Not submitting this movie to the Oscars was a bad move
Instead Portugal went with a documentary about portuguese author Jose Saramago, "Jose e Pilar", which is a good movie too, but stood no chance by the usual standards of the Academy.
The main reason that people who supported "Jose e Pilar" presented was the fact that Raoul Ruiz wasn't portuguese, hence the nod/award wouldn't exactly go to Portugal. Still it is definitely a portuguese film, with portuguese production, portuguese cast and crew, set in Portugal... And an excellent film!
I know a lot of people don't give a *beep* about the Oscars (and rightly so), but for a country like Portugal which has zero budget for its cinema (and for art in general), a nod would be kind of a big deal and could contribute to a change.
They missed a great chance here, as proven by lots of critics circles and associations, like the Satellite Awards and the Toronto Film Critics, who named it Best Foreign Language Picture. Plus, the director died that year, and let's face it, we all know how that can raise oscar buzz.
If "Misterios de Lisboa" was submitted, "A Separation" would finally have some competition.