ANNOUNCEMENT 03 Apr 2014

In April 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. 8.224 of 3 April 2014, published in the Official Gazette of 4 April 2014, pp. 2-3: http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?data=04/04/2014&jornal=1&pagina=2&totalArquivos=232


Inception date: 04 Apr 2014 | Removal date: 02 Jan 2016
Still in force

Public procurement preference margin

On 3 April 2014, the Brazilian government decided in Decree no. 8.224 to apply a margin of preference of up to 25% for the public procurement of capital goods. There is a margin of 15% or 20% if a good was produced, and a further 5% if 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. 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. 8224) came into power on 4 April 2014 and lasts until 31 December 2015.