Federal Government Publishes BR do Mar Program Regulation

Decree No. 12,555/2025 has been published to regulate Law No. 14,301/2022, which established the BR do Mar Program (“BR do Mar”), setting forth the rules for the implementation, execution, and monitoring of measures to stimulate maritime transportation through cabotage (“Decree”).

The Decree defines the institutional roles of the authorities involved, consolidates the time chartering rules provided by law, and introduces significant developments in regulatory, labor, tax, environmental, and operational matters.

Below we highlight the main provisions set forth in the Decree:

Institutional Competencies

The Decree outlines the competencies of each regulatory body involved in the BR do Mar.

The Ministry of Ports and Airports (“MPor”) plays a central role in coordinating the program, being responsible for issuing company authorizations, establishing contractual clauses, and setting criteria for sustainable vessels.

The Brazilian National Agency for Waterway Transportation (“ANTAQ”) is responsible for granting authorization to companies to operate as Brazilian shipping companies (“EBNs”) in the cabotage market, approving the exceptional substitution of time-chartered vessels before the end of the informed period if their operation becomes unfeasible, and supervising operations under the BR do Mar.

Of note is the possibility for ANTAQ to grant conditional authorization to companies seeking to participate in the BR do Mar under the following scenarios: (i) provision of services under long-term transport contracts; and/or (ii) exclusive performance of special cabotage operations, for up to 36 months, renewable for an additional 12 months.

The Brazilian Maritime Authority remains responsible for establishing safety requirements for the entry and stay of foreign-flagged vessels in Brazil.

BR do Mar Enrollment

To participate in the BR do Mar, companies must submit a request to the MPor. The specific documentation, procedures, and deadlines will be established by a forthcoming administrative act.

The applicant must (i) be authorized by ANTAQ to operate as a Brazilian shipping company or hold a conditional authorization; (ii) be in good standing with federal taxes; and (iii) periodically submit operational information in Brazil, as further regulated by the MPor.

The authorization may be revoked in the event of noncompliance with any of the requirements above.

The Decree sets out four scenarios under which time chartering of foreign vessels is permitted: (i) fleet expansion; (ii) replacement of a vessel under construction in Brazil or abroad; (iii) provision of services under long-term transport contracts; and (iv) exclusive performance of special cabotage operations.

As a rule, only vessels owned by a Brazilian shipping company or its wholly owned foreign subsidiary may be time chartered, provided they are under a bareboat charter arrangement.

Each chartering scenario is subject to specific requirements in terms of proportionality, time limits, and operational conditions, as outlined below.

Fleet Expansion Chartering

The Decree allows time chartering for fleet expansion, capped at 300% of the deadweight tonnage (“DWT”) of the company’s Brazilian-flagged vessels engaged in cabotage, depending on the sustainability profile involved. The applicable ratios are as follows:

• 50% of DWT of non-sustainable vessels to charter non-sustainable vessels;

• 100% of DWT of non-sustainable vessels to charter sustainable vessels;

• 200% of DWT of sustainable vessels to charter non-sustainable vessels; and

• 300% of DWT of sustainable vessels to charter sustainable vessels.

The Decree also allows for the assignment of tonnage rights under bareboat charter agreements with a minimum term of 36 months and excludes inactive vessels from the DWT calculation.

Substitution of Vessel Under Construction in Brazil

This modality allows the time chartering of a similar vessel for up to 36 months, limited to 200% of the DWT of the vessel under construction.

The initial authorization is granted for six months, renewable for successive equal periods, provided the construction contract is effective and progress complies with the criteria set by ANTAQ.

The chartered vessel may continue operating in Brazil even if the domestic vessel is delivered earlier.

Substitution of Vessel Under Construction Abroad

This modality allows time chartering of a similar vessel limited to 100% of the DWT of the vessel under construction abroad.

It requires stricter documentation, including a copy of the construction contract (with sworn translation), proof of at least 10% completion of the physical and financial schedule, and a performance bond of up to BRL 10 million.

