Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.

Hong Kong SAR Government Procurement

The Government Logistics Department (GLD) is the central purchasing, storage and supply organization for the Hong Kong Special Administrative Region, serving over 80 government departments and certain non-government public bodies. The GLD normally purchases by open tender, with decisions based on compliance with tender specifications, price competitiveness, back-up service and delivery. The GLD does not give preference to any particular source of supply from any country or organization.

In 2016, GLD spent US$14.98 million on American products (such as encryption solutions, x-ray checkers, spare parts for marine diesel engines, integrated high performance liquid chromatographic systems with ultra-high resolution mass analyzer etc.) winning approximately 4.4 percent of the total procurement contracts (about US$338.7 million). This was up from a total of approximately 2.13 percent of total procurement contracts in 2015.

Hong Kong joined the WTO Agreement on Government Procurement in May 1997. Tenders are now covered by the Agreement on Government Procurement of the World Trade Organization (WTO GPA). A revised GPA took effect on April 6, 2014 for Hong Kong, Canada, the European Union (EU), Iceland, Israel, Liechtenstein, Norway, Singapore, Taiwan and the United States. The revised GPA expanded the procurement opportunities covered under the GPA by US$80-100 billion per year, on top of the approximate US$1 to 1.5 trillion already covered under the last GPA. With the revised GPA, new work programs on small and medium enterprises (SMEs) and sustainable procurement has begun.

A Review Body on Bid Challenges has been set up by the government to handle challenges made against alleged breaches of the WTO GPA. Tender invitations are published in the Government of the Hong Kong Special Administrative Region Gazette. Tender notices are also published on the Internet in the GLD’s web site: http://www.gld.gov.hk/eng/services_2.htm. Bidders usually have at least three weeks to prepare their offers. Contract awards with the names of successful bidders and contract sums are published monthly in the Government Gazette and on the Internet.

For information about a subscription to the Government of the Hong Kong Special Administrative Region Gazette, contact:
Information Officer
Publications Sales Unit
Information Services Department
Room 626, 6/F, North Point Government Offices
333 Java Road, North Point
Hong Kong
Tel: (852) 2537-1910
Fax: (852) 2523-7195
Email: puborder@isd.gov.hk
Website: http://www.isd.gov.hk/eng/publication.htm

The GLD maintains lists of registered suppliers for issuing tender notifications. Any company not currently registered with the GLD wishing to be considered for inclusion in these lists may apply online through the Procurement and Contract Management System (PCMS) at http://www.gldpcms.gov.hk; or in writing to the Director of Government Logistics. Companies are required to provide basic information about their organization and the goods they offer, such as the business registration certificate, company profile, annual report and product catalogs. The GLD evaluates this information, and those companies that are found acceptable will be included on the lists. The ETB allows GLD-registered suppliers to download tender documents and to submit tender offers and related questions online.
Companies seeking more information on the GLD or enquiries relating to application for inclusion in the GLD Supplier Lists and general tendering matters are encouraged to contact:

Suppliers Officer (Technical Secretariat)
Government Logistics Department
9/F, North Point Government Offices
333 Java Road, North Point
Hong Kong
Tel: (852) 2231-5298
Fax: (852) 2807-2764
Email: hktender@gld.gov.hk
Website: http://www.gld.gov.hk

While the public procurement market is transparent and generally open to all comers, given its competitive nature and the recourse to national support by many third-country bidders, potential U.S. bidders on projects in Hong Kong (and, even more so, Macau) are encouraged to touch base with Commercial Service Hong Kong (or other Consulate offices) about their interests and the potential to apply for project advocacy support.

Macau SAR Government Procurement

The Macau SAR Government is gradually moving many of its procurement notices and tenders to the Internet. These notices are published in Chinese and Portuguese only. Public procurement processes in Macau are notably less transparent than those in Hong Kong. Instances of alleged official corruption and/or procedural irregularities have plagued several public projects in recent years. An extended dispute over the tender for water treatment services is currently in Macau courts. U.S. firms are encouraged to contact the Commercial Service for counseling and/or formal advocacy support in connection with their public tender interests.
For tender information on Macau SAR Government website, visit:
http://portal.gov.mo/web/guest/citizen, click on "Proclamation" on the menu, and click on “Gov. Tender.”

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.