Brazilian government simplifies foreign participation in public biddings

The Normative Ruling No. 10/2020 published yesterday (11/02) by the Brazilian federal government will allow foreign companies to participate in national public biddings directly, without a national representative.

The regulation includes a series of changes promoted by the government in order to simplify the participation of foreign companies in tenders and attract more investments, especially in the infrastructure sector.

Thus, as of May 11, foreign companies that do not operate in Brazil will be able to register in the Unified Supplier Registration System (Sicaf), with the presentation of equivalent documents to those required by Federal Law No. 8,666/1993, in simple translation, and participate in national tenders.

The new Normative Ruling reaches purchases made by electronic auction and, also, works auctioned by the Differentiated Contracting Regime (RDC), initially created for works of the World Cup and Olympics, today the RDC is used by large contractors, such as the National Infrastructure Department of Transportes (Dnit), Planning and Logistics Company (EPL), Valec Engenharia, Construções e Ferrovias S.A. and Infraero.

It is worth mentioning that Federal Law No. 8,666/1993 already allowed foreigners to participate in national tenders, provided that the respective contracting entity foresees such possibility in the bidding notice. What the Normative Ruling innovates, therefore, is to allow the registration of foreign companies, that do not operate in the country, in Sicaf and with simplified documentation, without sworn translation and consularization requirements.

The requirements to have a legal representative in Brazil and to submit documents with sworn translation and consularized remains only for the purpose of signing the contract, in case the foreign company is the winner of the public bidding.

Despite facilitating participation in bidding procedures, reducing the time needed to prepare proposals, the Normative Ruling does not eliminate totally the normal requirements for public bidding.

Access the Normative Ruling.