Regulations for Bid Bond, Guarantee Bond and Other Guarantees

Promulgated on May 17, 1999 Amended on August 24, 2001 Amended on March 26, 2002 Amended on November 19, 2003 Amended on uly 12, 200! Amended on A"r#l 2$, 2010 %ast Amended on &ecember 2$, 2010

Chapter 1 General Principles Article 1 These regulations are prescribed pursuant to paragraph 3 of Article 30 of the Government Procurement Act (hereinafter referred to as the Act). Article 2 The terms referred to in paragraph follo!s" of Article 30 of the Act are defined as

#. financial institution" a ban$% credit cooperative association% credit department of farmers& or fishermen&s associations or 'hungh!a Post 'o.% (td. that has been approved b) the central competent authorities in target enterprises to issue promissor) note% chec$ or certificate of deposit* . financial institution&s promissor) note" an instrument issued b) a financial institution assuring the pa)ment of a stipulated sum of mone) to the pa)ee or bearer of the chec$ unconditionall) on the due date at the same financial institution or an) branches thereof* 3. financial institution&s chec$" an instrument issued b) a financial institution entrusting another financial institution to pa) a stipulated sum of mone) to the pa)ee or bearer of the chec$ unconditionall) at sight* +. financial institution&s certified chec$" a chec$ that a financial institution has mar$ed on it as accepted% certified or other s)non)ms and dul) signed* ,. postal mone) order" a mone) order issued and to be cashed b) 'hungh!a Post 'o.% (td.* -. bearer&s government bond" a bearer&s debt instrument issued b) this nation&s government entities or government.o!ned enterprises* /. financial institution&s certificate of deposit pledged to the procuring entit)" a certificate of deposit or transferable bearer&s certificate of deposit that has been
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pledged to the procuring entit)* 0. ban$" an institution established pursuant to Article of the 1an$ing Act*

2. irrevocable standb) letter of credit confirmed b) a ban$" an irrevocable standb) letter of credit issued b) a foreign ban$ not approved b) this nation&s government and not registered for business !ithin this nation% and confirmed b) a ban$* #0. ban$&s !ritten 3oint and several guarantee" a letter of 3oint guarantee issued b) a ban$ to assume 3oint and several liabilit)* and ##. insurer" an institution established% approved and a business license issued pursuant to the 4nsurance Act. The financial institution&s certificate of deposit pledged to the procuring entit) referred in the subparagraph / of the preceding paragraph ma) be substituted b) the beneficial certificates of trust funds issued b) the investment and trust compan). Article 3 An entit) conducting procurement shall% e5cept !here the deposit of bid bond or guarantee bond ma) be !aived% provide in the tender documentation the t)pes% amount% and !a)s of deposit% refund and termination of bid bond% guarantee bond% and other guarantees to be deposited b) a supplier. 6here foreign suppliers are permitted to participate in procurement and that a foreign currenc) in its e7uivalent value ma) be used for bid bond or guarantee bond% an entit) shall prescribe in the tender documentation the t)pes and !a)s of deposit !ith respect to such foreign currenc). The e7uivalent foreign currenc) referred to in the preceding paragraph shall% unless other!ise provided in the tender documentation% be calculated at the closing spot bu)ing rate of the foreign e5change transaction at the 1an$ of Tai!an on the business da) before the date of deposit. Article 4 A bid bond or guarantee bond shall be deposited in the name of the tenderer or the !inning tenderer. Article 5 A supplier ma) deposit bid bond or guarantee bond in t!o or more forms as those provided in paragraph of Article 30 of the Act. 8or a deposited bid bond% the supplier ma)% upon the consent of the entit)% change the form b) !hich it !as deposited. Article 6
