ANNOUNCEMENT 30 May 2011
The Government of Paraguay has reduced the local content margin levels used in government procurement tenders.
NUMBER OF INTERVENTIONS
Official Gazette of the Republic of Paraguay. Gaceta Oficial de la República de Paraguay. Número 112 de 13 junio de 2011. Decreto 6.674. Available at: http://www.gacetaoficial.gov.py/index/detalle_publicacion/7559
Library and National Archive of the National Parliament. Biblioteca y Archivo Nacional del Congreso de la Nación. Ley Nº 2051 de contrataciones públicas. Available at: http://www.bacn.gov.py/leyes-paraguayas/159/ley-n-2051-de-contrataciones-publicas
On 30 May 2011, the Ministry of Treasury of Paraguay has adopted Decree 6674/2011 reducing from 40% to 20% the public procurement preference margin set on governmental procurement. Previous applicable values were established in Law 2051/2003.
The changes introduced, imply that in the event that the most favourable offer refers to imported manufactured goods, the offer will be compared with the lowest offer based on nationally produced goods increasing the price by 20%. Then the two offers will be compared and the offer based on imported goods will only be chosen if the price with the 20% increase is lower than the lowest offer based on nationally produced goods.
Previous to the new resolution, the margin was set at 40%.
Decree 6674/2011 has entered into force on 13 June 2011.