The Freight Surcharge for Renewal of the Merchant Navy Was Created to Support the Development of the Sector
The new amount of the Freight Surcharge for Renewal of the Merchant Navy (AFRMM) is now in effect, reducing the import tax amount. This happened with the promulgation of the vetoed parts of Law No. 14,301 of January 7, 2022, published in the 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.
Thus, the amounts are as follows:
- Long-Distance Navigation (applies to import) – 8% (was 25%);
- Cabotage Navigation – 8% (was 10%);
- River and Lake Navigation, for the transportation of liquid bulk in the North and Northeast Regions – 40% (remained the same);
- River and Lake Navigation, for the transportation of solid bulk and other cargo in the North and Northeast Regions – 8% (was 40%).
“This reduction will be important for reducing the cost of the entire logistics chain in Brazil,” comments Helmuth Hofstatter, CEO of Logcomex. “As a result, the tendency is for products to end up becoming cheaper for the final consumer.”
To calculate the AFRMM, it is necessary to apply the fee on the amount charged for freight. If an 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 for Merchant System Usage Fee, which will result as follows:
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- Freight = R$2,000.00;
- AFRMM (Long Distance) = 8%;
- Merchant System Usage Fee: R$ 21.20;
- (2000 x 0.08) + 21.20 = R$ 181.20.
Previously, this amount to be paid would be R$521.20. To assist in the calculation of import taxes, Logcomex developed a spreadsheet for calculating import costs. The download 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 conduct business. Offering automation and Big Data products for all links in foreign trade, Logcomex operates in two areas: commercial intelligence (market information, bringing data from Brazilian imports, for example) and task automation (with organization and centralization of customer information). Source: Logcomex