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6here the tender documentation re7uires a supplier to deposit a bid bond% it shall also prescribe that the supplier shall deposit the bid bond% prior to the closing time for submission of tenders% to a designated place of receipt or a designated account held !ith a financial institution. 95cept for cash% a supplier ma) send the bid bond b) enclosing it in the tender. 6here the tender documentation re7uires a supplier to deposit a guarantee bond or provide other guarantees% it shall also prescribe the deadline for deposit and place of receipt or account held !ith a financial institution. 6here a supplier deposits a bid bond or guarantee bond in the form of a financial institution&s pledged certificate of deposit% a designated depositing financial institution shall not be re7uired as a restriction* !here a supplier re7uests for creation of pledge at a financial institution% the pledgee shall not be re7uired to underta$e such action 3ointl). A bid bond or guarantee bond ma) be deposited via electronic means approved b) the responsible entit). Article 6here a bid bond or guarantee bond is deposited in the form of a financial institution&s promissor) note% chec$% certified chec$ or postal mone) order% such instruments shall be made pa)able at sight and the entit) shall be the pa)ee. 6here the pa)ee is not designated% the bearer entit) shall be the pa)ee. 6here a bid bond or guarantee bond is deposited in the form of a financial institution&s pledged certificate of deposit% ban$ issued or confirmed irrevocable standb) letter of credit% ban$&s !ritten 3oint and several guarantee% insurer&s insurance polic) of 3oint and several guarantee or other guarantees% the entit) shall be named as the pledgee% beneficiar)% guarantee beneficiar) or insured% as the case ma) be. Article ! The t)pes of guarantee bond are as follo!s" # . performance bond" a bond used for guaranteeing the performance of contract b) the supplier in accordance !ith the re7uirements of the contract* #3. refund bond for advance pa)ment" a bond used for guaranteeing supplier&s return of the portion of the advance pa)ment it received but has not been set off )et against actual pa)ment* #+. !arrant) bond" a bond used for guaranteeing the !arrant) liabilit) underta$en b) the supplier* #,. price difference bond" a bond used for guaranteeing that the supplier&s abnormall) lo! tender price !ill not lead to compromised 7ualit) of performance% failure to perform contract in good faith% or an) other e5traordinar) situations* and

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#-. others as determined b) the responsible entit). Chapter 2 Bid Bond Article " The amount of bid bond% !hich ma) be either a fi5ed sum or a fi5ed proportion of the tender price% shall be determined b) the entit) in the tender documentation. The fi5ed sum referred to in the preceding paragraph shall not% in principle% e5ceed ,: of the budget amount or the estimated total procurement value* the fi5ed proportion shall not% in principle% e5ceed ,: of the tender price. 4n an) event% the amount of bid bond shall not e5ceed ,0 million ;e! Tai!an <ollars. 8or procurement in !hich the a!ard of contract is based on unit price% the bid bond shall be a fi5ed sum. Article "#1 An entit) ma) prescribe in the tender documentation that% for suppliers !ho submit tenders electronicall)% their bid bonds ma) be reduced b) a fi5ed sum or proportion. =uch reduction shall be limited to a sum not e5ceeding #0: of the amount of bid bond. Article 1$ 6here a supplier deposits a bid bond in the form of an irrevocable standb) letter of credit issued or confirmed b) a ban$% ban$&s !ritten 3oint and several guarantee or insurer&s insurance polic) of 3oint and several guarantee% unless other!ise prescribed b) the tender documentation% the validit) period of such instruments shall be 30 da)s longer than that of the price offer set out in the tender documentation. 6here a supplier e5tends the validit) period of the offered price% the validit) period of the bid bond deposited b) the supplier shall be e5tended accordingl). Article 11 A supplier ma) elect to send the instruments that attest to the deposit of bid bond b) enclosing them !ith the follo!ing tender* ho!ever% a bid bond in cash shall be deposited to a designated place of receipt or a designated account held !ith a financial institution. #. 8or open tendering% such instruments shall be enclosed !ith the tender* in the case of multi.step tender opening% such instruments shall be enclosed !ith the first step&s tender. . 8or selective tendering% such instruments shall be enclosed !ith the tender submitted at the step follo!ing 7ualification evaluation.

