Quick FactsCooperative innovation procurement refers to the procurement method in which the purchaser invites suppliers to cooperate in R&D, share R&D risks, and purchase innovative products that have been successfully developed according to the quantity or amount agreed in the R&D contract. Innovative products shall have substantial technological innovation, including new technical principles, technical ideas or technical methods. Cooperative innovation procurement shall establish a reasonable risk sharing and incentive mechanism, encourage the active participation of state-owned enterprises, private enterprises, foreign-invested enterprises, institutions of higher learning, scientific research institutions and other suppliers with research and development capabilities, give full play to the radiation effect of financial funds on the research and development of applied technology in the whole society, and promote scientific and technological innovation. In cooperative innovation procurement, except for procurement from a limited scope or a single supplier, the purchaser shall determine the R&D supplier through open competition. Full text of the document Notice on the issuance of the "Interim Measures for the Management of Government Procurement Cooperation and Innovative Procurement Methods" Cai Ku [2024] No. 13 All central budget units, finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan, and the Finance Bureau of the Xinjiang Production and Construction Corps: In order to implement the "Plan for Deepening the Reform of the Government Procurement System" and improve the system of government procurement to support scientific and technological innovation, the Ministry of Finance has formulated the "Interim Measures for the Management of Government Procurement Cooperation and Innovative Procurement Methods", which are hereby issued to you, please follow them. Attachment: Interim Measures for the Management of Cooperative and Innovative Procurement Methods in Government Procurement Annex: Interim Measures for the Management of Cooperative and Innovative Procurement Methods in Government Procurement Annex: Chapter 1 of the Interim Measures for the Management of Cooperative and Innovative Procurement Methods in Government Procurement Article 1 These Measures are formulated in accordance with the "Government Procurement Law of the People's Republic of China" and the "Science and Technology Progress Law of the People's Republic of China" and other relevant laws in order to implement the relevant requirements of the Party Central Committee and the State Council on accelerating the implementation of the innovation-driven development strategy and support the application of scientific and technological innovation. Article 2 Cooperative innovation procurement refers to the procurement method in which the purchaser invites suppliers to cooperate in R&D, share R&D risks, and purchase innovative products that have been successfully developed according to the quantity or amount agreed in the R&D contract. The cooperative innovation procurement method is divided into two stages: ordering and first purchase. Ordering refers to the activities in which the purchaser proposes R&D goals, cooperates with suppliers to develop innovative products, and shares R&D risks. The first purchase refers to the purchaser's purchase of a certain quantity or a certain amount of corresponding products in accordance with the R&D contract for the successfully developed innovative products. The term "innovative products" as used in the preceding paragraph shall have substantial technological innovation and include new technical principles, technical ideas, or technical methods. If there is no substantive technological innovation in the modification of existing products and the verification, testing and use of existing technological achievements, it does not belong to the scope of innovative products provided for in these measures. Article 3 If the procurement project conforms to the national development plan for science and technology and related industries, is conducive to the implementation of major national strategic objectives and tasks, and has any of the following circumstances, it may be procured by means of cooperative and innovative procurement: (1) the existing products or technologies in the market cannot meet the requirements and need to make technological breakthroughs; (2) based on the research and development of innovative products, the formation of a new paradigm or new solution, can significantly improve the functional performance, significantly improve the performance; (3) other circumstances stipulated by the financial department of the State Council. Fourth central and provincial (including cities with separate planning) budget units in line with the provisions of Article 3 of these measures for procurement projects, may adopt cooperative innovative procurement methods. The central and provincial budget units in charge may carry out cooperative innovation procurement, and may also authorize their subordinate budget units to carry out cooperative innovation procurement. With the approval of the competent provincial-level departments, districted-city level budget units may adopt cooperative and innovative procurement methods. Where cooperative innovation procurement is implemented, R&D funds shall be specified in the departmental budget. The purchaser may entrust a procurement agency to act as an agent for cooperative innovation procurement, and the procurement agency shall carry out procurement activities in accordance with the law within the scope of the entrustment. Article 5: Cooperative innovation procurement shall establish a reasonable risk sharing and incentive mechanism, encourage the active participation of state-owned enterprises, private enterprises, foreign-invested enterprises, institutions of higher learning, scientific research institutions and other suppliers with research and development capabilities, give