ANNOUNCEMENT 20 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 7.812 of 20 September 2012, published in Official Gazette on 21 September 2012 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7812.htm

EcoFinan?as, 21 September 2012, 'Margem de prefer?ncia chega a ve?culos para vias f?rreas': http://www.ecofinancas.com/noticias/margem-preferencia-chega-veiculos-para-vias-ferreas


Inception date: 21 Sep 2012 | Removal date: 21 Dec 2015
Still in force

Public procurement preference margin

On 20 September 2012, the Brazilian government decided in Decree no. 7.812 to apply a margin of preference of 20% to the public procurement of nationally produced railways.
 
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. 7.812, applies to electric railways, other types of railways, litorinas, light rail transit (LRT), vehicles for inspection and maintenance, passenger cars, freight trains and parts of vehicles for railways.
 
The decree came into power with its publication in the Official Gazette on 21 September 2012 and stays in effect until 31 December 2015.

AFFECTED SECTORS