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Appendix 1: Exclusions and Exceptions


Mandatory Rules for Procurement by Departments

[ Last Updated 3 May 2006 ]


Exclusions From Mandatory Coverage of These Rules

1. In exercising their discretion not to apply these Rules to the following categories of procurement, departments must still, where appropriate and to the extent possible, have regard to the principles of the government procurement policy and good practice framework (paragraph 4 above).

2. Departments are not required to apply these Rules to:

  1. the purchase or acquisition of goods and services by a department from another department, except where tenders are called, in which case these Rules shall apply;
  2. non-contractual agreements, or any form of assistance to persons or governmental authorities, including foreign assistance, grants, loans, equity infusions, fiscal incentives, subsidies, guarantees, cooperative agreements, sponsorship arrangements and governmental provision of goods and services;
  3. purchases funded by international grants, loans or other assistance, where the provision of such assistance is subject to conditions inconsistent with these Rules;
  4. procurement of goods and services (including construction) outside the territory of New Zealand, for consumption outside the territory of New Zealand;
  5. acquisition of fiscal agency or depository management services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt;
  6. hiring of government employees;
  7. any procurement in respect of contracts for construction, refurbishment or furnishing of chanceries abroad; or
  8. procurement of public health, education and welfare services.13

General Exceptions

Security

3. Nothing in these Rules is to be construed as preventing the New Zealand Government from taking any action or not disclosing any information which it considers necessary for the protection of its essential security interests relating to the procurement of arms, ammunition or war materials, or to procurement indispensable for national security or for national defence purposes.

Other

4. Subject to the requirement that such measures14 are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail or a disguised restriction on trade between countries, nothing in these Rules is to be construed to prevent the New Zealand Government from adopting or maintaining measures:

  1. necessary to protect public morals, order or safety;
  2. necessary to protect human, animal or plant life or health (including environmental measures necessary to protect human, animal or plant life or health);
  3. necessary to protect intellectual property; or
  4. relating to goods or services of handicapped persons, of philanthropic or not for profit institutions, or of prison labour.

5. Nothing in these Rules is to be construed as requiring departments to disclose confidential information the disclosure of which would impede law enforcement or otherwise be contrary to the public interest.


13 Refers to procurement, for provision to the public, of services classified in WTO document MTN.GNS/W/120 under the sector headings "Educational Services", "Health Related and Social Services", and CPC 913 (Compulsory social security services).

14 measure includes any law, regulation, procedure, requirement or practice



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