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: 13 Dec 2015
Still in force

Public procurement preference margin

On 12 November 2012, the Brazilian government decided in Decree no. 7.841 to increase the margins of preference for the public procurement of nationally produced backhoes and motor graders. The margins went from 10% to 15% for backhoes and from 18% to 25% for motor graders. 
 
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 as part of the Plano Brasil Maior,i.e., Greater Brazil Plan. The margins of preference on the two above mentioned goods were originally introduced by Decree no. 7.709/2014. For more information on this subject, please consult the links under Related Measures.
 
The measure, Decree no. 7.841, came into power on 13 November 2012 and stays in effect until 31 December 2015.

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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