ANNOUNCEMENT 14 Jun 2012In June 2012, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.
NUMBER OF INTERVENTIONS
Ministry of Development, Industry and Trade (MDIC) news item of 15 June 2012 (in Portuguese): http://www.desenvolvimento.gov.br/sitio/interna/noticia.php?area=2¬icia=11607
Decree 7.756 of 14 June 2012, published in Official Gazette on 15 June 2012 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7756.htm
Decree 8.167 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/D8167.htm
On 14 June 2012, the Brazilian government decided in Decree no. 7.756 to apply a margin of preference of up to 20% for nationally produced clothing and footwear.
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 measure, Decree no. 7.756, came into power with its publication in the Official Gazette on 15 June 2012 and stayed in effect until 31 December 2013. The period has been prolonged by Decree no. 8.167/2013 until 31 December 2015.