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3. 8or limited tendering% such instruments shall be enclosed !ith the documentation for price negotiation or price comparison* !here price comparison adopts multi.step tender opening% such papers shall be enclosed !ith the first step&s tender. Article 12 6here one of the follo!ing circumstances occurs on tenderer or procurement% the bid bond deposited b) relevant suppliers shall be released. >o!ever% !here such bid bond shall not be released as re7uired b) the tender documentation% this provision shall not appl). #. An unsuccessful supplier. . 6here tender opening cannot proceed due to less than three participating tenderers. 3. 6here an entit) declares to nullif) procurement% or to cancel tender opening and a!arding of contract for a certain reason. +. 6here a supplier&s tender has been determined as not meeting the tendering re7uirements or bearing no possibilit) of being a!arding a contract% and the bid bond is released ahead of time upon the re7uest of the supplier. ,. 6here the validit) period of the supplier&s price offer has e5pired and that an e5tension has been refused. -. 6here a supplier fails to deposit the bid bond in time% or does not submit a tender after depositing the bid bond% or fails to submit a tender in time. /. 8or procurement in !hich contract has been a!arded and the successful supplier has deposited a guarantee bond as re7uired. Article 13 6here procurement is carried out under multiple a!ards on an itemi?ed basis pursuant to subparagraph + of paragraph # of Article , of the Act% a tenderer ma) deposit a bid bond for its tendering items either separatel) or 3ointl). 6here the deposit of bid bonds is made 3ointl)% the amount shall be the sum of the respective bid bonds for each tendering item. The 3ointl) deposited bid bonds referred to in the preceding paragraph ma) be released separatel) for each tendering item. Article 14 6here the !inning tenderer transfers the bid bond it deposited previousl) into a performance bond% and if the amount of bid bond e5ceeds that of performance bond% the e5cess portion shall be released to the !inning tenderer.
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4n circumstances !here the bid bond deposited b) a tenderer shall not be released% the bond as a !hole% after deduction the e5cess amount deposited, shall not be released. >o!ever% for procurement carried out under multiple a!ards% if a supplier deposits the bid bonds for its tendering items 3ointl)% the amount not to be released shall be calculated for each individual item. Chapter 3 Perfor%ance Bond Article 15 The amount of performance bond% !hich ma) be either a fi5ed amount or a fi5ed proportion of the contract amount% shall be determined b) the entit) in the tender documentation. The fi5ed sum referred to in the preceding paragraph shall not% in principle% e5ceed #0: of the budget amount or the estimated total procurement value* the fi5ed proportion shall not% in principle% e5ceed #0: of the contract amount. 8or procurement in !hich the a!ard of contract is based on unit price% the performance bond shall be a fi5ed sum. Article 16 6here there is an increase or decrease in contract amount during the contract performance period% the amount of performance bond shall be ad3usted according to the proportion of such increase or decrease. Article 1 6here a tenderer deposits a performance bond in the form of an irrevocable standb) letter of credit issued or confirmed b) a ban$% ban$&s !ritten 3oint and several guarantee or insurer&s insurance polic) of 3oint and several guarantee% unless other!ise prescribed b) the tender documentation% the validit) period of such instruments shall be 20 da)s longer than the time.limit for final construction% suppl) or installation prescribed in the contract. 6here a supplier fails to perform the contract !ithin the time.limit prescribed in the contract% or that inspection and acceptance ma) not be accomplished !ithin the validit) period referred to in the preceding paragraph due to causes attributable to the supplier% the validit) period of performance bond shall be e5tended according to the duration of such dela). Article 1! The time.limit for depositing a performance bond shall be reasonabl) prescribed b) an entit) in the tender documentation% upon considering the characteristics and actual needs of the procurement. 8or procurement above the threshold for supervision% a reasonable time.limit of #+ da)s or more shall be prescribed.
