Procurement:
Overview and general rules
Consultation seminar on the preparation of full
Application Form for LSP
6 December 2011, Tartu
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Procurement in grants
• Annex IV to be applied
• For what is not described in the Annex IV (detailed
procedures, tender documents):
• Either Beneficiary’s national (own) rules, but must
be in accordance with best international practice
(meaning that it should not be contradictory to EU
rules).
• Or Chapters 3(Service), 4(Supply), 5(Works) of PRAG
adjusted to Annex IV specific provisions
*** Member states public entities simply use national procedures;
except general principles (most economically advantageous), ENPI
CBC rule of nationality and origin and grounds for exclusion
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The nationality rule
Annex IV:
• Natural and legal persons
• Open to all Member states + states allowed by
Financial regulation (ENPI)
ENPI Regulation (Art. 21):
• Memeber states
• ENPI, IPA, EEA countries
• International organisations
The detailed list in Annex A2 to PRAG (General
Annexes) ”Eligibility – Programmes 2007-2013”, second
section on ENPI
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The nationality rule
• Do not apply to the experts proposed by
service providers taking part in tender
procedures or service contracts financed by the
grant
• If
implemented
organisation:
through
International
 + natural or legal persons eligible pursuant
to the rules of that organisation
 But: equal treatment to al donors to be
ensured
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The rule of origin
Annex IV:
• If the Regulation contains...
ENPI Regulation (Art. 21):
• Memeber states
• ENPI, IPA, EEA countries
• The detailed list in Annex A2 to PRAG (General
Annexes) ”Eligibility – Programmes 2007-2013”, second
section on ENPI
***If implemented through International organisation:
 + pursuant to the rules of that organisation
 But: equal treatment to all donors to be ensured
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The rule of origin – “origin”
Customs Code, Council Regulation 2913/1992, Art. 23
• Goods originating in a country shall be those wholly
obtained or produced in that country
• The expression ‘goods wholly obtained in a country’
means:
• (a) mineral products extracted within that country;
• (b) vegetable products harvested therein;
• [...]
• (j) goods which are produced therein exclusively
from goods referred to in subparagraphs (a) to (i) or
from their derivatives, at any stage of production
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The rule of origin – “origin”
Customs Code, Council Regulation 2913/1992,
Art. 24
• Goods whose production involved more than one
country shall be deemed to originate in the
country where they underwent their last,
substantial, economically justified processing
or working in an undertaking equipped for that
purpose and resulting in the manufacture of a
new product or representing an important stage
of manufacture
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The rule of origin – certificate
• The rule of origin applies to ALL supplies and materials
(ENPI Regulation)
The Certificate of origin:
• Contractor must present to the Beneficiary for equipment
and vehicles of a unit cost on purchase of more than €
5.000
• Made by the competent authorities of the country of origin
 In the Partner countries – Chambers of Commerce
• Must comply with Community legislation
 Art. 12 of Customs Code and Arts. 47-62 of
Implementing provisions
Code’s
 Annex 12 (model EU certificate)
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Nationality and origin:
exceptions
• By Derogation only (request to the Contracting
authority)
• Justifyed by:
• Unavailability of products and services in the
markets of the countries concerned
• For reasons of extreme urgency
• If the eligibility rule were to make the
realisation of a project, a programme or an
action impossible or exceedingly difficult
• ***NOT if a product of ineligible origin is
cheaper than the Community or local product
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Rule of origin: exceptions
Possibility of block derogation
• For some equipment which constantly poses a problem of origin
• After market research by JMA or several cases during
implementation
• Would apply to all the projects, but for a limited time (1 year
indicatively)
• Does not prevent the JMA from requesting some individual
derogations also for the equipment that has not been identified
in the block derogation
• The time needed for such a block derogation should be taken
into account not to hamper the projects’ implementation
• Procurement plan would also help to identify the equipment
for block derogation
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The nationality and origin rule
EU MSs
ENPI countries:
• Algeria, Armenia, Azerbaijan, Belarus, Egypt,
Georgia, Israel, Jordan, Lebanon, Libya, Moldova,
Morocco, Palestinian Authority of the West Bank and
Gaza Strip, Russian Federation, Syria, Tunisia,
Ukraine
IPA countries:
• Croatia, The former Yugoslav Republic of Macedonia,
Turkey, Albania, Bosnia, Montenegro, Serbia,
including Kosovo.
EEA countries:
•
Iceland, Liechtenstein, Norway
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Tender before contrat
signature
Art. 14 of General Conditions
• Tender procedures may be initiated before the Grant
is signed
• However, the contract with the selected tenderer
may be signed only when the Grant contract is
concluded
• Alternatively, the Beneficiary or partners
conclude a contract with a suspensive clause
may
!!! All secondary procurement rules have to be respected
• Thus, special attention should be put on informing
all those Beneficiaries at the earliest possible stage.
Further Information
JOINT TECHNICAL SECRETARIAT
Phone: +371 6750 9520
Fax: +371 6750 9523
E-mail: info@estlatrus.eu
Ausekļa Street 14 – 3rd Floor,
Riga, LV-1010, Latvia
Thank You for attention!
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