full play to the radiation effect of financial funds on the research and development of applied technology in the whole society, and promote scientific and technological innovation. Article 6: Cooperative and innovative procurement shall implement the requirements of laws and regulations related to national security. The relevant state departments are to carry out security reviews of cooperative and innovative procurement activities involving national security in accordance with law. Chapter 2 Demand Management Article 7 Before the purchaser carries out cooperative innovation procurement, it shall carry out market research and expert demonstration, and scientifically set the minimum R&D target, maximum R&D cost and R&D period of the cooperative innovation procurement project. The minimum R&D objectives include the main functions, performance, main service content, service standards and other output objectives of the innovative product. The maximum R&D expenses include the cost of the project for R&D cost compensation and the first purchase cost of innovative products, and certain incentive fees can also be set. Article 8 In cooperative innovation procurement, except for procurement from a limited scope or a single supplier, the purchaser shall determine the R&D supplier through open competition. Article 9 In cooperative innovation procurement, the purchaser shall, in accordance with the requirements conducive to reducing R&D risks, set qualification conditions around the R&D capabilities required by the supplier, which may include the existing patents, computer software copyrights, and proprietary technology categories necessary for the cooperative innovation procurement project, the R&D performance of similar projects, and the research foundation that the supplier already has. More than two suppliers can form a consortium and participate in cooperative innovation procurement. R&D activities for cooperative innovation procurement shall be carried out within the territory of China. Except for procurement projects involving national security and state secrets, the purchaser shall ensure that domestic and foreign-funded enterprises participate in cooperative innovation procurement activities on an equal footing. Article 10: Purchasers carrying out cooperative and innovative procurement shall implement policies related to government procurement to support the development of small and medium-sized enterprises. For comprehensive procurement projects where the content of the work is inseparable, the purchaser shall require the supplier who has obtained the procurement contract to subcontract a certain proportion of the procurement project to the small and medium-sized enterprise, so as to promote the participation of small and medium-sized enterprises in innovative research and development activities. Article 11 All kinds of intellectual property rights arising from cooperative innovation procurement shall belong to suppliers in principle in accordance with the Civil Code of the People's Republic of China, the Science and Technology Progress Law of the People's Republic of China, and relevant laws and regulations on intellectual property rights, unless otherwise provided by law or otherwise agreed in the R&D contract. Where intellectual property rights involve national security, national interests, or major societal public interests, it shall be agreed that the purchaser shall enjoy them or agree to enjoy them jointly. Article 12 Before the purchaser carries out cooperative and innovative procurement, it shall formulate a procurement plan. The procurement plan includes the following contents: (1) the minimum R&D target, the maximum R&D cost, the application scenario and the R&D period of the innovative product; (2) the way to invite suppliers; (3) the composition of the negotiation team, the selection method of the review experts, the evaluation method and the preliminary evaluation criteria; (4) the cost scope of the R&D cost compensation and the cost limit of the project for R&D cost compensation; (5) whether to carry out the R&D mid-term negotiation; (6) the ownership of intellectual property rights, the distribution of benefits, (7) Iterative upgrade service requirements for innovative products, (8) Main terms that should be included in the R&D contract, (9) R&D risk analysis and risk control measures, (10) Other matters that need to be determined. The procurer shall carry out consultation and demonstration on the scientificity, feasibility, and compliance of the procurement plan, and implement it after performing internal review and approval procedures in accordance with the relevant provisions of the "Measures for the Management of Government Procurement Needs". Article 13: Purchasers shall, in accordance with the relevant provisions on government procurement, promptly publish information on cooperative and innovative procurement projects on the media designated by the finance department of the people's government at or above the provincial level, including procurement intentions, procurement announcements, R&D negotiation documents, transaction results, R&D contracts, first purchase agreements, etc., except for information involving state secrets and commercial secrets, and other information that must not be disclosed in accordance with laws, administrative regulations, and relevant state provisions. Article 14 Purchasers, suppliers, evaluation experts and relevant personnel shall strictly keep the state secrets, work secrets and commercial secrets learned from participating in cooperative innovation procurement activities. In addition to the information that has already been made public, the information provided by the person concerned shall not be used for other purposes without the consent of the person concerned. Chapter III Ordering Procedures Article 15 The purchaser shall set up a negotiation team, which shall be composed of more than five representatives of the purchaser and evaluation experts. The