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6here the performance bond deposited b) a supplier is be)ond the re7uired time. limit% or at an insufficient amount or inconsistent !ith the re7uired procedure or format% it shall be re3ected. >o!ever% under such circumstances that it can be rectified% the entit) shall demand the supplier to ma$e rectification !ithin a specified period* if the supplier fails to rectif) !ithin the specified period% its performance bond shall be re3ected. An entit) ma) enter into a contract !ith a supplier before the supplier&s depositing of performance bond in advance. Article 1" The release of performance bond ma) be made in !hole or in parts% conditional upon progress of contract performance% inspection and acceptance% maintenance or !arrant) period% etc.% and this shall be prescribed b) the entit) in the tender documentation% upon considering the characteristics and actual needs of the procurement. Performance bond shall% unless other!ise prescribed in the contract or that there are circumstances in !hich it shall not be released% be released upon conditions for release have been met and !hen nothing is pending to be resolved. 4n the event that the contract is terminated% rescinded or suspended for causes not attributable to the supplier% the bond ma) be released ahead of time. >o!ever% !here the contract is being suspended% a performance bond shall be deposited again !hen the cause for the suspension has been eliminated. 6here procurement is carried out under multiple a!ard pursuant to subparagraph + of paragraph # of Article , of the Act% and that the supplier deposits the performance bond for the a!arded items 3ointl)% the bond shall be released separatel) in accordance !ith the preceding t!o paragraphs. Article 2$ The circumstances in !hich a performance bond and the accrued interest thereon shall not be released shall be prescribed b) an entit) in the tender documentation upon considering the characteristics and actual needs of the procurement. An entit) ma) prescribe in the tender documentation the circumstances in !hich a part or the !hole amount of performance bond (including the accrued interest thereon% applicable hereinafter) deposited b) a supplier shall not be released as follo!s" #. !here one of the circumstances provided in subparagraphs 3 to , of paragraph # of Article ,0 of the Act occurs% and that claim for damages ma) be sought after pursuant to the first part of paragraph of the same Article% an amount of the bond that e7uals the amount of the claim shall not be released* . !here the supplier is in breach of Article -, of the Act b) assigning the contract to other parties% the !hole amount of the bond shall not be released* 3. !here the supplier has reduced the !or$ or materials !ithout prior approval% and that the amount of the !or$ or materials thus reduced plus the losses thus
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incurred cannot be completel) set off against the contract value pa)able% an amount of the bond e7ual to the insufficient amount shall not be released* +. !here part of the contract is terminated or rescinded due to causes attributable to the supplier% an amount of the bond calculated based on the proportion of the contract value accounted for b) the value of such part shall not be released* !here the !hole contract is terminated or rescinded% the !hole amount of the bond shall not be released* ,. !here the sub3ect matter does not pass inspection or acceptance and the supplier fails to ta$e actions as re7uired !ithin the time.limit specified in the notice% and that the amount of the non.conforming parts and the losses thus incurred% plus an) additional e5penses or punitive penalties cannot be completel) set off against the contract value pa)able% an amount of the bond e7ual to the insufficient amount shall not be released* -. !here the supplier fails to perform the !hole or part of the contract !ithin time.limit prescribed in the contract or an agreed e5tension thereof b) entit)% and that the amount of dela) penalt) cannot be completel) set against the contract value pa)able% an amount of the bond e7ual to insufficient amount shall not be released* the the off the

/. !here the supplier is re7uired to return an amount of the contract value paid but fails to do so% the li$e amount of the bond shall not be released* 0. !here the supplier fails to e5tend the validit) period of the bond as prescribed b) the contract% the amount that re7uires e5tension shall not be released* and 2. an) other circumstances attributable to the supplier% !hich results in a loss suffered b) the entit)% and that the supplier fails to pa) the compensation !hich it is liable% the amount of the bond e7ual to the compensation pa)able shall not be released* The performance bond referred to in the preceding paragraph that shall not be released ma)% for the circumstances in !hich release in parts is re7uired b) the contract% be the part that has not been released* the accrued interest that shall not be released shall be the interest on such bond accrued after the bond has been deposited. 6here t!o or more circumstances referred to in paragraph occur in one contract% these shall be applied separatel). >o!ever% the summed amount shall% !here it e5ceeds the total amount of the performance bond% be limited to the total amount. Chapter 4 Refund Bond for Ad&ance Pa'%ent Article 21 An entit) ma)% upon considering the characteristics and actual needs of the procurement% prescribe in the tender documentation that the !inning tenderer ma) receive an advance pa)ment and amount thereof% and that the tenderer shall% prior to receiving the advance pa)ment% provide a refund bond for advance pa)ment in the li$e
