Dumping in public procurement: thresholds and the anti-dumping amount
Published · 3 min read
You can cut your price to win — but only within limits. If the price falls below the threshold, the supplier either pays an additional anti-dumping amount or (in construction, design and certain services) cannot win at that price at all.
What a dumping price is
Under Article 13 of the Law, a dumping price is a price below the threshold set by the Rules. You may offer it, but then, in addition to performance security, the winner pays an anti-dumping amount — the difference between the minimum non-dumping price and its own price.
Example: 10 million ₸ has been allocated and the threshold is 10% below the allocated amount, i.e. 9 million ₸. You offered 8.5 million ₸ — the anti-dumping amount will be 500,000 ₸.
Thresholds by procurement method
| Procurement | Dumping means a price below… | Can you win at a dumping price? |
|---|---|---|
| Open tender, general case (goods, most works and services) | the allocated amount by more than 10% | Yes, with an anti-dumping amount |
| Request for price quotations | the allocated amount by more than 10% | Yes, with an anti-dumping amount |
| E-shop | the average of all offers by more than 30% | No — the offer is rejected automatically |
| Construction and installation works | the price of the design and estimate documentation (ПСД) that has passed expert review by more than 2% | No |
| Medium repair of roads | the price of the technical documentation by more than 5% | No |
| Routine repair of buildings, structures and roads | the allocated amount by more than 20% | No |
| Feasibility studies (ТЭО) and design and estimate documentation, engineering, state social order, catering | the standard or allocated amount by more than 10% | No |
The Rules set no separate dumping threshold for auctions, but the starting price cannot be more than 5% below the allocated amount.
If the anti-dumping amount is not paid
A winner that fails to pay the anti-dumping amount on time is deemed to have evaded concluding the contract. The consequences:
- the bid security is retained;
- the supplier is entered in the unscrupulous suppliers register for 24 months;
- the contract, if already signed, may be terminated.
How to avoid the low-price trap
- Calculate your cost including delivery, taxes and performance security — not just the purchase price.
- Check what this customer and your competitors closed similar lots for: a lot page on MyTender shows past procurement results, the typical discount and competitor profiles.
- If your price is below the threshold, set aside the anti-dumping amount in advance — it must be paid together with performance security.
- Check whether the procurement covers works where dumping is banned outright: a bid at such a price simply will not win there.
Before bidding, compare your price with the customer's past procurement results — on any lot page on MyTender.
Open in MyTender →MyTender sections on this topic
FAQ
What percentage counts as dumping in public procurement?
In an open tender (general case) and an RFQ, a price more than 10% below the allocated amount. In the e-shop, a price more than 30% below the average of all offers. Construction and certain works have their own thresholds, from 2% to 20%.
Can you win at a dumping price?
In an open tender (general case) and an RFQ — yes, if you pay the anti-dumping amount. In construction and installation works, repairs, design, expert review, engineering, the state social order and catering — no. In the e-shop, dumping offers are rejected automatically.
Sources
- Закон РК от 1 июля 2024 года № 106-VIII «О государственных закупках» — adilet.zan.kz
- Правила осуществления государственных закупок (приказ МФ РК № 687) — adilet.zan.kz
This article is for reference only and is not legal advice. Rules change: check the current versions of the Law and the Rules before you bid.