purchaser shall select the evaluation experts in the corresponding professional field on its own. The review experts shall include a legal expert and an economic expert. The specific composition ratio of the negotiation team, the selection method of the evaluation experts and the personnel adjustment procedures in the procurement process shall be determined in accordance with the internal control management system of the purchaser. The negotiation team is responsible for supplier qualification review, innovation concept exchange, R&D competition negotiation, R&D mid-term negotiation and first purchase review. Article 16: Purchasers shall issue an announcement on cooperative innovation procurement to invite suppliers, but if they can only purchase from a limited scope or a sole supplier due to restrictions such as infrastructure, administrative licensing, and the need to use irreplaceable intellectual property rights or proprietary technology, the purchaser may directly issue an invitation to all qualified suppliers for cooperative innovation procurement. If suppliers are invited in the form of announcement, the announcement period shall not be less than five working days. The announcement of cooperative innovation procurement and the invitation to cooperate in innovation procurement shall include the name of the purchaser and the procurement project, the minimum R&D target, maximum R&D cost, application scenario and R&D period of the innovative product, the qualification requirements for suppliers, and the time and place when suppliers submit application documents for participating in cooperative innovation procurement. At the same time, the purchaser shall specify in the announcement of cooperative innovation procurement and the invitation to cooperative innovation procurement that the minimum R&D target and maximum R&D cost may be substantially adjusted according to the exchange of innovation concepts. The time for submitting the application documents for participating in cooperative innovation procurement shall not be less than 20 working days from the date of issuance of the procurement announcement and invitation. The purchaser shall indicate whether it accepts the participation of the consortium in the cooperative innovation procurement announcement and the invitation for cooperative innovation procurement. If it is not specified, the consortium shall not be denied participation. The negotiation team shall review the qualifications of the suppliers in accordance with the law. If there are only two or one suppliers who submit application documents or pass the qualification examination, they may continue to carry out procurement activities in accordance with the provisions of these measures. Article 17 The negotiation team will focus on the exchange of innovative concepts with all suppliers who have passed the qualification examination, including the minimum R&D target, the maximum R&D cost, the application scenario and other relevant content of the procurement plan for the innovative product. During the exchange of innovative concepts, the negotiation team should answer the questions of suppliers in a comprehensive and timely manner. When necessary, the purchaser or its authorized negotiation team may organize suppliers to conduct centralized Q&A and on-site inspections. Where the procurer makes substantial adjustments to the content of the procurement plan based on the exchange of innovative concepts, it shall perform the necessary internal review and approval procedures in accordance with the relevant provisions of the internal control management system. Article 18 The purchaser shall exchange the results of the innovation concept and form the R&D negotiation documents. The main contents of the R&D negotiation document include: (1) the minimum R&D target, the maximum R&D cost, the application scenario of the innovative product, R&D period and relevant description;(2) Number of R&D suppliers;(3) Cost scope and limit of R&D cost compensation for a single R&D supplier, and if there is another incentive fee, the amount of incentive expenses shall be clarified;(4) The number or amount of innovative products purchased for the first time;(5) Evaluation methods and evaluation criteria, the main evaluation factors and their weights that shall not be changed during the negotiation process, and whether to adopt two-stage review;(6) Response requirements for R&D schedule and corresponding R&D mid-term negotiation stages;(7) The cost scope and amount of R&D cost compensation at each stage(8) Payment methods, timing and conditions for R&D cost compensation; (9) Acceptance methods and acceptance criteria for innovative products; (10) Evaluation criteria for first-time products; (11) Response requirements for intellectual property ownership, benefit distribution, and use methods; (12) Requirements for implementing policies to support the development of small and medium-sized enterprises; (13) Iterative upgrading service requirements for innovative products; (14) Main terms of R&D contracts; (15) Response to document preparation requirements, submission methods, (16) Other matters stipulated by the financial departments at or above the provincial level. The evaluation factors mentioned in these measures mainly include the supplier's R&D plan, the supplier's R&D cost compensation amount and the quotation of the first purchase product amount, the R&D completion time, and the after-sales service plan of innovative products. Among them, the score of the supplier's R&D plan shall not be less than 50% of the total score. The landmark achievements referred to in these measures include the formation of a detailed design scheme of innovative products, the verification of technical principles in the laboratory environment, the successful development of key components of innovative products, the production of model prototypes that meet the requirements, and the trial and performance acceptance of innovative products by