ANNOUNCEMENT 28 Sep 2012

In September 2012, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Decree 7.816 of 28 September 2012, published in Official Gazette on 1 October 2012 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7816.htm

Portal Brasil, 2 of October 2012, 'Definidas margens de prefer?ncia para compras de caminh?es, furg?es e implementos rodovi?rios nacionais': http://www.brasil.gov.br/economia-e-emprego/2012/10/definidas-margens-de-preferencia-para-compras-de-caminhoes-furgoes-e-implementos-rodoviarios-nacionais

Decree 8.171 of 23 December 2013, published in Official Gazette on 24 December 2013 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2013/Decreto/D8171.htm


Inception date: 01 Oct 2012 | Removal date: 31 Dec 2015
Still in force

Public procurement preference margin

On 28 September 2012, the Brazilian government decided in Decree no. 7.816 to apply a margin of preference of 14% to 17% to the public procurement of various nationally produced vehicles.
 
The margins of preference are set as follows:

  • 17% for trucks, tractors, tractors for semi-trailers, and combat vehicles
  • 14% for trailers and semi-trailers for agricultural use as well as other types of (semi-) trailers.
  • 15% for ambulance vehicles

 
This means that if the lowest bid comes from a foreign company, a domestic contractor will be preferred by the government if he offers a price that is within the range of the lowest bid 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 Brazil Plan (see related measure).
 
The measure, Decree no. 7.816, came into power with its publication in the Official Gazette on 1 October 2012 and stayed in effect until 31 December 2013.
 
In December 2013, the scheme was prolonged for an additional two years by Decree no. 8.171/2013.