ANNOUNCEMENT 17 Jan 2014

In January 2014, the government of Brazil announced a change in the price advantage granted to domestic producers in certain public tenders.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Decree no. 8.185 of 17 January 2014, published in the Official Gazette of 20 January 2014, pp. 9-10: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?data=20/01/2014&jornal=1&pagina=9&totalArquivos=92


Inception date: 20 Jan 2014 | Removal date: 20 Dec 2015
Still in force

Public procurement preference margin

On 17 January 2014, the Brazilian government decided in Decree no. 8.185 to apply a margin of preference of up to 25% for the public procurement of airplanes. There is to be a margin of 9% in cases when an airplane is produced and a further 16% if it were developed in Brazil.
 
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 of 9% or 25%. Brazil's preferential margins-scheme was introduced by Law no. 12.349/2010 in the realm of the Plano Brasil Maior, i.e., Greater Brazil Plan (see Related Measures).
 
The airplanes affected by this policy are classified under the Mercosur Common Nomenclatures (NCM) 8802.30.31, 8802.30.39 and 8802.40.90.
 
The measure (Decree no. 8.185) came into power on 20 January 2014 and lasts until 31 December 2015.

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AFFECTED PRODUCTS