The requirement for the local content in certain groups of goods during public procurement will increase from 10% to 15% from January 1, 2023, MP Dmytro Kysylevsky has recalled.
“Let me remind the participants and customers of public procurement that from January 1, 2023, the requirement for the local content will increase from 10% to 15% for certain groups of goods: such as urban and railway transport, municipal and special equipment, power equipment, etc,” Kysylevsky wrote on Facebook on Monday.
He said that the register of goods with a designated degree of the local content of the Ministry of Economy has been kept since August 2022 and said that in four months more than 250 enterprises have registered about 2,000 goods, including 750 with a degree of the local content of more than 40% and only 400 – less than 15% .
“There is significant competition in some categories of product groups. In particular, 58 enterprises registered diesel generators, 24 companies registered pumps and compressors, and more than 30 enterprises registered special trucks,” Kysylevsky wrote.
As reported, the requirement for the local content was introduced by amendments to the law on public procurement, which the Verkhovna Rada approved in December 2021. They became effective on July 14, 2022 after the approval of by-laws by the Cabinet of Ministers.
The local content requirement will increase by 5% each year until reaching 40% in 2028. It does not apply to countries that have ratified the GPA on procurement under the WTO, in particular the United States and EU countries.
