ANNOUNCEMENT 03 Apr 2012

In April 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



Ministry of Development, Industry and Trade (MDIC), 3 April 2012, press release on Decree no. 7.713: http://www.desenvolvimento.gov.br/sitio/interna/noticia.php?area=1&noticia=11422

Updated version of Decree no. 7.713 of 3 April 2012, published in Official Gazette on 4 April 2012: http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7713.htm

Decree no. 8.225 of 3 April 2014, published in the Official Gazette of 4 April 2014, p. 3: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?data=04/04/2014&jornal=1&pagina=3&totalArquivos=232

Associa??o Brasileira de Importadores e Distribuidores de Implantes (ABRAIDI), press release of 7 April 2014, 'Decreto disp?e sobre margens de prefer?ncia na aquisi??o de f?rmacos e medicamentos':
http://www.abraidi.com.br/noticias/n2014/n-2014-abril/295-decreto-dispoe-sobre-margens-de-preferencia-na-aquisicao-de-farmacos-e-medicamentos.html


Inception date: 04 Apr 2012 | Removal date: 03 Apr 2017
Still in force

Public procurement preference margin

On 3 April 2012, the Brazilian government decided in Decree no. 7.713 to apply a margin of preference of 8% to 25% for the public procurement of nationally produced pharmaceutical drugs and biological medical products.
 
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. Brazil's preferential margins scheme was introduced by Law no.12.349/2010 in the realm of the Plano Brasil Maior, i.e., Greater BrazilPlan (see Related Measures).
 
The decree stipulates that medical drugs of national or partial-national production have a margin of preference of 20%, while medications that are still being developed or that are soon going to be produced received a margin of 8%. There is also an additional margin of 5% for products that are based on domestic technological development and innovation.
 
The measure, Decree no. 7.713, came into power on 4 April 2012. The effective periods vary depending on the group of products:

  • goods which have been produced in the country (group 1) until 30 March 2014
  • goods which have been developed and produced in the country (groups 2 to 6) until 30 March 2017

 
Update
On 3 April 2014, Decree no. 8.225 extended the period for products belonging to group 1 until 31 December 2015, starting 30 March 2014.