IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Oct 2012 | Removal date: 31 Dec 2015
Still in force

Public procurement preference margin

On 28 September 2012, the Brazilian government decided in Decree no. 7.816 to apply a margin of preference of 14% to 17% to the public procurement of various nationally produced vehicles.
 
The margins of preference are set as follows:

  • 17% for trucks, tractors, tractors for semi-trailers, and combat vehicles
  • 14% for trailers and semi-trailers for agricultural use as well as other types of (semi-) trailers.
  • 15% for ambulance vehicles

 
This means that if the lowest bid comes from a foreign company, a domestic contractor will be preferred by the government if he offers a price that is within the range of the lowest bid plus the preferential margin. Brazil's preferential margins-scheme was introduced by Law no. 12.349/2010 in the realm of the Plano Brasil Maior, i.e., Greater Brazil Plan (see related measure).
 
The measure, Decree no. 7.816, came into power with its publication in the Official Gazette on 1 October 2012 and stayed in effect until 31 December 2013.
 
In December 2013, the scheme was prolonged for an additional two years by Decree no. 8.171/2013.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

441 Agricultural or forestry machinery & parts
8701 Tractors (other than tractors of heading 87.09).
870110 Pedestrian controlled tractors
870130 Tracklaying tractors
870190 Other
8716 Trailers and semitrailers; other vehicles, not mechanically propelled; parts thereof.
871620 Selfloading or selfunloading trailers and semitrailers for agricultural purposes
444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
447 Weapons & ammunition & parts
8710 Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles.
871000 Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles.
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers
8702 Motor vehicles for the transport of ten or more persons, including the driver.
870210 With compressionignition internal combustion piston engine (diesel or semidiesel)
870290 Other
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
8705 Special purpose motor vehicles, other than those principally designed for the transport of persons or goods (for example, breakdown lorries, crane lorries, fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying lorries, mobile wor
870510 Crane lorries
870530 Fire fighting vehicles
870590 Other
492 Motor vehicle bodies; trailers & parts thereof
8716 Trailers and semitrailers; other vehicles, not mechanically propelled; parts thereof.
871639 Other
871640 Other trailers and semitrailers
871690 Parts
499 Other transport equipment & parts
8716 Trailers and semitrailers; other vehicles, not mechanically propelled; parts thereof.
871680 Other vehicles

Please report this page in case you detect an inaccuracy in its content.