Federal Court of Accounts (TCU) determines close supervision of foreign shipowners

At a plenary session held on 24 April 2019, the Ministers of the Brazilian Federal Court of Accounts (Tribunal de Contas da União – TCU, in Portuguese), determined, among other deliberations, that the National Agency for Waterways Transportation (Agência Nacional de Transportes Aquaviários – ANTAQ) increases the supervision of foreign shipowners operating in Brazilian waters.

TCU required that ANTAQ provides, within 90 days, an action plan for regulation and supervision of oceangoing navigation in Brazil, including the registration of foreign shipowners, freight rates and other services as well as comparative studies on ocean routes and tariffs charges by shipowners and norms for sanctions for unjustified suppression of scheduled port calls. The objective of the plan is to curb allegedly abusive practices in the services rendered by shipowners across Brazilian ports.

The decision originated from administrative proceedings launched by TCU regarding a complaint about unfair tariffs charged by a port terminal and omissions of the regulatory agency ANTAQ in monitoring the collection of Terminal Handling Charges (THC) and the performance of shipowners based abroad.

ANTAQ was also ordered to draw up, in 60 days, a plan aiming at curbing eventual malpractices and ensure that the amounts paid by cargo interests for THC were effectively those paid by shipowners to port operators. In addition, ANTAQ must, in 180 days, conclude comparative studies, inclusive in relation to foreign ports, on the reasonableness of the THC charged from the users of the Brazilian port system to establish a cap for this tariff.