purchasers. Article 19 The purchaser shall provide R&D negotiation documents to all suppliers participating in the exchange of innovative concepts, and invite them to participate in R&D competition negotiations. From the date of issuance of the R&D negotiation document to the date of the deadline for the supplier to submit the first response document, it shall not be less than ten working days. The purchaser may make necessary clarifications or amendments to the R&D negotiation documents that have been issued, but shall not change the subject matter of the procurement and the qualifications. If the clarified or modified content may affect the preparation of the response document and cause the supplier to have insufficient preparation time, the purchaser shall postpone the submission of the response document in accordance with the provisions of the R&D negotiation document. Article 20 The supplier shall prepare a response document based on the R&D negotiation documents and make a substantive response to the requirements of the R&D negotiation documents. The response document includes the following contents: (1) the supplier's R&D plan, (2) the R&D completion time, and (3) the response quotation, the supplier shall quote the amount of R&D cost compensation and the amount of the first purchase product respectively, and each shall not be higher than the R&D cost compensation limit and first purchase fee for a single R&D supplier as stipulated in the R&D negotiation document. In addition to the purchase cost of the innovative product itself, the amount of the first purchase of the product also includes the operation and maintenance costs of the innovative product within a certain period of time in the future; (4) the cost scope and amount of R&D cost compensation at each stage; (5) the acceptance method and acceptance criteria of the innovative product; (6) the after-sales service plan of the innovative product; (7) the ownership of intellectual property rights, the distribution of benefits, (8) Iterative upgrading service plan for innovative products, (9) Response content to implement policy requirements such as supporting the development of small and medium-sized enterprises, (10) Other content that needs to be responded. The R&D plan of the supplier referred to in these Measures includes the functions, performance, service content, service standards and other output objectives that the R&D products are expected to achieve, the technical route to be adopted in R&D and its advantages, the risks that may affect R&D and their control measures, the composition of R&D team, the professional ability and experience of team members, the R&D schedule and the description of landmark achievements at each stage, etc. Article 21 The negotiation team shall negotiate with a single supplier separately and make detailed adjustments to the relevant contents. The main contents of the negotiation include: (1) the minimum R&D objectives, acceptance methods and acceptance criteria for innovative products, (2) the supplier's R&D plan, (3) the R&D completion time, (4) the cost scope and amount of R&D cost compensation, and the amount of the first purchase of products, (5) the evaluation criteria for R&D competition negotiations, (6) the cost scope and amount of R&D cost compensation at each stage, (7) the evaluation criteria for first-time products, (8) the ownership of intellectual property rights, benefit distribution, (9) Iterative upgrade service plan for innovative products, (10) Risks that may arise in the performance of R&D contracts and their control measures. During the negotiation, the negotiation team may substantively change the relevant content of the negotiation document according to the negotiation situation, but shall not reduce the minimum R&D target or increase the maximum R&D cost, nor shall it change the main evaluation factors and their weights in the negotiation document. After the negotiation, the negotiation team will determine the final negotiation documents according to the negotiation results, and notify all suppliers participating in the negotiation in writing at the same time. The supplier submits the final response document as required, and the response time given by the negotiation team to the supplier shall not be less than five working days. If there are only two or one supplier submitting the final response document, it may continue to carry out procurement activities in accordance with the provisions of these measures. Article 22 The negotiation team shall review the suppliers whose response documents meet all the substantive requirements of the R&D negotiation documents, and recommend candidates for the transaction according to the ranking of the review scores from high to low. According to the provisions of the negotiation documents, the negotiation team can adopt a two-stage review of the R&D plan and other parts of the supplier's response document, first review the R&D plan part, and then comprehensively review the other parts if the R&D plan score reaches the specified ranking, and determine the transaction candidates according to the total score from high to low. Article 23 The purchaser shall determine the R&D supplier according to the number of R&D suppliers specified in the negotiation documents and the order of the transaction candidates recommended by the negotiation team, and may also authorize the negotiation team in writing to directly determine the R&D suppliers. The maximum number of R&D suppliers shall not exceed three. If the number of candidates for the transaction is less than the number of R&D suppliers specified in the negotiation documents, the purchaser may determine that all the candidates for the transaction are R&D suppliers, and may also re-carry out government procurement activities. The purchaser shall sign a R&D contract with the R&D supplier in accordance with the law. If it can only be purchased from the sole supplier, the purchaser and the supplier shall follow the principles