Article 1    These Operational Procedures are established to meet the needs of the authorities for the sale and assessment of property other than real estate that has lost its original use and is approved to be discarded but has a residual value.

Article 2    Unless otherwise stated by another legislation, the sale and assessment of property approved for scrapping shall be conducted by the property management authorities or the agency entrusted to handle the sale (hereinafter referred to as the executive agency) in accordance with these Operational Procedures. Funds gained from the sale shall be paid to the national (government) treasury in accordance with relevant regulations.

Article 3    The method of sale shall be based on the principle of public tendering. However, if the value of the scrapped property is less than ten thousand New Taiwan Dollars per piece (the same applies for the following), it may be sold by the executive agency through tender negotiation (comparison).

          The methods of public tendering are as follows:

          (1) Correspondence tender.

          (2) On-site outcry auction.

          (3) Organizing the tender on a tender website built and managed by government agencies.

         If no bids are received by mail by the time of bid opening, the executive authority may switch to on-site bidding on the spot.

         If a bid is not successful in a public auction, the executive agency may reopen the tender at the original reserve price or at a reduced price at its discretion.

Article 4    The process of sale and assessment is as below:

          (1) Determine the method of sale

          (2) Assessment: The executive agency shall proceed in the following manner:

              i. Self-assessment.

              ii. Consigned assessment.

          (3) Public tender announcement: The property sale by tender should be publicly announced ten days prior to the tender opening. In the case of re-opening and re-announcing tender that had been unsuccessful, the tender may be publicly announced seven days prior to the tender opening. However, for properties that require advertisement in advance or properties with higher residual value, the tendering period may be extended according to actual needs. The announcement of the tender sale shall be registered on the website of the executive agency in addition to the tender information, and the tender information shall be registered on websites of the relevant authorities.

           (4) Tender opening: The tender opening should be held by the supervisor of the executive agency or an authorized person.

           (5) The winner of the tender pays the purchase price.

           (6) Property handover.

Article 5    Regarding the content of the tender announcement, the version announced on the executive agency’s official website shall prevail, the content of the announcement shall include the following items:

           (1) Legal Basis: Subparagraph 1, Paragraph 1 of Article 66 of the National Public Use Property Management Handbook.

           (2) The target and quantity of the tender.

           (3) Reserve price of the tender and the amount of the security deposit.

           (4) Date and place of the tender opening.

           (5) Methods of tendering and tender opening.

          (6) Payment period and method of payment: The winner of the tender shall pay the entire price in one lump sum within the payment period stated in the notification sent by the executive agency.

          (7) Period and method of handover: The executive agency shall process the handover within three days after the winner of the tender has paid the entire price.

          (8) The time and place where the tender notice and tender sheet can be collected.

          (9) Other matters to be specified: Including the efficacy of the tender target, the handover under current conditions, etc.

Article 6    Tenderers participating in the tender shall comply with the following:

         (1) Fill out the tender sheet: List the tenderer, the target, and the tender amount (Natural persons shall specify his/her full name, national ID number, residential address, and telephone number. Legal persons should specify the name, address, telephone number, certification number of the identity document of the legal persons, and the full name of the statutory agent. The tender amount shall be written in complex Chinese numerals). However, those who adopt the on-site outcry auction method are exempted from filling out the tender sheet.

          (2) Payment of the security deposit: The amount of the security deposit shall be computed by taking 10% of the reserve price of the tender (counted to the nearest thousand, the security deposit is waived if it is less than one thousand dollars), and shall be paid in cash or by crossed check of Banks, Credit Cooperatives, Chunghwa Post Company Limited, Farmers' Associations, or Fishermen's Associations that have been approved by the government (crossed check with the financial institutions mentioned above as the issuer and payer), a certified check, or by postal money order issued and to be cashed by Chunghwa Post Company Limited.

         (3) The tenderer may attend the tender opening in person or, by submitting a written proxy, entrust another person to attend the tender opening and handle the subsequent related matters.

Article 7    In the event of public tender, the executive agency shall comply with the following:

           (1) For tenders undertaking the correspondence tender procedure:

                                 i. Attention shall be paid to the following matters during the review of the tender

                 (i) Whether both the tender sheet and the security deposit are completely submitted.

