BR do Mar: gov’t issues decree allowing companies to enroll in the cabotage program

Seven months after sanctioning the law that established the incentive program for cabotage navigation, known as BR do Mar, the Federal Government issued, on August 3rd, a decree that defines the rules for the qualification of companies that may enroll in the program.

According to the Ministry of Infrastructure (MInfra), Brazilian companies in the navigation and conditioned navigation market can now access the Federal Government platform to apply for authorization.

According to MInfra, the process is 100% digital, free and simple. It involves, among other things, verification of regular status regarding federal taxes and authorization provided by the National Agency for Waterway Transportation (Antaq) to operate as a navigation firm.

The BR do Mar program creates incentives for companies to charter vessels on time by allowing them to their foreign flags and reducing costs. Nevertheless, companies will only be able to charter ships owned by a foreign subsidiary of a Brazilian shipping company.

For the government, these standards guarantee that there will be an extensive enough fleet to operate cabotage navigation in Brazil. However, in addition to the decree, Brazil’s executive branch must still regulate the law.

However, disagreements between the Ministries of Economy and Infrastructure over the definition of travel for the exclusive fulfillment of long-term contracts and special operations caused the publication of the guidelines to be postponed.

Expansion

According to the Ministry of Infrastructure, with the new rules included in the cabotage program, it will be possible to expand the capacity of the maritime fleet dedicated to cabotage by 40% in the next three years, excluding those operating in the oil and derivatives market.

The BR do Mar provides that companies will be able, after a transition period, to rent bareboat vessels (changing the ship’s foreign flag to Brazilian) without having their Brazilian ships. However, getting to this place will take four years.

Source: A Tribuna

To read the full original article, please go to: https://www.atribuna.com.br/noticias/portomar/br-do-mar-governo-publica-portaria-para-habilitar-empresas-em-programa-de-cabotagem

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