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: 21 Sep 2012 | Removal date: 21 Dec 2015
Still in force

Public procurement preference margin

On 20 September 2012, the Brazilian government decided in Decree no. 7.812 to apply a margin of preference of 20% to the public procurement of nationally produced railways.
 
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. 7.812, applies to electric railways, other types of railways, litorinas, light rail transit (LRT), vehicles for inspection and maintenance, passenger cars, freight trains and parts of vehicles for railways.
 
The decree came into power with its publication in the Official Gazette on 21 September 2012 and stays in effect until 31 December 2015.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

495 Railway & tramway locomotives & rolling stock; parts
8602 Other rail locomotives; locomotive tenders.
860210 Dieselelectric locomotives
8603 Selfpropelled railway or tramway coaches, vans and trucks, other than those of heading 86.04.
860310 Powered from an external source of electricity
8604 Railway or tramway maintenance or service vehicles, whether or not selfpropelled (for example, workshops, cranes, ballast tampers, trackliners, testing coaches and track inspection vehicles).
860400 Railway or tramway maintenance or service vehicles, whether or not selfpropelled (for example, workshops, cranes, ballast tampers, trackliners, testing coaches and track inspection vehicles).
8607 Parts of railway or tramway locomotives or rollingstock.
860711 Driving bogies and bisselbogies
860719 Other, including parts
860721 Air brakes and parts thereof
860729 Other
860730 Hooks and other coupling devices, buffers, and parts thereof
860791 Of locomotives
860799 Other

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