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



Updated version of Decree no. 7.840 of 12 November 2012, published in the Official Gazette of 13 November 2012: http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7840.htm

Decree no. 8.002 of 14 May 2013, published in the Official Gazette of 15 May 2013, p. 4: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=4&data=15/05/2013


Inception date: 13 Nov 2012 | Removal date: open ended
Still in force

Public procurement preference margin

On 12 November 2012, the Brazilian government decided in Decree no. 7.840 to apply a margin of preference to the public procurement of nationally produced drills and various agricultural tools as well as vehicles.
 
The margins of preference are set as follows (NCM, i.e., Mercosur Common Nomenclature):

  • Drills for artesian aquifers or public works (NCM 8430.4), 20%
  • Aerosols (NCM 8424.81.1), 20%
  • Fences and cultivators (NCM 8432.2), 20%
  • Plows (NCM 8432.10.00), 20%
  • Dibbers (NCM 8432.30), 20%
  • Lime spreaders (NCM 8432.80.00), 20%
  • String trimmers (NCM 8433.20), 20%
  • Forage harvester (NCM 8433.30), 20%
  • Tractors with max. 99 horsepower (NCM 8701.90.90), 15%
  • Tractors with above. 100 horsepower (NCM 8701.90.90), 20%
  • Agricultural trailers (NCM 8716.20.00), 20%

 
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). This means that the Brazilian government will prefer a domestic producer if he offers a price that is within the range of the lowest bid by a foreign company plus the preferential margin.
 
The measure, Decree no. 7.840, came into power on 13 November 2012 and was supposed to stay in effect until 31 December 2013. On 15 May 2013, the measure was prolonged until 31 December 2015 by Decree no.8.002/2013.
 
Decree no. 8.002/2013 also altered some descriptions of the abovementioned goods. However, the first four digits of the tariff code stayed the same. Besids this, one tariff line was added to the list by the Decree which is mentioned in measure no. 9376 (see Related Measures).