Section 55 SektVO (Sector Ordinance) concerns supply bids with products from certain third countries. The rule can apply even if the bidder and its distributor are based in Germany. To check it, you need to know where the goods offered come from and what share of the relevant goods value they make up. Section 55 SektVO.
Legal and source status: September 5, 2026.
Which goods does the 50 percent rule cover?
Under subsection 1, the contracting entity for a supply contract can reject bids if the relevant share of goods is more than 50 percent. This covers goods from countries outside the European Economic Area with which there are also no relevant agreements on mutual market access. So not every product from a non-EU country falls under this rule. For the existing agreements, the law refers to notices by the Federal Ministry for Economic Affairs in the Bundesanzeiger (Federal Gazette). Section 55 (1) SektVO.
The European basis specifies the reference to the total value of the products contained in the bid and the determination of origin under the Union Customs Code. For a mixed bid, you should therefore keep goods items and services clearly apart. The invoicing party or the place of dispatch does not replace an origin check. Article 85 of Directive 2014/25/EU.
A worked example for a pure supply bid
Hypothetical example: A supply bid contains goods with a total value of €600,000. Of this, €330,000 relates to products from countries that fall under the third-country rule for this purchase. The relevant share is 55 percent. A rejection under subsection 1 is therefore possible. It does not happen automatically.
At €300,000 it would be exactly 50 percent. The "more than 50 percent" threshold would then not be exceeded. Both calculations assume that origin, values and the classification of the countries concerned are settled. The example makes no statement about any particular country of origin.
Sales and purchasing should check the calculation together before the bid is released. If an item remains unclear, document the open amount. Also calculate how the classification of this item affects the overall share. This shows you which missing piece of information can actually change the assessment.
What does the 3 percent rule mean?
If bids are equivalent under the award criteria, the bid that cannot be rejected under subsection 1 should generally be preferred. Prices count as equivalent if they differ by no more than three percent. This does not mean a blanket price credit. Equivalence under the award criteria is also a requirement. Section 55 (2) SektVO.
The preference does not apply in the technical exception described there: when it would lead to equipment with different technical characteristics and thus to incompatibility, technical difficulties in operation or maintenance, or disproportionate costs.
Checklist for your supply chain
- Record goods item, value, relevant origin and available evidence in one overview.
- For affected countries of origin, check the relevant market access for the specific purchase.
- Clarify open origin details with the manufacturer or supplier.
- Document the calculation basis and value shares in a traceable way.
- Check the required declarations of origin and evidence in the procurement documents. If anything is unclear, ask a specific bidder question in good time.
- Have technical alternatives checked for suitability, availability and impact on pricing.
Software used in the equipment of telecommunications networks explicitly counts as goods under this rule. Take this special rule into account in your item overview for such supply bids. Section 55 (3) SektVO.
Frequently asked questions about Section 55 SektVO
What does Section 55 SektVO govern?
Section 55 SektVO governs how supply bids that contain products from certain third countries are handled. If its requirements are met, the rule allows a rejection, and it contains a preference rule for equivalent bids.
Does a third-country share above 50 percent automatically lead to exclusion?
No. Subsection 1 allows an affected supply bid to be rejected, but does not require it automatically. Only goods from the countries covered by the law without relevant mutual market access count. Exactly 50 percent does not exceed the limit.
Is a German supplier enough as proof of origin?
No. Where the supplier is based does not prove the origin of the goods offered. Companies should determine the relevant origin of goods and the value shares using reliable documents from their supply chain.
Use the origin overview in your next bid review. You can find the classification of the contracting entity and the current value limits in the SektVO guide 2026. The article on Section 13 SektVO explains the requirements for choosing a procedure.