall be investigated for criminal responsibility in accordance with law.
Article 79. If any party involved in government procurement commits an illegal act stipulated in Article 71, 72 or 77 hereof, causing losses to others, he shall bear civil liability in accordance with the relevant civil laws and regulations.
Article 80. Personnel of government procurement regulatory departments who, in violation of the provisions hereof, abuse their powers, neglect their duties or practise favouritism in the course of supervision and inspection shall be subject to administrative penalty in accordance with the law. If a crime is constituted, criminal liability shall be pursued in accordance with the law.
Article 81. If the government procurement regulatory department fails to handle the complaint within the stipulated time period, the directly responsible person in charge and other directly responsible personnel shall be subject to administrative penalty.
Article 82 If, at the time of appraising the performance of a centralized procurement institution, the government procurement supervisory and administrative department gives false statements or conceals the true facts, or it fails to carry out appraisal and announce the result of appraisal at regular intervals, it shall duly make rectification, and its superior organ or the supervisory department shall circulate a notice of criticism regarding the directly responsible persons and give administrative sanctions to those directly responsible.
Where the institution for centralized procurement, when undergoing appraisal by the department for supervision over government procurement, makes a false report of its performance or conceals the truth, it shall be fined not less than 20,000 yuan but not more than 200,000 yuan, and the matter shall be circulated a notice of criticism; if the circumstances are serious, it shall be disqualified as a procuring agency.
Article 83. If any work unit or individual obstructs or restricts suppliers from entering the government procurement market in its/his region or industry, it/he shall be ordered to rectify the situation within a specified period. If it/he refuses to do so, the person in charge of the work unit or the individual shall be penalized by the administrative department in charge at the level above, or by the relevant authorities.
Chapter 9 Supplementary Provisions
Article 84. If, in respect of government procurement that uses loans from international organizations or foreign governments, the agreement reached between the lender, the financier and the Chinese party contains other stipulations on the specific conditions for the procurement, such stipulations may apply provided that they do not harm the national or public interest.
Article 85 This Law shall not apply to emergency procurements carried out due to serious natural disasters or other events of force majeure, or procurements involving national security or secrets.
Article 86 Regulations governing military procurement shall be separately formulated by the Central Military Commission.
Article 87 The specific steps and measures for the implementation of this Law shall be formulated by the State Council.
Article 88 This Law shall go into effect as of January 1, 2003.
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