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amount. 6here necessar)% an entit) ma) notif) the supplier to furnish an e5planation as to the use of advance pa)ment after receiving such pa)ment. Article 22 An entit) shall% upon considering the characteristics and actual needs of the sub3ect procurement% prescribe in the tender documentation that the refund bond for advance pa)ment ma) either be reduced progressivel)% pro rata to the progress or the contract value of the part that has been performed b) the supplier% or released in !hole upon satisfactor) inspection and acceptance. 6here a supplier fails to perform as re7uired b) the contract% or that the contract is terminated or rescinded% an entit) ma)% at an) time% demand that the supplier repa) the remaining portion of the refund bond for advance pa)ment plus interest% or that such amount be set off against the amount pa)able to the supplier. The calculation of the interest referred to in the preceding paragraph% and the circumstances under !hich the entit) ma) demand for refund% shall be prescribed e5plicitl) in the tender documentation% and the same shall also be stated in the refund bond for advance pa)ment. Article 23 6here a tenderer deposits a refund bond for advanced pa)ment in the form of an irrevocable standb) letter of credit issued or confirmed b) a ban$% ban$&s !ritten 3oint and several guarantee or insurer&s insurance polic) of 3oint and several guarantee% unless other!ise prescribed b) the tender documentation% the validit) period of such instruments shall be 20 da)s longer than the time.limit for final construction% suppl) or installation prescribed in the contract. 6here a supplier fails to perform the contract !ithin the time.limit prescribed in the contract% or that inspection and acceptance ma) not be accomplished !ithin the validit) period referred to in the preceding paragraph due to causes attributable to the supplier% the validit) period of refund bond for advance pa)ment shall be e5tended according to the duration of such dela). Chapter 5 (arrant' Bond Article 24 An entit) ma)% upon considering the characteristics and actual needs of the procurement% prescribe in the tender documentation that the !inning tenderer shall deposit a !arrant) bond% before being paid for the sub3ect matter of the contract being performed upon passing the inspection and acceptance. 6here the !arrant) period is commenced in stages% the bond ma) also be deposited in stages.

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The !arrant) bond referred in the preceding paragraph ma) be substituted b) a performance bond or contract value pa)able of the li$e amount. Article 25 The amount of !arrant) bond% !hich ma) be either a fi5ed amount or a fi5ed proportion of the contract amount% shall be determined b) the entit) in the tender documentation. The fi5ed sum referred to in the preceding paragraph shall not% in principle% e5ceed 3: of the budget amount or the estimated total procurement value* the fi5ed proportion shall not% in principle% e5ceed 3: of the contract amount. Article 26 6here a tenderer deposits a !arrant) bond in the form of an irrevocable standb) letter of credit issued or confirmed b) a ban$% ban$&s !ritten 3oint and several guarantee or insurer&s insurance polic) of 3oint and several guarantee% unless other!ise prescribed b) the tender documentation% the validit) period of such instruments shall be 20 da)s longer than the !arrant) period prescribed in the contract. Article 2 The release of !arrant) bond ma) be made in !hole or in parts% conditional upon completion of the items or stages of !arrant) !ithin the !arrant) period% and this shall be prescribed b) an entit) in the tender documentation upon considering the characteristics and actual needs of the procurement. Article 2! The circumstances in !hich a !arrant) bond and the accrued interest thereon shall not be released shall be prescribed b) an entit) in the tender documentation upon considering the characteristics and actual needs of the procurement. =ubparagraphs through 2 of paragraph of Article 0 shall appl) mutat#s mutand#s to the circumstances in !hich a !arrant) bond and the accrued interest thereon shall not be released. 6arrant) bond shall% unless there is an) circumstance in !hich it shall not be released% be released upon e5pir) of the !arrant) period and !hen nothing is pending to be resolved. Chapter 6 Other Bonds and Guarantees Article 2" 6here a tenderer submits% pursuant to paragraph of Article 3/ of the Act% a

