ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of May 28, 2013 No. 295

About approval of the Methodical instruction about provision of privileges to internal suppliers (contractors)

According to Item 5 of article 3 of the Law of the Kyrgyz Republic "About public procurements", for the purpose of provision of privileges to internal suppliers in case of assessment of tenders on goods and the works performed in the territory of the Kyrgyz Republic by internal suppliers (contractors), the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Methodical instruction about provision of privileges to internal suppliers (contractors).

2. This resolution becomes effective from the date of official publication.

Approved by the Order of the Government of the Kyrgyz Republic of May 28, 2013 No. 295

The methodical instruction about provision of privileges to internal suppliers (contractors)

The methodical instruction about provision of privileges to internal suppliers (contractors) (further - the Methodical instruction) is developed for the purpose of implementation of article 3 of the Law of the Kyrgyz Republic "About public procurements" and determines procedure for granting of privileges to internal suppliers (contractors) participating in the procedure of public procurements. The methodical instruction is intended for application by the tender commission of the buying organization.

1. General provisions

1. The buying organization in case of assessment of tenders can provide privileges for suggested price to 20 percent of the goods made in the territory of the Kyrgyz Republic in comparison with tenders on goods of foreign production, and also for works to 10 percent on proposals of internal contractors in comparison with offers of foreign firms, on condition of use of local manpower, and also at least 30 percent of local raw materials and materials.

2. In case of application of privileges tender documents shall contain the sizes of privileges, and also the requirement about provision by participants of the documents allowing to establish the acceptability of application of privileges to the tender. Availability only of one registration for the territories of the Kyrgyz Republic of the producer or the supplier/contractor is not the basis for receipt of such privilege.

3. In case of provision of privileges the buying organization shall provide the size of privileges in tender documents and in the announcement of the forthcoming biddings to specify information on provision of privileges for goods of national production or internal contractors. In subsequent the made statement for provision of privileges and the size of privileges to change is not subject.

4. By provision of privileges to internal suppliers or contractors if the international treaty which became effective in the procedure established by the law which participant is the Kyrgyz Republic establishes other rules, the buying organization shall be guided by rules of the international treaty in case of determination:

a) categories of deliveries of goods and performance of works to which privileges to internal suppliers (contractors) extend;

b) procedures of provision of privileges to internal suppliers or contractors when implementing the public procurements provided by Items 1 and 2 of article 3 of the Law of the Kyrgyz Republic "About public procurements".

5. The procedure of application of privileges should be carried out only after carrying out the evaluation stages by determination of the tender with the smallest estimated cost which are carried out according to the Instruction on assessment of tenders approved by authorized state body in the sphere of public procurements.

6. If during assessment of tenders, before application of privileges, the internal supplier (contractor) is determined, then in application of this technique need disappears.

7. If during provisional estimate of tenders the winner determines the foreign company, then on condition of accomplishment of the requirement of Item 3 of this Methodical instruction, final assessment and comparison of tenders are performed according to Sections 2 or 3 of this Methodical instruction.

8. Comparison of tenders for provision of privileges is possible only at stage of consideration of the prices offered in tenders. The procedure of application of privileges shall be applied within tender effective period.

2. Privilege for goods of national production

9. In tender documents it is necessary to specify the following:

a) for internal suppliers - the list of documents which should be provided for the proof of goods origin;

b) for foreign suppliers - the goods price on the terms of CIP, i.e. the foreign supplier pays transportation expenses for delivery and goods insurance to the specified destination (The Incoterms 2012 - the international rules on interpretation of the most widely used trade terms of foreign trade).

10. In case of assessment and comparison of tenders the buying organization shall apply the following technique of application of privileges:

1) for the purpose of comparison tenders of participants needs to be broken into two groups:

a) group A: tenders on the goods made in the Kyrgyz Republic;

b) group B: tenders on goods of foreign production;

2) goods price in proposals of group A shall include all duties and taxes which are paid or are subject to payment. The price for goods of the offer from group B based on conditions of CIP that means exception of the customs payments and other import taxes which are already paid or subject to payment;

3) to determine the tender with the smallest estimated cost, at the first stage all tenders are compared in the group. For example, tenders, from group A (domestic goods) and groups B (goods of foreign production). Then tenders are compared with the smallest estimated cost of each group with each other. If as a result of comparison it is determined that the tender from group A (domestic goods) has the smallest estimated cost, than the tender from group B (goods of foreign production), the tender from group A (domestic goods) is recognized the winner, in this case there is no need for application of the actions specified in appendix 1;

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