Purpose
The Direct Manufacturing Certification Program seeks to prevent
certain malpractices, in which an SMB is awarded with a contract
through a Competition-between-SMBs Tender and supplies products
manufactured by a large corporation or imported goods, or has
the products manufactured by a subcontractor supplied through them.
It also seeks to prevent the borrowing of the names of the incorporations,
or tenants of agricultural industrial complexes which are qualified for
a non-tender based contract and supply products which are manufactured
by other sub-contractors.
Key Contents
1. Register with the Public Purchasing System General Information System (smpp.go.kr)
In order for SMBs which manufacture Competition-between-SMBs products
to participate in a public procurement tender, it is necessary to have their capability
to manufacture the products for themselves verified.
Register with the Public Purchasing System General Information System (smpp.go.kr)
2. Method of verification
The verification of direct manufacturing should be conducted
by dispatching inspectors to the factory to review and inspect the factory, manufacturing equipment,
process, required man-power, and other related documents.
3. Parties subject to the verification
The parties subject to such a verification shall include
the SMB which is expected to be awarded with the contract through a Competition-between-SMBs
tender or a non-tender contract, of which the contract volume is 10 million won or higher.
4. Verification agency
In principle, the head of the purchasing public agency of
the contract should conduct the verification. However, it is possible to substitute
the process with the certification document provided by the President of SMBA through
the General Public Purchasing Information.
5. Disciplinary Actions
An SMB which supplied products it did not manufacture shall have
their direct manufacturing certification status cancelled and prevented from applying
for a re-verification for a period of 6 months to one year.
6. Processing time
The President of the Korea Federation of SMBs should process
the case within 14 days (not including Saturdays, Sundays, and public holidays)
(Item 7, Article 30, Operation Guideline)