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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):
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).
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