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Approved by decision of the Cabinet of Ministers of the Republic of Azerbaijan No. 165 of 28 October 2002 |
1. This Rule has been prepared in accordance with article 36.10 of the Law of the Republic of Azerbaijan “On public procurements” and establishes volume and application procedure of preferential corrections in favor of tender proposals on local goods (works and services) by state enterprises and organizations (administrations) and enterprises and organizations, state share in charter fund of which is 30 percent and more.
2. If at tenders conducted for procurement of goods, total volume of local raw materials, materials and local workforce used in manufacturing of goods offered by tenderers is more than 50 percent, preferential correction in favor of local goods can apply. Volume of preferential correction applied in favor of local goods, can be accepted in volume of up to 15 percents of proposed price of the same goods imported from abroad under conditions CIF/CIP of INCOTERMS rules.
In such cases volume of preferential correction shall be determined as follows:
| / | Total volume of local raw materials and materials and local workforce | Volume of applied preferential correction |
| 1 | From 50% to 60% | 5% |
| 2 | From 60% to 70% | 9% |
| 3 | From 70% to 80% | 12% |
| 4 | From 80% to 90% | 14% |
| 5 | From 90% to 100% | 15% |
3. If at tenders conducted for procurement of works, total volume of local raw materials, materials and local workforce used in performance of works offered by tenderers is more than 50 percent, preferential correction of up to 7,5 percent can apply in favor of such works.
In such cases volume of preferential correction shall be determined as follows:
| / | Total volume of local raw materials and materials and local workforce | Volume of applied preferential correction |
| 1 | From 50% to 75% | 6% |
| 2 | From 75% to 100% | 7,5% |
4. If at tenders conducted for provision of services, total volume of local raw materials, materials and local workforce used in provision of services offered by tenderers is more than 60 percent, preferential correction of up to 7,5 percent can apply in favor of such services.
In such cases volume of preferential correction shall be determined as follows:
| / | Total volume of local raw and materials and local workforce | Volume of applied preferential correction |
| 1 | From 60% to 80% | 6% |
| 2 | From 89% to 100% | 7,5% |
5. Preferential corrections in favor of tender proposals on local goods (works and services) shall apply as provided for in collection of basic tender conditions and at submission of justifying documents to procurement agency.