The AFRMM’s tax event is the effective beginning of the vessel unloading operation in a Brazilian port and it occurs over long haul shipping, cabotage or river and lake navigation.
The AFRMM is calculated based in the aquatic transportation compensation, and the following rates apply:
- 25% for long haul shipping (between Brazilian ports and foreign ports – maritime, river or lake);
- 10% for cabotage (between Brazilian ports);
- 40% for inland (river or lake) shipping (between Brazilian ports, when carrying liquid bulk in the North and Northeast regions
The Log-In’s AFRMM generation is 10% of its revenue from cabotage.
All Brazilian Shipping Companies may apply for reimbursement of AFRMM, as long as they prove the waterway transportation, whose origin or final destination is in any port located in the North or Northeast regions of the country, and follow the procedures Ordinance nº 72 of the FMM.
A Company that wants to qualify for reimbursement of AFRMM amounts must register itself in the Merchant Marine Fund Department, and fulfill all the requirements and procedures recorded by the Transport Minister’s Act.