Certain circumstances must result in the exclusion of a supplier while other circumstances may result in exclusion.
A contracting authority must exclude a supplier if the authority learns that the supplier has been guilty of a particular financial crime according to a judgment that has entered into final legal force.
The crimes that must entail exclusion are described by reference to various EU legal acts and the aim is to prevent contracting authorities from entering into an agreement with suppliers that have been sentenced for certain kinds of crime (participating in a criminal organisation, corruption, fraud and money laundering) aimed at, among other things, the financial interests of the Union.
Circumstances that may entail the exclusion of a supplier include a supplier being put into bankruptcy or liquidation or a supplier being sentenced for an offence relating to professional practice (i.e. offences other that those that entail mandatory exclusion) according to a judgment that has entered into final legal force.
The contract documents must state whether the contracting authority wishes to be able to apply the nonmandatory grounds for exclusion.