Start Merchant Marine ocean freight has reduced AFRMM tax

Merchant Marine ocean freight has reduced AFRMM tax

April 26, 2022 2:43 pm to 2:43 pm
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World Merchant Marine

The Additional Freight for Merchant Marine Renovation was created to support the development of the sector 

The new value of the Additional to Freight for Merchant Marine Renovation (AFRMM), reducing the value of the import tax. This occurred with the enactment of the vetoed parts of Law No. 14,301 of January 7, 2022 in the Federal Official Gazette on March 25, 2022. The tax's main function is to support the reconstruction of the fleet and the Brazilian shipbuilding and repair industry .

So the values look like this:

  • Long haul navigation (valid for the import) – 8% (was 25%);
  • navigation of cabotage – 8% (was 10%);
  • River and lake navigation, during the transport of liquid bulk in the North and Northeast Regions – 40% (continued);
  • River and lake navigation, when transporting solid bulk and other cargo in the North and Northeast Regions – 8% (was 40%).

“This reduction will be important to reduce the cost of the entire logistics chain in Brazil”, comments Helmuth Hofstatter, CEO of Logcomex. "With that, the tendency is that the products end up reducing for the final consumer".

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To calculate the AFRMM, it is necessary to apply the tariff on the amount charged for shipping. In case one Import has a freight (adding all the aforementioned costs) of R$2,000.00, it will be necessary to apply the percentage of 8% + R$21.20 of Merchant System Utilization Fee, which will result as follows:

  • Shipping = R$2,000.00;
  • AFRMM (Long Course) = 8%;
  • Merchant System Usage Fee: R$ 21.20;
  • (2000 x 0.08) + 21.20 = R$ 181.20.

Before, this amount to be paid would be R$521.20. To help calculate the import taxes, Logcomex developed the spreadsheet with import cost calculation. Downloading is free. 

About Logcomex

Founded in 2016 by entrepreneurs Helmuth Hofstatter Filho and Carlos Souza, Logcomex is a startup that aims to organize global trade information to transform the way companies do business. Offering automation and Big Data products for all links in foreign trade, Logcomex operates on two fronts: commercial intelligence (market information, bringing Brazilian import data, for example) and task automation (with organization and centralization of client). Source: Logcomex

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