The Additional Freight for the Renewing of the Merchant Marine (“AFRMM” – Adicional de Frete para a Renovação da Marinha Mercante) is a taxation established by Decree-Law nº 2,404. The taxation rules were set out by Law nº 10,893/2004.
Its legal nature is of a contribution for intervention in the economic domain (“CIDE” – Contribuição de Intervenção no Domínio Econômico). According to the Brazilian Supreme Court (“STF” – Supremo Tribunal Federal), this taxation is a parafiscal or special contribution, which differs from a tax and a usual charge.
The AFRMM is an additional charge over the freight charged for the transport of any type of cargo by Brazilian and international shipping companies operating in Brazil. The AFRMM is intended to finance, through the Merchant Marine Fund (“FMM” – Fundo da Marinha Mercante), the Federal Government support to the development of the Brazilian merchant marine and of the shipbuilding and ship repair industry.
With the changes introduced by the Laws nº 12,599/2012 and nº 12,788/2013, the Secretariat of the Federal revenue of Brazil (“RFB” – Receita Federal do Brasil) became the responsible for the administration of activities related to the collection, inspection, refund and reimbursement of AFRMM. On May 30, 2014, it was issued the Decree nº 8,257/2014, regulating the legal provisions relating to the exercise of jurisdiction by RFB. Therefore, the RFB is the responsible for analyzing and performing restitution and compensation relating to claims occurring on or after 05/30/2014. Requests made before this date must be filed with the FMM.
Decree-Law no. 5.543, regulates provisions of Law no. 10.893/2004
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