In February of this year, the Government adopted important measures through the Normative Instructions (IN) 10/2020 allowing foreign companies, without local presence in Brazil, to register in the SICAF system (Sistema de Cadastramento Unificado de Fornecedores). SICAF is a register that contains the records of legal qualification, tax compliance and economic-financial qualification of companies allowed to participate in public bids in Brazil.
Prior to such measures, foreign companies had to establish legal representation and obtain a tax ID number (CNPJ) in Brazil prior to be allowed to register in the SICAF system and consequently, be allowed to participate in public bids, which was frequently the main bottleneck for foreign companies wanting to participate in public bids.
The new measures were supposed, as per the IN 10/2020, to enter into force on May 11, 2020. With the publication of the IN 38/2020 on May 13, 2020, the new measures will now enter into force only on August 1, 2020.