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ban$&s 3oint and several guarantee or an insurer&s insurance polic) of 3oint and several guarantee in respect of contract performance and compensation% the follo!ing re7uirements shall be follo!ed" #. the amount of the 3oint guarantee or 3oint guarantee insurance polic) shall not be less than the total tender price* . the 3oint guarantee or 3oint guarantee insurance polic) shall be submitted together !ith 7ualification documents* and 3. the re7uirements for a performance bond as regards its validit) period% contents% release or non.release% etc. shall appl) mutat#s mutand#s to the 3oint guarantee or 3oint guarantee insurance polic). The total tender price referred to in subparagraph # of the preceding paragraph ma) be in one of the follo!ing circumstances" #. !here a!ard of contract is based on total price% it refers to the total tender price offered b) the tenderer* . !here a!ard of contract is based on unit price% it refers either to the estimated total procurement value specified in the tender documentation or to the product of the unit price 7uoted b) the tenderer and the estimated procurement 7uantit) specified in the tender documentation* or 3. !here 7ualification evaluation in selective tendering procedures is underta$en% it is either as a tenderer&s estimate based on the sub3ect of tendering or the entit)&s estimated total procurement value% or the fi5ed amount specified in the tender documentation. 4n the event that the amount of the 3oint guarantee or 3oint guarantee insurance polic) e5ceeds the a!ard price% such amount shall be ad3usted according to the a!ard price. Article 3$ 6here a supplier furnishes a price difference bond as the guarantee referred to in Article ,0 of the Act% the follo!ing re7uirements shall be follo!ed" #. !here the total tender price is abnormall) lo!% the amount of guarantee shall e7ual the difference bet!een the total tender price and 00: of the government estimate% or the difference bet!een the total tender price and 00: of the amount recommended b) a committee referred to in Article ,+ of the Act* . !here part of the tender price is abnormall) lo!% the amount of guarantee shall e7ual the difference bet!een the tender price for the part in 7uestion and /0: of the government estimate of such part. 4f there is no government estimate for the part in 7uestion% the budget amount or the amount recommended b) the committee shall be used instead* and 3. !here a supplier fails to deposit a price difference bond as re7uired% an entit)
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ma) decline to a!ard the contract to such supplier. A reasonable time.limit of not less than , da)s shall be prescribed for depositing a price difference bond. The re7uirements for performance bond as regards validit) period% contents% release or non.release% etc. shall appl) mutat#s mutand#s to the price difference bond. Article 31 6here an entit) notifies a supplier to ma$e improvement or replacement !ithin a time.limit pursuant to paragraph # of Article / of the Act% if the propert) for !hich the price has been paid has to be removed from the entit)&s premises% the entit) ma) re7uire the supplier to deposit a guarantee bond of the same value as that of the propert). 6here a propert) has to be removed from an entit)&s premises during the !arrant) period to ma$e improvement or replacement% the same shall appl). The re7uirements as regards performance bond shall appl) mutat#s mutand#s to the guarantee bond referred to in the preceding paragraph. Article 32 6here an entit) provides its propert) to a supplier for processing or maintenance% if the propert) has to be removed from the entit)&s premises% the entit) ma)% upon considering actual needs% re7uire the supplier to deposit a guarantee bond either of the same value as that of the propert) or of a fi5ed amount. The re7uirements as regards performance bond shall appl) mutat#s mutand#s to the guarantee bond referred to in the preceding paragraph. Article 33 8or procurement under the threshold for publication% an entit) ma) prescribe in the tender documentation that the performance bond or the !arrant) bond to be deposited b) the !inning tenderer ma) be substituted b) a 3oint and several guarantee for performance and compensation provided b) an other supplier !ho satisfies the 7ualification re7uirements for tenderers prescribed in the tender documentation. Article 33)1 8or procurement above the threshold for publication% an entit) ma) prescribe in the tender documentation that% !here the !inning tenderer submits a 3oint and several guarantee for performance and compensation provided b) an other supplier !ho satisfies the 7ualification re7uirements for tenderers prescribed in the tender documentation% the amount of performance bond or !arrant) bond pa)able ma) be reduced. The amount to be reduced referred to in the preceding paragraph% !hich ma) be either a fi5ed amount or proportion% shall be determined b) the entit) in the tender
