In February 2013, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.



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Decree no. 7.903 of 4 February 2013, published in Official Gazette on 5 February 2013 (in Portuguese):

Ministry of Planning news item of 5 February 2013 (in Portuguese):

Inception date: 05 Feb 2013 | Removal date: 05 Jan 2016

Public procurement preference margin

On 4 February 2013, the Brazilian government decided in Decree no. 7.903 to increase the margins of preference for the public procurement of nationally produced information technology goods.
The margin of preference for the following NCM-items is 15% (NCM, i.e., Mercosur Common Nomenclature):

  • Various IT systems with switches (NCM 8517.62.3 - all codes)
  • Various routers (NCM 8517.62.4 - all codes)
  • Various wired data (voice, image etc.) reception and transmission tools (NCM 8517.62.5 - all codes)
  • Various digital emitters with incorporated receptors (NCM 8517.62.7 - all codes)
  • Various other tools (NCM 8517.62.9 - all codes)
  • Various parts, including printed circuits (NCM 8517.70 - all codes)

There is also an 'additional margin of preference' of 10% for those products that have not only been produced but also developed in Brazil.
A preference margin means that if the lowest bid comes from a foreign company, the government will hire a domestic contractor 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 BrazilPlan (see related measure).
The measure, Decree no. 7.903, came into power with its publication in the Official Gazette on 5 February 2013 and lasts until 31 December 2015.