Article 33-6
When conducting a procurement not covered by any treaty or agreement to which this nation is a party, an entity may prescribe in the tender documentation that, for globalized suppliers, the amount of bid bond, performance bond or warranty bond to be deposited by such suppliers may be reduced. The maximum amount of reduction shall be limited to 30% of the total amount that has to be deposited originally, and is additional to the reduction amount referred to in the preceding Article. This provision shall not be retroactive to any supplier that attains the aforesaid status after depositing the bonds. Where the incentive period ends before the expiry of a bond, the reduced amount needs not be deposited.
The globalized supplier referred to in the preceding paragraph means any local supplier whose overseas contract value accumulated is not less than the threshold for the central government entities of this nation under the Agreement on Government Procurement (GPA) of the World Trade Organization (WTO), and the contract value has been ratified by the relevant central competent authorities and published in a database designated by the responsible entity in one year after the award of contract, and that the incentive period is still valid. The incentive period shall be one year commencing from the publishing date of the information to which the supplier is listed in the database as an globalized supplier.
As regards the circumstances in which an amount may be reduced as referred to in paragraph 1, an entity shall prescribe in the tender documentation that, where there are circumstances in which a bid bond or guarantee bond shall not be released, the supplier shall make a supplemental deposit that equals the reduced portion of the unreleased amount. The same shall apply to a supplier whose globalized supplier status has been revoked by the relevant central competent authorities due to significant deficiencies in overseas contract performance, or to a supplier who has been published by any entity on the Government Gazette pursuant to paragraph 3 of Article 102 of the Act, and is still within the period prescribed in paragraph 1 of Article 103 of the Act.

Article 20
The circumstances in which a performance bond and the accrued interest thereon shall not be released shall be prescribed by an entity in the tender documentation upon considering the characteristics and actual needs of the procurement.
An entity may prescribe in the tender documentation the circumstances in which a part or the whole amount of performance bond (including the accrued interest thereon, applicable hereinafter) deposited by a supplier shall not be released as follows:
1. where one of the circumstances provided in subparagraphs 3 to 5, or 7 of paragraph 1 of Article 50 of the Act occurs, and that claim for damages may be sought after pursuant to the first part of paragraph 2 of the same Article, an amount of the bond that equals the amount of the claim shall not be released;
2. where the supplier is in breach of Article 65 of the Act by assigning the contract to other parties, the whole amount of the bond shall not be released;
3. where the supplier has reduced the work or materials without prior approval, and that the amount of the work or materials thus reduced plus the losses thus incurred cannot be completely set off against the contract value payable, an amount of the bond equal to the insufficient amount shall not be released;
4. where part of the contract is terminated or rescinded due to causes attributable to the supplier, an amount of the bond calculated based on the proportion of the contract value accounted for by the value of such part shall not be released; where the whole contract is terminated or rescinded, the whole amount of the bond shall not be released;
5. where the subject matter does not pass inspection or acceptance and the supplier fails to take actions as required within the time-limit specified in the notice, and that the amount of the non-conforming parts and the losses thus incurred, plus any additional expenses or punitive penalties cannot be completely set off against the contract value payable, an amount of the bond equal to the insufficient amount shall not be released;
6. where the supplier fails to perform the whole or part of the contract within the time-limit prescribed in the contract or an agreed extension thereof by the entity, and that the amount of delay penalty cannot be completely set off against the contract value payable, an amount of the bond equal to the insufficient amount shall not be released;
7. where the supplier is required to return an amount of the contract value paid but fails to do so, the like amount of the bond shall not be released;
8. where the supplier fails to extend the validity period of the bond as prescribed by the contract, the amount that requires extension shall not be released; and
9. any other circumstances attributable to the supplier, which results in a loss suffered by the entity, and that the supplier fails to pay the compensation which it is liable, the amount of the bond equal to the compensation payable shall not be released;
The performance bond referred to in the preceding paragraph that shall not be released may, for the circumstances in which release in parts is required by the contract, be the part that has not been released; the accrued interest that shall not be released shall be the interest on such bond accrued after the bond has been deposited.
Where two or more circumstances referred to in paragraph 2 occur in one contract, these shall be applied separately. However, the summed amount shall, where it exceeds the total amount of the performance bond, be limited to the total amount.