JTPP Helpdesk monitors hundreds of tender notices issued by Japanese government organisations each week and sometimes there are those that attract our special attention.

It in Japan it is quite rare to tender processed food under WTO rules, but this week a couple of tender notices published by Japan Post Bank caught our eye.

JTPP Helpdesk looked into the specifications of the tenders and found out that in both cases the manufacturer of the items was specified in detail. The assorted cake tender actually concerns a product made by Nakajima Taishodo and the chocolates a set made by Mary Chocolate Co. Ltd.  Under WTO rules governing entities can specify which manufacturer or product they wish to procure and let resellers compete in a competitive procedure. However in case of a unique product made by a particular manufacturer, often single tender procedures are used, and entities specify the reason for using that procedure. In a case like this, it is more common that entities specify the kind of product they would like to procure to avoid an impression that contracts are already fixed in advance. For this particular tender the result will most likely be that either the reseller who is willing to take the lowest profit margin or the producer themselves will secure the contract. Foreign bidders are a least not expected to participate. 

Sources: Japan Post Bank [1], [2]