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: 20 Jan 2014 | Removal date: 20 Dec 2015
Still in force

Public procurement preference margin

On 17 January 2014, the Brazilian government decided in Decree no. 8.185 to apply a margin of preference of up to 25% for the public procurement of airplanes. There is to be a margin of 9% in cases when an airplane is produced and a further 16% if it were developed in Brazil.
 
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 of 9% or 25%. 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).
 
The airplanes affected by this policy are classified under the Mercosur Common Nomenclatures (NCM) 8802.30.31, 8802.30.39 and 8802.40.90.
 
The measure (Decree no. 8.185) came into power on 20 January 2014 and lasts until 31 December 2015.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg

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