ANNOUNCEMENT 12 Nov 2012

In November 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 7.843 of 12 November 2012, published in Official Gazette on 13 November 2012 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7843.htm

Decree 8.170 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/D8170.htm


Inception date: 13 Nov 2012 | Removal date: 12 Feb 2015
Still in force

Public procurement preference margin

On 12 November 2012, the Brazilian government decided in Decree no. 7.843 to apply a margin of preference of 20% to the public procurement of nationally produced coin plates and electrotyped steel plates.
 
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 Measures).
 
The measure, Decree no. 7.843, came into power with its publication in the Official Gazette on 13 November 2012 and stayed in effect until 31 December 2013.
 
On 23 December 2013, the Brazilian government decided in Decree no.8.170 to prolong the period of the margin of preference for the publicprocurement of nationally produced coin and electrotyped steel platesuntil 31 December 2015.

AFFECTED SECTORS