ANNOUNCEMENT 12 Feb 2014

In February 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. 8.194 of 12 February 2014, published in the Official Gazette of 13 February 2014, pp.1-3: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?data=13/02/2014&jornal=1&pagina=1&totalArquivos=148


Inception date: 13 Feb 2014 | Removal date: 14 Dec 2015
Still in force

Public procurement preference margin

On 12 February 2014, the Brazilian government decided in Decree no. 8.194 to apply a margin of preference of up to 25% for the public procurement of various types of goods belonging to the information technology sector (e.g., phones). There is to be a margin of 15% when a good is produced and a further 10% in cases where it was 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 15% or 25%. Brazil's preference 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. 8.194) came into power on 13 February 2014 and lasts until 31 December 2015.