IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 02 Aug 2011 | Removal date: open ended
Still in force

Public procurement preference margin

On 2 August 2011, the government of Brazil announced its plan "Brasil Maior" through which it intends to strengthen the productivity and competitiveness of Brazilian industry. The following components of the plan concern the country's trade policy.
 

  • Companies in enumerated labour-intensive sectors are freed from paying payroll taxes until the end of 2012, namely clothing, footwear, furniture and software. The government expects the measure to cut costs by R25 billion (USD 16 billion). Part of this cost shall be returned through a revenue tax of 1.5 percent (2.5 percent for software). The described scheme may be prolonged if proven successful.
  • Introduction of a preference margin for domestic products in the government procurement regulation. Products originating in Brazil shall be allowed to cost up to 25 percent more than the equivalent imported product.
  • Faster anti-dumping procedures. Investigation times shall be reduced from 15 to 10 months for anti-dumping measures and from 240 to 120 days for provisional anti-dumping duties. Supporting this goal, the number of anti-dumping investigators shall be increased from 30 to 120 investigators.

 

AFFECTED COUNTRIES

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