The Ministry of Economy new Normative Instruction nº 10/2020 will come into force on May 11, 2020 and is part of several changes promoted to facilitate the participation of foreign companies in Brazilian public tenders. This new procedure should cover 99% of the public procurement processes of the Federal bodies, including the purchase of common goods and services made through electronic trading and bidding works by the Differentiated Contracts Regime (RDC).

According to the new regulation, foreign suppliers that don’t have operations in Brazil may participate directly in the bidding procedures upon the direct register in the Unified Supplier Registration System (SICAF), and must also constitute legal representatives with specific powers to receive notices and respond administratively and judicially.

The SICAF was updated so that foreign companies can register without the need to have a Brazilian tax registration (CNPJ – National Register of Legal Entities). The registration also doesn’t require the submission of sworn translations of the documentation, with free translations being sufficient.

The formalization of legal representation and the presentation of sworn translations will only be required before the beginning of the execution of the contract and no longer during the dispute phase.

In the case of foreign companies that already have a decree of authorization from the Executive Branch and that operate in the country, they must register in SICAF with the identification of the CNPJ.

Foreign suppliers may participate in Brazilian government purchases from around the world, using the Federal Government’s public procurement portal – named Comprasnet.

Our Public Procurement and Public Tenders Legal Department can assist foreign clients interested in obtaining further clarification on new regulations and their application to their business.

 

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