stipulated in these Measures, negotiate and determine a reasonable price according to the R&D cost and the contract price of similar projects that can be referenced, and clarify the functions and performance of the innovative product, the completion time of R&D, the cost scope and amount of R&D cost compensation, the amount of the first purchase of products, the R&D schedule and the corresponding R&D mid-term negotiation stage division and other contract conditions. Article 24 According to the R&D contract, the purchaser shall organize a negotiation team and the R&D supplier to discuss the R&D progress, landmark achievements and acceptance methods and standards at different stages of R&D. The cost scope and amount of R&D cost compensation shall be negotiated in the mid-term of R&D, and the relevant content shall be adjusted in detail according to the progress of R&D, but the scope of compensation costs at each stage of each R&D supplier shall not exceed the cost scope of R&D cost compensation agreed in the R&D contract, and the sum of the cost compensation amounts at each stage shall not exceed the R&D cost compensation amount agreed in the R&D contract. Mid-term R&D negotiations should be completed before the start of each phase. After the expiration of the agreed period at each stage, the R&D supplier shall submit a report on the results and a cost description, and the purchaser shall pay the R&D cost compensation according to the R&D contract and the results of the R&D mid-term negotiation. If the landmark achievements provided by the R&D supplier meet the requirements, it will enter the next R&D stage, and if the R&D supplier fails to complete the landmark results as agreed, it will be eliminated and the R&D contract will be terminated. Article 25 For the finalized innovative products and qualified samples submitted by the R&D supplier, the purchaser shall carry out the acceptance in accordance with the acceptance methods and acceptance standards agreed in the R&D contract, and may invite members of the negotiation team to participate in the acceptance. Chapter IV Procedures for First Purchase Article 26 The purchaser shall carry out the first purchase of innovative products in accordance with the provisions of the R&D contract. If only one R&D supplier develops an innovative product that has passed the acceptance, the purchaser directly determines that it is the first product to be purchased. If the innovative products developed by two or more R&D suppliers have passed the acceptance, the purchaser shall organize a negotiation team to review and determine the innovative products of one R&D supplier as the first purchased product according to the evaluation standards agreed in the R&D contract. The first-purchase review comprehensively considers the function, performance, price, and after-sales service plan of the innovative product, and determines the first-purchase product in accordance with the principle of the best cost performance. At this time, the R&D supplier's quotation for the amount of the first purchase product shall not be higher than the first purchase fee specified in the R&D negotiation documents. The purchaser shall, within 10 working days after determining the first purchase product, publish the information of the first purchase product on the media designated by the finance department of the people's government at or above the provincial level, and sign the first purchase agreement of the first purchase product with the supplier of the first purchase product in accordance with the first purchase quantity or amount of the innovative product agreed in the R&D contract, clarifying the function, performance, service content and service standards of the first purchase product, the quantity, unit price and total amount of the first purchase, the delivery time of the first purchase product, the payment method and conditions of the funds, etc., as a supplementary agreement to the research and development contract. Article 27 During the validity period of the R&D contract, the supplier shall provide iterative upgrading services for the first purchased products in accordance with the provisions of the R&D contract, and replace the original first-purchased products with the upgraded innovative products. If the purchaser needs to adjust the cost due to the adjustment of the function and performance target of the innovative product, the additional cost shall not exceed 10% of the initial purchase amount. Article 28 If other purchasers have needs, they may directly purchase the innovative products announced in the designated media, or they may entrust suppliers to customize the innovative products and purchase them without reducing the core technical parameters of the innovative products. Where other purchasers purchase innovative products, they shall voluntarily sign a procurement contract with the supplier on an equal footing at a price not higher than the initial purchase price before the date of termination of the R&D contract for the innovative product. Article 29: The finance department of the State Council, in conjunction with the relevant industry departments under the State Council, selects key products among the products purchased for the first time, formulates corresponding procurement demand standards, and recommends them for use in government procurement; Chapter 5 R&D Contract Management Article 30 The purchaser shall sign the R&D contract in accordance with all the substantive requirements of the R&D negotiation documents and the response documents of the R&D supplier. The R&D contract shall include the following contents: (1) the name, address and contact information of the purchaser and the R&D supplier; (2) the name and number of the procurement project; (3) the function, performance, service content, service standards and other output objectives of the innovative product; (4) the cost scope and amount of R&D cost compensation, and if there is a separate incentive fee, the amount