ANNOUNCEMENT 12 Nov 2012In November 2012, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.
NUMBER OF INTERVENTIONS
Decree no. 7.841 of 12 November 2012, published in the Official Gazette of 13 November 2012, p. 6: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=6&data=13/11/2012
Updated version of Decree no. 7.709 of 3 April 2012, published in the Official Gazette of 4 April 2012: http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Decreto/D7709.htm
On 12 November 2012, the Brazilian government decided in Decree no. 7.841 to increase the margins of preference for the public procurement of nationally produced backhoes and motor graders. The margins went from 10% to 15% for backhoes and from 18% to 25% for motor graders.
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 as part of the Plano Brasil Maior,i.e., Greater Brazil Plan. The margins of preference on the two above mentioned goods were originally introduced by Decree no. 7.709/2014. For more information on this subject, please consult the links under Related Measures.
The measure, Decree no. 7.841, came into power on 13 November 2012 and stays in effect until 31 December 2015.