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documentation. This amount shall be limited to a sum not e5ceeding ,0: of the performance bond or !arrant) bond. Article 33)2 6here an entit) permits a guarantee bond to be substituted b) a 3oint and several guarantee or reduced in amount% in accordance !ith the provisions of the t!o preceding Articles% the provisions regarding performance bond and !arrant) bond shall appl) mutat#s mutand#s to the time.limit to submit documents re7uired for the 3oint.and. several guarantee supplier* the entit) shall also prescribe in the tender documentation that the 3oint liabilit) of the supplier shall not be released progressivel) !ith the release of the guarantee bond in parts. 6here circumstances e5ist for not releasing guarantee bond% the !inning tenderer and the 3oint.and.several guarantee supplier shall ma$e a supplemental pa)ment to the entit) the amount of the guarantee bond not being released that e7uals the amount that had previousl) been substituted b) 3oint guarantee or reduced. >o!ever% if the circumstances allo! for the contract to be carried out b) the 3oint.and.several guarantee supplier and renders no need for the supplemental pa)ment% the entit) shall first notif) such supplier as regards performing the contract. Article 33)3 The supplier providing 3oint and several guarantee referred to in Articles 33 and 33.# shall be limited to one that is b) la! eligible for providing guarantee% that does not participate in tendering% and that does not fall under the circumstances set out in paragraph # of Article #03 of the Act% b) !hich it is prohibited from participating in tendering% or being a!arded or sub.contracted. Article 33)4 An entit) shall prescribe in the tender documentation that% in case an) supplier provides 3oint and several guarantee to more than one government procurement contracts at the same time% the ma5imum number of contracts for !hich it guarantees shall be limited to t!o. An entit) conducting procurement shall% if there e5ists the circumstance referred to in the preceding paragraph as regards the supplier providing 3oint and several guarantee% transmit relevant information of the 3oint.and.several guarantee supplier to the database designated b) the responsible entit) for public notice. Article 33)5 An entit) conducting procurement ma) prescribe in the tender documentation that% for outstanding suppliers% the amount of bid bond% performance bond or !arrant) bond to be deposited b) such suppliers ma) be reduced. The ma5imum amount of reduction shall be limited to ,0: of the total amount that has to be deposited originall). This provision shall not be retroactive to an) supplier that attains the aforesaid status
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after depositing the bonds. 6here the incentive period e5pired before the e5pir) of a bond% the reduced deposited amount needs not be deposited. The outstanding supplier referred in the preceding paragraph denotes an) supplier !ho has been evaluated as outstanding% based on provisions regarding incentives measure% incentive period and contract performance results b) the responsible entit) or the relevant central competent authorities in target enterprises covered b) la!s and regulations responsible b) the said entit) or authorities% provided that such evaluation has been recogni?ed and announced to the public via the designated database b) the responsible entit)% and that the incentive period is still valid. =ince such evaluation has been completed% the evaluation results and relevant data shall be reported to the responsible entit) !ithin three months. 4f the incentive period commencing from the publishing date of the notice e5ceeds t!o )ears% it shall be deemed as t!o )ears. 6here there is no incentive period% the status shall last for one )ear commencing from the publishing date of the notice on !hich the supplier is listed in the database as an outstanding supplier. An entit) ma) prescribe applicable sectors for eligible outstanding suppliers in the tender documentation for a specific procurement. As regards the circumstances in !hich an amount ma) be reduced as referred to in paragraph #% an entit) shall prescribe in the tender documentation that% !here there are circumstances in !hich a bid bond or guarantee bond shall not be released% the supplier shall ma$e a supplemental deposit that e7uals the reduced portion of the unreleased amount. The same shall appl) to a supplier !hose outstanding supplier status has been revo$ed b) the responsible entit) or the relevant central competent authorities in target enterprises% or to a supplier !ho has been published b) an) entit) on the Government Ga?ette pursuant to paragraph 3 of Article #0 of the Act% and is still under the effect of the period prescribed in paragraph # of Article #03 of the Act. 8or a supplier !ho has been evaluated as an outstanding supplier b) a municipal or count) (cit)) government% the provisions of paragraph #% and the preceding paragraph ma) appl) mutatis mutandis !hen such supplier participates in the procurement conducted b) that particular government. =uch outstanding suppliers shall neither be reported to the responsible entit)% nor be announced to the public via the designated database b) the responsible entit). 6here the amount of bid bond% performance bond or !arrant) bond ma) be reduced pursuant to other la!s% the la!s do not stipulate that the incentives shall be specified in the tender documentation% or to be announced to the public via the designated database b) the responsible entit)% those la!s shall appl). Chapter Article 34 The formats for bid bond% guarantee bond and other guarantees shall be prescribed b) the responsible entit). Article 35 *upple%ental Pro&isions

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These regulations shall ta$e effect from @a) /% #222. The amendments to these regulations shall ta$e effect from the date of promulgation.

Note' (n case o) d#scre"anc#es bet*een the +h#nese vers#on and th#s ,ngl#sh vers#on, the +h#nese vers#on shall "reva#l-

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