LEGAL ALERT: International Procurement Instrument (IPI) – what is it and how could it affect participation of non-EU contractors in EU-tenders?

• On 23^rdJune 2022 Regulation 2022/1031 on International Procurement Instrument (IPI) – reciprocity in the treatment of EU contractors participating in tenders from non-EU countries was adopted.
• The Regulation 2022/1031 enables the Commission to undertake investigation into a third-country which uses practices against EU contractors restricting their access to the public procurement or concession markets.
• If such practices are being used, the Commission can impose IPI measures to restrict the access of third-country contractors to EU public procurements.
• This means that the contractors from such third-country may be even excluded from public procurements conducted by EU countries or less points may be awarded to a bid submitted by such contractors.
• The IPI measure will affect as well the possibility to subcontract the part of public procurement to entities from a third-country on which such measure is imposed.
• IPI measure will apply only to the procedures initiated after the entry into force of such measure.
• IPI may apply not only to contractors from third-countries but also to goods and services.
• The Commission each time will define the type and the minimum value of procurements that will be covered by the IPI measure. That threshold cannot be less than EUR 15.000.000 (for works) and EUR 5.000.000 (for supplies and services).
• The exceptions to the application of IPI measure to procurements are very limited.
• As a rule, IPI measure should expire after 5 years.
• The Regulation 2022/1031 will enter into force on 29^thAugust 2022.

If you have any further questions regarding IPI, we remain at your disposal.