of the incentive fee; (5) the number of innovative products purchased for the first time, Unit price and total amount;(6) R&D schedule and corresponding R&D mid-term negotiation stage division;(7) Cost scope and amount of R&D cost compensation at each stage, landmark achievements;(8) Payment method, time and conditions of R&D cost compensation;(9) Acceptance methods and acceptance criteria for innovative products;(10) Evaluation criteria for first-time products;(11) After-sales service and iterative upgrade service plan for innovative products;(12) Intellectual property ownership agreement, benefit distribution, (13) Implement the requirements of policies to support the development of small and medium-sized enterprises, (14) The term of the R&D contract, (15) The risks that may arise in the performance of the contract and their control measures, (16) The confidentiality of technical information and materials, (17) The termination of the contract, (18) Liability for breach of contract, (19) Dispute resolution methods, (20) Other matters that need to be agreed. If the scope and amount of compensation costs and landmark achievements agreed in the R&D contract are adjusted in detail during the mid-term R&D negotiations, the purchaser shall sign a supplementary agreement with the R&D supplier on the changes. Article 31 The term of the R&D contract includes the period of R&D, iterative upgrading and delivery of innovative products, and shall generally not exceed two years, and shall not exceed three years if it is a major cooperative innovation procurement project. Article 32 The R&D contract is a cost compensation contract. The scope of cost compensation includes the equipment costs, operating expenses, labor costs and indirect costs actually invested by the supplier in the R&D process. The purchaser shall pay R&D cost compensation and incentive fees to the R&D supplier in accordance with the R&D contract. For cooperative innovation procurement projects where the reserved quota is specifically for small and medium-sized enterprises, the joint agreement or subcontract intention agreement shall clearly share the risk in accordance with the provisions on cost compensation of R&D contracts. Article 33 The purchaser shall pay an advance payment to the supplier of the first-time product for the production and manufacturing of the innovative product. The amount of the advance payment shall not be less than 30% of the total amount of the first purchase as agreed in the first purchase agreement. Article 34 In the performance of the R&D contract, if the purchaser believes that it is meaningless to continue to perform the R&D contract due to the fact that similar products of the innovative products to be developed have appeared in the market, the purchaser shall promptly notify the R&D supplier to terminate the R&D contract and pay the corresponding R&D cost compensation to the R&D supplier in accordance with the R&D contract. If the R&D fails or partially fails due to insurmountable technical difficulties, the R&D supplier shall promptly notify the purchaser to terminate the R&D contract and take appropriate remedial measures to reduce the losses, and the purchaser shall pay the R&D supplier the corresponding R&D cost compensation in accordance with the R&D contract. If the R&D work is significantly delayed, stalled or failed due to the R&D supplier's breach of the contract, the purchaser may terminate the R&D contract, and the R&D supplier shall bear the corresponding liability for breach of contract. Chapter VI Dispute Handling, Supervision and Inspection and Legal LiabilityArticle 35 If a supplier believes that its legitimate rights and interests have been harmed by the process of inviting to participate in cooperative innovation procurement and the process of qualification review, it may raise a question or complaint in accordance with law. Suppliers participating in R&D competition negotiations, R&D mid-term negotiations, and first-time purchase reviews may file questions or complaints in accordance with the law if they believe that their legitimate rights and interests have been harmed by R&D negotiation documents, procurement processes, and transaction results. Article 36 The financial sector shall, in accordance with the law, strengthen the supervision and inspection of cooperative and innovative procurement activities, and if the purchaser, procurement agency, or supplier is found to have violated the provisions of these measures, the financial sector shall order it to make corrections within a time limit. Article 37: Where the provisions of these Measures are violated and are ordered to make corrections within a set period of time, it still affects or may affect the results of the transaction or the performance of the contract, it shall be dealt with in accordance with government procurement laws, administrative regulations, and rules. Article 38: Where parties to government procurement violate the provisions of these Measures and cause losses to others, they bear civil liability in accordance with law. Chapter VII Supplementary Provisions Article 39 Where cooperative innovation procurement projects involve state secrets, the entrustment of the procurement agency, supplier qualifications, scope of competition, information release, etc., shall be implemented in accordance with the relevant provisions on government procurement involving secrets. Article 40 The financial departments of all provinces, autonomous regions and municipalities directly under the Central Government may formulate specific implementation measures in accordance with these measures. Article 41 The term "within the territory of China" as used in these Measures refers to the administrative jurisdiction of the People's Republic of China to which the Customs Law of the People's Republic of China applies, excluding separate customs areas such as Hong Kong, Macao and Kinmen and Matsu in Taiwan. Article 42: These Measures take effect on June 1, 2024.