Interim Provisions on the Prohibition against Acts of Collusion
in the Invitation and Submission of Tenders
Promulgated by Order No. 82 of the State Administration
of Industry and Commerce on January 6, 1998

Article 1

In order to prohibit acts of collusion in the invitation and submission of tenders, safeguard fair competition, protect interests of the social public and lawful rights and interests of the operators, and according to the relevant provisions of the Law of the People's Republic of China for Countering Unfair Competition (hereinafter referred to as the Law for Countering Unfair Competition), the Provisions are formulated.

Article 2

The Provisions shall apply to acts of collusion in the invitation and submission of tenders in the areas such as the contracting of construction projects, purchase of complete sets of equipment or other goods, contracting operation and leasing operation of enterprises, transfer of the land use right and rent of business places.

"The invitation of tenders" in the Provisions refers to the acts that the party, who invites tenders, for the purchase of goods or entrusting others with certain work, in the form of issuing the tenders offer notice or paper for the invitation of tenders, publishes specified standards and conditions to invite the tenderer to make tenders publicly or in writing, and selects the winner of the tender from among tenderers. The party performing acts for the invitation of tenders shall be the party inviting tenders , including the sponsor of the project and the intermediate organization who acts as an agent in the invitation of tenders.

"The submission of the tenders" in the Provisions refers to the acts that the tenderers offer their price and corresponding conditions according to the requirements stated in documents for the invitation of tenders. The parties performing the acts of tenders shall be the tenderers.

"The collusion in the invitation and submission of tenders" in the Provisions refers to acts that the party inviting tenders and the tenderer collaborate with each other or the tenderers collaborate with each other on matters of the invitation and submission of tenders by means of unfair competition, so as to push out their competitors or damage the interests of the party inviting tenders.

Article 3

The tenderer shall not exercise the following acts of collusion in violation of the provision of paragraph 1of Article 2:

1. Tenderers reach agreement among themselves, working together to force up or down the price;
   
   
2. Tenderers reach agreement among themselves so that they may win the tenders in turn at a high price or low price;
   
   
3. Tenderers conduct internal competition in advance among themselves for the price, internally select a winner who then participates in the submission of tenders;
   
   
4. Other acts of collusion in the submission of tenders exercised by tenderers among themselves.

Article 4

The tenderers and the party inviting tenders shall not collaborate with each other and exercise the following acts of unfair competition for pushing out competitors in violation of the provision of paragraph 2 of Article 15 of the Law for Countering Unfair Competition :

1. Before publicly opening the tenders, the party inviting tenders opens tenders papers and makes known to other tenderers about the situation of the submission of tenders, or assists other tenderers to withdraw and change their tenders papers and prices;
   
   
2. The party inviting tenderers lets out the tenders base to tenderers;
   
   
3. The party inviting tenders and a tenderer reach agreement that they force the tenders price up or down at the time of inviting or submitting tenders and then give extra compensation to the party inviting tenders or the tenderer when the tender is won;
   
   
4. The party inviting tenders selects the winner of the tenders according to its/his internal decision made in advance on who will be the winner of the tenders;
   
   
5. Other acts of collusion between the party inviting tenders and the tenderer.

Article 5

In the case of collaboration in the invitation and submission of tenders in violation of provisions of Articles 3 and 4, the successful bid shall be null and void. The authorities for the administration of industry and commerce may impose on a fine of more than RMB���10,000 and less than RMB���200,000 according to circumstances in accordance with the provision of Article 27 of the Law for Countering Unfair Competition. If the case constitutes a crime, it shall be transferred to judicial organs for the prosecution of criminal responsibilities.

Article 6

The collusion in the invitation and submission of tenders shall be a joint offence. All offenders participating in the collusion in the invitation and submission of tenders shall be severally dealt with administrative punishments according to circumstances in accordance with the penalty range stipulated for in Article 5 of the Provisions.

Article 7

Where parties inviting tenders or tenderers collaborate with each other in the invitation or submission of tenders and, at the same time, commit acts against administrative regulations on industry and commerce such as commercial bribery, infringement on business secrets, the acts of collusion in the invitation and submission of tenders shall be punished in conjunction with other offensive acts.

Article 8

The Provisions shall enter into force as of the date of promulgation.