                 (ii) Whether both the tender sheet and the security deposit comply with the requirements.

             ii. If any of the following conditions are met, the tender will be invalid:

 (i) Between the tender sheet or the security deposit, one of the items is missing. Tender who had received a waiver for the security deposit do not need to comply with this requirement.

 (ii) The amount of the security deposit is insufficient or the bills do not comply with the provisions of the Paragraph 2 of the preceding Article.

 (iii) The tender amount stated in the tender sheet is modified without being certified with a stamp, or is illegible despite having been certified with a stamp, or is lower than the reserve price of the tender, or is not written in complex Chinese numerals.

 (iv) It is agreed by the presiding officer and the bid supervisor that the name of the tender target and the tenderer stated in the tender sheet is not identified by the presiding officer and the bid supervisor.

 (v) The format of the tender sheet does not comply with the format stipulated by the executive agency.

 (vi) If the payee of the tender margin instrument is not the name of the executive agency and has not been endorsed by the payee listed therein.         

            iii. Decision of the tender: Tenderer with the highest tender amount of a valid tender sheet shall be the winner of the tender, and tender with the second highest tender amount shall be the next winner. If there are two or more tenders with the same highest tender amount, the presiding officer shall draw lots to determine the winner and the next winner. If the next highest tender amount has two or more tenderers, the same shall apply.

           iv. In accordance with Paragraph 2 of Article 6, security deposit will be forfeited from the winner of the tender if their abandons the rights after winning the tender.

         v. The security deposit of the unsuccessful tenderers shall be refunded to the unsuccessful tenderers without interest. When two or more people joint-participate in a tender, the joint tenderer may issue a letter of proxy (with the same stamp as the one on the tender sheet) and entrust one of the tenderers to collect it on behalf of the rest on them.

          vi. After the decision of the tender is made, the tenderer shall approach the executive agency to obtain a payment letter and pay the entire price in one lump sum within the period notified by the executive agency (the security deposit paid shall be offset against the price). If the tenderer fails to pay the price after the deadline, he/she shall be deemed to have abandon the tender and the executive agency shall, in addition to forfeiting the security deposit payable in accordance with Paragraph 2 of Article 6, notify the next tenderer to pay the price in full within the period at the highest tender amount.

           vii. After the bidder has paid the price, the executive agency shall handover the property within three days.

       (2) For tenders undertaking the on-site outcry auction:

          i. The tenderer shall arrive at the executive agency thirty minutes before the opening of the tender, present his/her personal identification [for legal person (company) tender, one shall present the certification of the legal person and authorization letter], pay the security deposit, and then the proof of participation will be issued in the tender by the executive agency as well as the bidder card which provides the tenderer with the right to shout out their bid. Any late arrival, incompatibility of bidder's qualification, insufficient security deposit, or incompatibility of security deposit note specifications shall not be accepted.

          ii. Bid shouting and decision of the tender: The presiding officer will announce the subject of the tender and start shouting at the time of the opening of the tender, and the tenderer who has obtained the right to bid will put up his or her bidder card and shout their bid at the highest price. The presiding officer will recite the price for three times, if no higher price is offered by the third recitation, the presiding officer will announce that the bid is awarded to the tenderer; before the third recitation, if a bidder raises his or her bidder card and shouts for a higher price, the highest price will be recited again according to the procedure above until the announcement of the final tender amount of winner of the tender.

            iii. If the tenderer bids for a price lower than the reserve price, the bid shall be invalid.

         iv. After the decision of the tender, except for the successful tenderer, unsuccessful tenderers may collect their security deposit by presenting the proof of participation in the tender and the bidder card without interest.

          v. After the decision is made and the tender is awarded, the tenderer shall obtain the payment letter from the executive agency and pay the full price (the security deposit shall be credited against the price) within the period notified by the executive agency.

Article 8    The preceding three Articles concerning the matters to be brought to the attention of the tenderers shall be stated in the tender announcement.

Article 9   If the public tender sale is conducted on an auction website established and managed by a government agency, the relevant procedures of tendering, decision of the tender, payment of tender amount, and handover of the property shall be conducted in accordance with the provisions of these Operational Procedures, unless otherwise stipulated by the auction website.

Article 10  If the tender and award of contract procedures for public tender sales are not stipulated in these Operational Procedures, they shall be handled in accordance with the provisions of the Government Procurement Act.