1. For any particular Party whose threshold value listed for a certain coverage is higher than that listed by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, this Agreement applies only to those procurements above the higher one threshold value for such particular Party for the relevant coverage.  (This note does not apply to bidders of the United States and Israel competing on goods, services and construction contracts tendered by entities identified in Annex 2.)

2. Until such time as the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has accepted that the Parties concerned provide access for the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu suppliers and service providers to their own markets, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu shall not extend the benefits of this Agreement to suppliers and service providers of the Parties concerned.  A service listed in Annex 4 or construction service in Annex 5 is covered with respect to a particular Party only to the extent that such Party has provided reciprocal access to that service.

3. This Agreement shall not apply to any procurement made by a covered entity on behalf of a non-covered entity.

4. Where a contract to be awarded by an entity is not covered by this Agreement, this Agreement shall not be construed to cover any goods or service component of that contract.

5. This Agreement shall not apply to contracts:

 - for the acquisition or rental of land, existing buildings, other immovable property or concerning rights thereon;

 - for the acquisition, development, production or co-production of programme materials by broadcasters and contracts for broadcasting time;

 - contract of employment.

6. This Agreement shall not apply to:

 - contracts awarded under an international agreement and intended for the joint implementation or exploitation of a project;

 - contracts awarded under the particular procedure of an international organization;

 - procurement made with a view to resale or to using in the production of supplies or services for sale;

 - procurement of agricultural products made in furtherance of agricultural support programmes and human feeding programmes;

 - procurement of the following goods and services (including construction) relating to the electricity and transport projects.
 
Exclusions regarding electricity (goods)

HS 8402 Steam or other vapour generating boilers
HS 8404 Auxiliary plant for use with boilers
HS 8410 Hydraulic turbines, water wheels, and regulators
HS 8501 Electric motors and generators
HS 8502 Electric generating sets
HS 8504 Electrical transformers and converters
HS 8532 Power capacitors
HS 8535 Electrical switches, breakers, switch-gears (for a voltage exceeding 1,000 volts)
HS 8536 Electrical switches, breakers, switch-gears (for a voltage not exceeding 1,000 volts)
HS 8537 switch boards, controller panels
HS 8544 Power cables (including optical fibre cables)
HS 9028 Electricity supply meter

- Notwithstanding the above, this Agreement shall apply to the procurement of HS codes 8402, 8404, 8410, 8501 (electric motors with capacity of 22 megawatts or greater, electric generators with capacity of 50 megawatts or greater)*, 850164, 8502, 8504 (electrical transformers and static converters, with capacity of 1 to 600 megawatts)*, and 8544 (cable related to telecommunications applications) for the goods and suppliers of the United States;  the European Communities;  Japan;  Switzerland;  Canada;  Norway;  Iceland;  Hong Kong, China;  Singapore;  and Israel.

 * Coverage to be effective two years from the date of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's accession to the WTO.

- Notwithstanding the above, this Agreement shall apply to the procurement of HS codes 8402, 8404, 8410, 850164 and 8502 for the goods and suppliers of Korea.

Exclusions regarding electricity (services and constructions)

CPC 51340 Power transmission line construction work
CPC 51360 Power plant and substation construction work
CPC 51649 Power transmission and distribution automation system construction work
CPC 52262 Power plant construction engineering work
CPC 86724 Power transmission, distribution and substation engineering design services
CPC 86725 Power plant engineering design services)
CPC 86726 Power transmission and distribution automation system engineering design services
CPC 86739 Integrated engineering services for power transmission and distribution turnkey projects

- Notwithstanding the above, this Agreement shall apply to the procurement of CPC codes 51340, 51360 and 51649 for the service providers of Korea;  the European Communities;  Japan;  the United States;  Switzerland;  Canada;  Norway;  Iceland;  Hong Kong, China;  Singapore;  and Israel.
 

- Notwithstanding the above, this Agreement shall apply to the procurement of CPC code 52262 for the service providers of Korea;  the European Communities;  the United States;  Switzerland;  Canada;  Norway;  Iceland;  Hong Kong, China;  Singapore;  and Israel.

- Notwithstanding the above, this Agreement shall apply to the procurement of CPC codes 86724, 86725, 86726 and 86739 for the services providers of the United States;  Canada;  Korea;  the European Communities;  Japan;  Switzerland;  Norway;  Iceland;  Hong Kong, China;  Singapore;  and Israel.

Exclusions regarding transport

HS 8601 Rail locomotives, powered from an external source of electricity or by electric accumulators
HS 8603 Self-propelled railway or trainway, coaches, vans and trucks, other than those of heading.
HS 8605 Railway or trainway passenger coaches, not self-propelled, luggage van, post office coaches and other special purpose railway or trainway coaches, not self-propelled
HS 8607 Parts of railway or trainway locomotives or rolling stock
HS 8608 Railway or trainway track fixtures and fittings, mechanical (including electro-mechanical) signalling, safety or traffic control equipment for railways, roads, inland waterways, parking facility, port installations or airfields, parts of the foregoing

- Notwithstanding the above, this Agreement shall apply to the procurement of HS code 8608 for the goods and suppliers of the United States;  Canada;  the European Communities;  Japan;  Switzerland;  Norway;  Iceland;  Hong Kong, China;  Singapore;  and Israel, effective two years from the date of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's accession to the WTO.

- Notwithstanding the above, this Agreement shall apply to the procurement of HS code 8601, 8603, 8605 and 8607 for the goods and suppliers of Canada;  the European Communities;  Japan;  Norway;  Iceland;  Hong Kong, China;  Singapore;  and Israel.  For a period of 10 years from the date of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's accession to the WTO, up to 50 per cent of the procurement amount can be used by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu for offset purposes.

7. Procurement does not include the acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt.

8. Procurement in terms of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's coverage does not include non-contractual agreements or any form of government assistance, including, but not limited to, cooperative agreements, grants, loans, guarantees, fiscal incentives, and governmental provision of goods and services to persons or governmental authorities not specifically covered under the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu's Annexes to this Agreement.

9. The provision of services, including construction services, in the context of procurement procedures according to this Agreement is subject to the conditions and qualifications for market access and national treatment as will be required by the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu in conformity with commitments under GATS.

10. When a specific procurement may impair important national policy objectives, the Government of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu may consider it necessary in particular procurement cases to deviate from the principle of national treatment of the Agreement.  A decision to this effect will be made by the Executive Yuan.  This Note shall only be applied to Finland, Norway and Sweden under the condition that they maintain the similar note to their Annexes.

11. This Agreement shall not apply to procurements in respect of national security exceptions including procurements made in support of safeguarding nuclear materials, radwaste management, or technology.

12. The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu will accede to the Agreement at the time it accedes to the WTO.