Published on Tuesday (11) in the Federal Official Gazette, Normative Instruction 10 from the Ministry of Economy reduced the barriers to the presence of external companies in federal bids. The new rules will take effect on May 11, 2020.

According to the Normative Instruction, foreign companies must open a National Corporate Taxpayer Registry (CNPJ) in Brazil only in case of winning the bidding process. Therefore, foreign suppliers can freely participate in the bids, only needing to constitute a legal representative in the country in the execution of the contract.

To participate in a national public bidding process, the only requirement will be the inclusion of the foreign company in the Unified Supplier Registration System (SICAF).

The measure, informed the ministry, will affect 99% of the public procurement processes of the Federal Executive Branch, including purchases of common goods and services, currently carried out through electronic trading.

In September, the government had removed the sworn translation requirement for the SICAF’s registration of the foreign company. According to Decree 10,024 / 2019, the requirements for qualification with free translation are now accepted for joining the System. Only if the winner of the bid is a foreigner, sworn translation will be mandatory for the signing of the Contract or the Price Registration Draft.

Public purchases by the federal government are carried out through the portal Comprasnet. With the new rules, it will be possible to access the system and register for tenders anywhere in the world. The bidding platform will be translated into English in the near future, to facilitate the participation of international suppliers.

During the World Economic Forum, in Davos, Switzerland, in January, the Minister of Economy, Paulo Guedes, had announced the intention of Brazil to adhere to the Public Procurement Agreement (GPA) of the World Trade Organization (WTO). With 48 member countries so far, GPA aims to promote the mutual opening of government purchases (made by the public sector), regardless of origin, imposition of barriers for imported items or preference margin for domestic products.

In Brazil, according to data from the Brazilian Institute of Geography and Statistics (IBGE) from the year 2012, health expenditures represented around 8.8% of the Gross Domestic Product. The distribution of government spheres in health service financing distributed by 47.8% at the federal level, 21.41% at the state level and 30.8% at the municipal level. In 2012, the public sector in Brazil represented around 42% of health spending.

In addition, data from the year 2015 showed that the public sector was then responsible for 36% of the total 450 thousand hospital beds. Nowadays, 46% of the Health System is supported by the Government through the Unified Health System.

The recent changes represent huge business opportunities for foreign companies wishing to enter the Brazilian market. In order to market medical devices in Brazil companies must be in compliance with ANVISA and possibly other Brazilian Regulatory Bodies.

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Font: Agência Brasil

DOMO Salute Team