ANNOUNCEMENT 03 Apr 2012In April 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 3 April 2012 (in Portuguese): http://www.desenvolvimento.gov.br/sitio/interna/noticia.php?area=1¬icia=11422
Decree no. 7.709 of 3 April 2012, published in Official Gazette on 4 April 2012 (in Portuguese): http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7709.htm
On 3 April 2012, the Brazilian government decided in Decree no. 7.709 to apply a margin of preference for the public procurement of nationally produced backhoes and motor graders of 10% and 18%, respectively.
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 measure).
The measure, Decree no. 7.709, came into power with its publication in the Official Gazette on 4 April 2012 and was supposed to stay effect until 31 December 2015. On 12 November 2012, the margins were increased by Decree no. 7.841. Please, see related measure no. 9375 under Related Measures.