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: 04 Apr 2012 | Removal date: 02 Nov 2012
Still in force

Public procurement preference margin

On 3 April 2012, the Brazilian government decided in Decree no. 7.709 to apply a margin of preference for the public procurement of nationally produced backhoes and motor graders of 10% and 18%, respectively.
 
This means that a domestic producer will be preferred by the government if the contractor offers a price that is within the range of the lowest bid by a foreign company 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 BrazilPlan (see related measure).
 
The measure, Decree no. 7.709, came into power with its publication in the Official Gazette on 4 April 2012 and was supposed to stay effect until 31 December 2015. On 12 November 2012, the margins were increased by Decree no. 7.841. Please, see related measure no. 9375 under Related Measures.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

444 Machinery for mining, quarrying & construction; parts
8429 Selfpropelled bulldozers, angledozers, graders, levellers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers.
842911 Track laying
842919 Other
842920 Graders and levellers
842930 Scrapers
842940 Tamping machines and road rollers
842951 Frontend shovel loaders
842952 Machinery with a 360? revolving superstructure
842959 Other

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