Foreign contractors are required to perform, in good faith, its ICP obligations free of any charge to the Taiwan government. The implementation of ICP should not adversely affect the quality, schedule and cost of the procurement projects concerned.
Designated procurement projects conducted by government agencies and state-owned enterprises for products or services provided by foreign contractors are subject to ICP requirements. For any defense procurement project with a value of US$5 million or more, the Required Credits shall be at least forty (40) percent of the price of the procurement contract.
The total amount of Required Credits to be fulfilled by a foreign contractor will be set forth in the Specifications. The value of the Required Credits is usually expressed in US dollars.
The Specifications, if any, will be included in the tender documents or request for proposals. Specifications normally have an attachment of a draft ICA, which will be signed by and between the foreign contractors and the IDB, preferably before the foreign contractors have won the bid or have signed the procurement contract, as the case may be. The Specifications and the ICAs will clearly specify the scope of ICP obligations, the categories of eligible ICP transactions, procedures for preliminary and final approvals of the eligible ICP transactions, and the powers of the Executive Committee.
Foreign contractors should submit ICP proposals to, and seek approval from the Executive Committee. The ICP proposal should include project description, type of cooperation, description of products, advantages to local industry, project action plan and implementation schedule, and proposed credit; and also contain other documents required by the Executive Committee.