The authorization is valid for up to 36 months, and failure to deliver the constructed vessel within this period may trigger administrative proceedings and result in disqualification from the BR do Mar.

Long-Term Transport Contract Chartering

In this case, only sustainable vessels may be chartered. The transport contract must have a minimum term of five years and provide for exclusive, continuous, and regular cabotage services. The vessels engaged in the above referred long-term contracts will not be eligible to block circularizations for the engagement of foreign vessels in Brazilian cabotage.

Companies not yet authorized by ANTAQ may apply for conditional authorization, provided they submit documentation establishing the contractual intent between the carrier and the shipper.

Special Cabotage Operations Chartering

This scenario applies to cargo types, routes, or markets not yet established in Brazilian cabotage. The authorization is valid for up to 36 months, renewable for an additional 12 months.

Applicants must submit a detailed market study to be assessed by ANTAQ, taking into account factors such as innovation, cargo characteristics, and route feasibility. The vessel must be proportionate to the projected demand and may not be used to prove the availability of Brazilian-flagged tonnage under applicable law.

Mandatory Insurance and Reinsurance

The Decree mandates the procurement of insurance and reinsurance for foreign-flagged vessels to cover operational, environmental, labor, and civil liability risks.

The required coverages include: (i) hull, machinery, cargo, and onboard equipment; (ii) wreck removal; (iii) liability for navigation-related accidents and third-party damage, including port operations; (iv) wage and labor indemnities, including repatriation of foreign crew; and (v) compensation for occupational illness, injury, disability, and death.

These coverages must be in force at the time of the chartering request and may be procured in Brazil or abroad.

Sustainable Shipping Incentives

Only sustainable vessels are eligible for chartering in connection with long-term contracts.

The Decree defines sustainable vessels as those that meet environmental and social criteria, prioritize clean energy sources, and ensure dignified working conditions onboard.

Provision of onboard internship

The decree formalizes the mandatory provision of onboard internship positions to students graduating from courses in the professional maritime education system on Brazilian and foreign vessels bareboat chartered, with or without flag suspension, and on vessels under time charter in operation in Brazilian waters. The Maritime Authority will determine the minimum number of internship positions for each type of vessel and operation, taking into account the accommodation capacity and operational limitations of each vessel.

REB Registration and Transitional Rules

The Decree amends the rules governing the Special Brazilian Registry (“REB”), including the creation of a pre-registration mechanism for vessels under construction. It also establishes sanctions such as the cancellation of the REB status in case of loss of sustainability classification.

For registration in the REB, in addition to the request made by the Brazilian shipping company, the owner or charterer of the Brazilian vessel, or by the Brazilian investment company in navigation,  attachment of the Negative Certificate of Federal Tax Debts and Active Debt of the Union, as well as the Certificate of Compliance with the FGTS (Severance Indemnity Fund), is required.

Tax Aspects

The text also includes updates to the legislation regulating the Additional Freight for Renewal of the Merchant Marine (“AFRMM”) and the Brazilian Merchant Marine Fund (“FMM”).

Among the changes is the implementation of new tax rates, which were created by Law No. 14,301/2022:

• 8% for long-haul and coastal shipping;

• 40% for inland and lake navigation involving the transport of liquid bulk cargo in the North and Northeast regions;

• 8% for inland and lake navigation involving the transport of solid bulk cargo and other goods in the North and Northeast regions.

In addition, the decree regulates the AFRMM exemption until 2027 for cargo shipping originating from or destined for the North or Northeast of Brazil, as provided for in Law No. 14,301/2022.

Finally, the decree establishes that the Merchant Shipping Usage Fee (“TUM”) shall not apply to cargo exempt from the AFRMM or transported via coastal, inland, or lake navigation with origin or final destination in the North or Northeast regions.

*This content was prepared with the collaboration of interns Victória Ribas and Rafael Pierotti.