12
ALRAQABA . ISSUE 16
imported products. The local products should
meet the required terms and specifications.
Several entities in the State of Kuwait organize
periodical promotion campaigns for marketing
and supporting local products. Some of these
entities are the Public Authority for Industry and
the union of Consumer Cooperative Societies
that facilitate local product marketing in their
central markets.
SAB Role in the Protection of Local
Products:
Based on SAB mission, as stated in SAB
establishment law No: 30 for the year 1964, SAB
is keen to apply all laws and decisions of control
including those that organize local product
protection.
Some of the top functions performed by SAB is
to verify the application of percentages provided
to the local product according to law No: 74 for
the year 2019 concerning public tenders that
require applying the provisions of priority to local
product.
The following is a simplified example of how
to calculate the priority to the local product
in tenders and practices of governments
entities:
Four tenderers applied for a tender to procure
furniture to the Ministry of Health. After opening
bidding envelops, the order was as follows:
The table above shows that tenderer A is the
lowest price and complies with terms and
specifications.
Tenderer
Bidding price
Country of
origin
Order
Offers assessment
A
K.D.230,000/-
China
First
Complied with terms and
specifications
B
K.D.240,000/-
Local product
Second
Complied with terms and
specifications
C
K.D.260,000/-
Malaysia
Third
Complied with terms and
specifications
D
K.D.270,000/-
France
Fourth
Complied with terms and
specifications
Therefore, it should be awarded the tender, but
based on the priority of 20% that is given to local
product according to law No: 49 for the year
2016 and amended by law No: 74 for the year
2019 concerning public tenders. Accordingly,
offers should be re-ordered after applying the
percentage of local products.
The priority of the local product is calculated
according to the following equation:
The offered price of the tenderers that present
imported products =
Offered price X 1.20
Accordingly, the prices comparison among
tenderers that present imported products shall
follow:
Tenderer (A) 230,000/- X 1.20 = K.D. 276,000/--
Tenderer (C) 260,000/- X 1.20 = K.D. 312,000/--
Tenderer (D) 270,000/- X 1.20= K.D. 324,000/-
Based on the above, the tenderers order shall be
as follows:
