ANNOUNCEMENT 14 May 2013In May 2013, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.
NUMBER OF INTERVENTIONS
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
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#anexoi
On 14 May 2013, the Brazilian government decided in Decree no. 8.002 to introduce a margin of preference of 20% on tractors with continuous tracks. The good carries the Mercosur Common Nomenclature (NCM) 8429.11 and will be added to Decree no. 7.840/2012 which introduced the margins of preference on vehicles and tools for agricultural use (see Related Measures).
A preferential margin 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 (see Related Measures).
The measure, Decree no. 8.002, came into power on 15 May 2013 and stays effect until 31 December 2015.