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: 13 Nov 2012 | Removal date: open ended
Still in force

Public procurement preference margin

On 12 November 2012, the Brazilian government decided in Decree no. 7.840 to apply a margin of preference to the public procurement of nationally produced drills and various agricultural tools as well as vehicles.
 
The margins of preference are set as follows (NCM, i.e., Mercosur Common Nomenclature):

  • Drills for artesian aquifers or public works (NCM 8430.4), 20%
  • Aerosols (NCM 8424.81.1), 20%
  • Fences and cultivators (NCM 8432.2), 20%
  • Plows (NCM 8432.10.00), 20%
  • Dibbers (NCM 8432.30), 20%
  • Lime spreaders (NCM 8432.80.00), 20%
  • String trimmers (NCM 8433.20), 20%
  • Forage harvester (NCM 8433.30), 20%
  • Tractors with max. 99 horsepower (NCM 8701.90.90), 15%
  • Tractors with above. 100 horsepower (NCM 8701.90.90), 20%
  • Agricultural trailers (NCM 8716.20.00), 20%

 
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 measures). This means that the Brazilian government will prefer a domestic producer if he offers a price that is within the range of the lowest bid by a foreign company plus the preferential margin.
 
The measure, Decree no. 7.840, came into power on 13 November 2012 and was supposed to stay in effect until 31 December 2013. On 15 May 2013, the measure was prolonged until 31 December 2015 by Decree no.8.002/2013.
 
Decree no. 8.002/2013 also altered some descriptions of the abovementioned goods. However, the first four digits of the tariff code stayed the same. Besids this, one tariff line was added to the list by the Decree which is mentioned in measure no. 9376 (see Related Measures).

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

439 Other general-purpose machinery & parts
8424 Mechanical appliances (whether or not handoperated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machi
842410 Fire extinguishers, whether or not charged
842420 Spray guns and similar appliances
842430 Steam or sand blasting machines and similar jet projecting machines
842489 Other
842490 Parts
441 Agricultural or forestry machinery & parts
8424 Mechanical appliances (whether or not handoperated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machi
842481 Agricultural or horticultural
8432 Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sportsground rollers.
843230 Seeders, planters and transplanters
843280 Other machinery
843290 Parts
8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 84.37.
843311 Powered, with the cutting device rotating in a horizontal plane
843319 Other
843320 Other mowers, including cutter bars for tractor mounting
843330 Other haymaking machinery
843340 Straw or fodder balers, including pickup balers
843351 Combine harvesterthreshers
843353 Root or tuber harvesting machines
843359 Other
843360 Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce
843390 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
8430 Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; piledrivers and pileextractors; snowploughs and snow blowers.
843010 Piledrivers and pileextractors
843031 Selfpropelled
843039 Other
843041 Selfpropelled
843049 Other
843050 Other machinery, selfpropelled
843061 Tamping or compacting machinery
843069 Other
491 Motor vehicles, trailers & semi-trailers; parts
8701 Tractors (other than tractors of heading 87.09).
870120 Road tractors for semitrailers
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

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