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

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.

AFFECTED SECTORS

 
432 439 442 444 445 448 449 481

AFFECTED PRODUCTS

 
840510 841319 841320 841330 841340 841350 841360 841370 841381 841391 841392 841410 841420 841430 841440 841451 841459 841460 841480 841490 841510 841520 841581 841582 841583 841590 841810 841821 841829 841830 841840 841850 841869 841899 841911 841919 841920 841931 841932 841939 841940 841950 841960 841981 841989 841990 842310 842320 842330 842381 842382 842389 842390 842911 842919 842920 842930 842940 842951 842952 842959 845610 845630 845690 845710 845720 845730 845811 845819 845891 845899 845910 845921 845929 845931 845939 845940 845959 845961 845969 845970 846011 846021 846031 846090 846130 846140 846150 846190 846210 846221 846229 846231 846239 846241 846249 846291 846299 846310 846330 846390 846410 846420 846490 846510 846591 846592 846593 846594 846595 846599 846610 846620 846630 846691 846692 846693 846694 846711 846719 846721 846722 846729 846781 846789 846791 846792 846799 846810 846880 846890 847410 847420 847431 847432 847439 847480 847490
(+ 128 more)