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With a view to regulating the purchases of goods from non-lending countries (referring to goods from third countries and those provided by Chinese suppliers) by using loans granted by foreign governments (excluding the purchases through international bidding or projects of using Yen loans), and further strengthening the management of purchases and payments by using loans granted by foreign governments, you are hereby notified of the following issues: 1. The project entities and purchasing companies shall purchase goods by way of bidding according to the lending countries' requirements for the purchase ratios (see Annex 1). 2. The project entities and the purchasing companies shall formulate bid documents according to the purchasing list approved by the domestic administrative departments and those of the lending countries. 3. A contract concluded between a purchasing company and a bid winner shall contain a list of goods from non-lending countries (including names, specifications and unit prices of goods) by using loans granted by foreign governments, and shall have clear stipulations on the specifications and technical compatibility of the goods from different sources. 4. When a purchasing company submits a bid evaluation and contract report to the Ministry of Finance, it shall enclose the Chinese-English "Detailed Purchasing List from the Non-lending Countries" (see Annex 2). 5. When a purchasing company and the bid winner stipulate the payment terms in a contract, if the payments for the goods from non-lending countries is involved, the bid winner may, according to the different delivery forms, be required to offer the relevant documents, which shall include: (1) the marine bill of lading, road waybills and air waybills of goods from non-lending countries, or goods receipts jointly signed by the bid winner and the project entity; and (2) the invoices and packing lists issued by the bid winner for provision of goods; if the goods are supplied from within China, the packing lists issued by the domestic suppliers (manufacturers) shall also be provided. 6. A domestic on-lending bank shall specify the procedures for the drawing of the loan in the financial agreement, requiring the lending country to pay the money directly to the supplier within the specified time limit after receiving authorization from the on-lending bank. 7. No project entity may require or require via the purchasing company, for any excuses, the bid winner or its agent to repay the loan in cash to the project entity, any other domestic enterprise, institution or individual. 8. Upon mutual agreement of the Ministry of Finance and the administrative department of a lending country, the management and payment form concerning using part of a loan as domestic auxiliary fund for domestic construction shall be separately notified. 9. The present Notice shall come into force as of the date of promulgation. All pertinent purchasing companies, on-lending banks and project entities shall deal with the relevant matters in strict compliance with the requirements in the present Notice. The Notice on Regulating the Purchases of Domestic Equipment by Using Loans Granted by Governments of Countries in North Europe (No. 138 (1999) of the Ministry of Finance) issued by the Ministry of Finance in June, 1996 shall be simultaneously abolished. Annexes: 1. The Ratios of Provision of Goods under Projects of Loans by Foreign Governments (Notes) 2. Detailed Purchasing List from the Non-lending Countries ANNEX 1. THE RATIOS OF PROVISION OF GOODS UNDER PROJECTS OF LOANS BY FOREIGN GOVERNMENTS (NOTES) Order 1 Country: Germany Minimum Ratio of Provision of Goods by Lending Countries (%): 50 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 50 Notes: International bidding shall be adopted for transport projects, small and medium-sized credit projects Order 2 Country: Spain Minimum Ratio of Provision of Goods by Lending Countries (%): Please refer to the note Maximum Ratio of Provision of Goods by China and Third Countries (%) : Please refer to the note Notes: The goods provided by China and third countries shall not exceed 15% of the export volume of Spain Order 3 Country: France Minimum Ratio of Provision of Goods by Lending Countries (%): 85 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 15 Notes: Order 4 Country: Italy Minimum Ratio of Provision of Goods by Lending Countries (%): 75 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 25 Notes: Order 5 Country: Canada Minimum Ratio of Provision of Goods by Lending Countries (%):100 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 0 Notes: The ratio confirmed by the administrative department of Canada when examining the bid documents shall be followed Order 6 Country: Netherlands Minimum Ratio of Provision of Goods by Lending Countries (%): 50 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 50 Notes: Order 7 Country: Belgium Minimum Ratio of Provision of Goods by Lending Countries (%): 70 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 25 Notes: Order 8 Country: Austria Minimum Ratio of Provision of Goods by Lending Countries (%): 75 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 25 Notes: Order 9 Country: Israel Minimum Ratio of Provision of Goods by Lending Countries (%): 60 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 40 Notes: The ratio of provision of goods by non-lending countries for projects of communication, environmental protection, education and agricultural sciences and technologies shall not exceed 50%. Order 10 Country: Korea Minimum Ratio of Provision of Goods by Lending Countries (%): 70 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 30 Notes: Order 11 Country: Poland Minimum Ratio of Provision of Goods by Lending Countries (%): 80 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 20 Notes: Order 12 Country: Switzerland Minimum Ratio of Provision of Goods by Lending Countries (%): 50 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 50 Notes: Order 13 Country: Denmark Minimum Ratio of Provision of Goods by Lending Countries (%): 50 Maximum Ratio of Provision of Goods by China and Third Countries (%): 50 Notes: Order 14 Country: Finland Minimum Ratio of Provision of Goods by Lending Countries (%): 50 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 50 Notes: Order 15 Country: Nordic Investment Bank Minimum Ratio of Provision of Goods by Lending Countries (%): 70 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 30 Notes: Order 16 Country: Sweden Minimum Ratio of Provision of Goods by Lending Countries (%): 70 Maximum Ratio of Provision of Goods by China and Third Countries (%) : 30 Notes: Order 17 Country: Norway Minimum Ratio of Provision of Goods by Lending Countries (%):International Bidding Maximum Ratio of Provision of Goods by China and Third Countries (%) : Notes: Order 18 Country: Kuwait Minimum Ratio of Provision of Goods by Lending Countries (%):International Bidding Maximum Ratio of Provision of Goods by China and Third Countries (%) : Notes: Order 19 Country: Saudi Arabia Minimum Ratio of Provision of Goods by Lending Countries (%):International Bidding Maximum Ratio of Provision of Goods by China and Third Countries (%) : Notes: Notes: The ratios listed herein are ratios specified in the documents signed by this Ministry and the administrative departments of the lending countries or ratios usually adopted by the lending countries. Where a lending country has a special requirement for the purchase rate of a project raised by China, such requirement shall be followed. Annex 2. DETAILED PURCHASING LIST FROM THE NON-LENDING COUNTRIES Name of Project£º Source of Loan£º Contract Value£º Signing Date of the Contract£º Item Name of Equipment Qty Amount Percentage of Total Contract value Origin Total Signature (Seal) of Person-in-charge of the Purchasing Company |
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