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Ordinance 976/2022 provides for 100% digital and free access to the cabotage stimulus program
On 3 August 2022, the Ministry of Infrastructure (MINFRA) published Ordinance 976, of 27 July 2022. The regulation outlines the procedures for the qualification of Empresa Brasileira de Navegação – “EBN” (Brazilian Shipping Company) and Empresa Brasileira de Navegação (Condicionada) – “EBN-CON” (Brazilian Shipping Company with conditioned authorisation) in the cabotage incentive program termed “BR do Mar”. The initiative, launched by the government last January through Law 14,301/2022, aims to attract foreign investment and tonnage to increase domestic maritime transport’s market share and competitiveness.
EBN and EBN-CON
In line with the previous regulation, MINFRA Ordinance 976/2022 defines EBN as a legal entity constituted under Brazilian legislation, headquartered in the country, and authorised to operate waterway transport with its own or chartered vessels. On the other hand, EBN-CON stands out as a company whose operating authorisation, according to an act of the Executive Branch, is conditioned to i) the exclusive fulfilment of long-term transport contracts or ii) the exclusive provision of special cabotage operations by a period of 36 months, renewable for up to 12 months. Both conditions have not yet been regulated.
The license to operate as an EBN or an EBN-CON, granted by the National Waterway Transport Agency (ANTAQ), is a prerequisite to qualify companies for the BR do Mar. The application is made to the National Secretariat of Ports and Waterway Transport (SNPTA).
Applications for the BR do Mar
EBN and EBN-CON willing to join the BR do Mar program can apply using the forms attached to the Ordinance and making the following documents available in digital format to the SNPTA through the MINFRA website, free of charge:
• Power of attorney or instrument with general or specific powers issued by the company to the requesting representative
• Authorisation to operate as an EBN or an EBN-CON, granted by ANTAQ
• Proof of federal tax compliance (debt clearance certificates)
• Detailed report with information related to the operation of EBN/EBN-CON in Brazil, observing the parameters listed in Annex C of Ordinance 976/2022
Qualification and disqualification
The Brazilian Navy’s Department of Navigation and Waterways (DNHI) is competent for initiating the administrative process to qualify companies in the BR do Mar. DNHI is responsible for following up and monitoring the program’s implementation, development, maintenance and evolution, as well as for preparing periodic performance reports through analysis of data gathered by the SNPTA from qualified EBNs and EBN-CONs every six months.
The license for the BR do Mar is non-transferable; thus, transfer or assignment to another company is prohibited.
Qualified EBNs or EBN-CONs may lose their license if they i) do not meet the qualification conditions, ii) fail to forward the documentation and information to the SNPTA, or iii) obstruct or hinder SNPTA’s ability to monitor the policy. Ineligible companies will only be entitled to apply for a new license two years after disqualification.
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