Placement Rules for Government and Municipal Orders for Certain Types of Foreign Products.

28.07.2011

Legal Update No. 254.

Goltsblat BLP advises that Order No. 217 of the Ministry for Economic Development of the Russian Federation dated 12 May 2011 "On Foreign Goods Admission Requirements for Placing Supply Orders to Satisfy Customers' Needs" (the “Order”), which came into effect on 10 July 2011 and which will become inoperative on 31 December 2011, is adopted on the basis of article 13 of Federal Law No. 94-FZ dated 21 July 2005 "On Placing Goods for Supply of Goods, Works and Services for State and Municipal Needs".

The Order determines specifics for the following categories of foreign goods to be permitted for purchase within the scope of state and municipal orders for: live animals, textiles, clothes, furs, leather, leather goods and items made thereof, footwear, medicaments and other chemically synthesized products; radio, television, communication and medical equipment; measurement gauges, photo and cinema equipment, watches, vehicles and other means of transportation and garage equipment. 

The Order stipulates that if the above goods are manufactured in Russia (or -  for certain goods  - in Belarus) tenderers or auction participants proposing to supply them enjoy a 15% preference in terms of the contract price, i.e.:

  • if the above goods are manufactured abroad, tender proposals for their supply are assessed by the contract price criterion by applying a 15% raising factor to the contract price they specify; and
  • contracts with auction winners offering to supply the above goods from foreign manufacturers  are signed at a price that is 15% less than the price they quote.

When orders are placed,  the 15% preference rules do not apply if:

  • several types of goods (works or services), a part of which is not specified in the Order are purchased within the same tender, bidding (lot);
  • a tender or an auction is declared aborted and the client's order is placed with the sole source supplier; and
  • there are no proposals for supply of Russian goods among tender or auction bids.

The Order also recommends that in their tender/auction documentation clients from state and municipal organisations: 

  • require bidders to specify countries of origin of the goods they supply (otherwise they will not be admitted to a tender/auction); and
  • specify a provision on bidders' liability for reliability of information they provide in their proposals about the country of origin of their goods.    

For additional information, please contact:

Nikolay Voznesenskiy,
Head of Competition Practice, Goltsblat BLP,
T: +7 (495) 287 44 44,
E-mail: info@gblplaw.com

Nina Belozertseva,
Head of Healthcare and Pharmaceuticals Practice, Goltsblat BLP,
T: +7 (495) 287 44 44,
E-mail: info@gblplaw.com




 

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