1. The Laws | Taiwan | Public Procurement World

a. What is the applicable legislation?

In Taiwan, the applicable law regarding public procurement is the Government Procurement Law (GPL).

In addition, the World Trade Organization Government Procurement Committee adopted Taiwan's accession to the Agreement on Government Procurement (GPA) on 9 December 2008. After the internal process of administration and legislation, the GPA began to apply to Taiwan's public procurement on 15 July 2009. As such, both the GPL and the GPA apply to public procurement in Taiwan but the GPL is the main applicable law.

b. Does the legislation relate to or interact with any applicable trade agreement, such as the European Union procurement rules, WTO Government Procurement Agreement (GPA) or the procurement requirements of the North American Free Trade Agreement (“NAFTA”)?

The GPL was first drafted and promulgated in 1998 in reference to the GPA, which is a multilateral agreement regarding the public procurement market and can be regarded as a trade agreement among members.

c. What are the basic underlying principles of the legal framework?

According to Article 6 of the GPL, an entity should observe the principles of protecting public interests, fairness and reasonableness, and must not accord differential treatment to suppliers without due cause when conducting any procurement.

In addition, the preamble of the GPA provides that it is desirable to provide transparency of laws, regulations, procedures and practices regarding government procurement.

d. Is aerospace and defense procurement treated differently from other types of procurement?

No, aerospace procurement is not treated differently from other types of procurement under Article 104 of the GPL.

According to Article 104 of the GPL, procurement conducted by military entities shall generally follow the provisions of the GPL with certain exceptions due to the nature of the procurement. Article 104 of the GPL also provides that if the procurement is for weapons, ammunition, war supplies, or is related to national security or national defense and one of the following circumstances exists, the GPL does not apply:

where the nation is confronted with a war, in mobilization for a war, or in a war
where the procurement is confidential or a strictly confidential (Articles 27, 45 and 61 of the GPL may not apply)
where there is an emergency which may jeopardize an important military mission (Articles 26, 28, and 36 of the GPL may not apply)
where there is only one supplier invited to tender (the first sentence of paragraph 3 of Articles 26 of the GPL may not apply)

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