Brazil: Law No. 14,301/2022 is published, and institutes the Cabotage Incentive Program (BR of the Sea)
Law No. 14,301/2022, which institutes the Cabotage Incentive Program – BR of the Sea, was approved by the President of the Republic, and published on January 7, 2022.
To be qualified for the program, interested companies must hold authorization from the National Agency of Waterway Transportation – ANTAQ to operate as a Brazilian Shipping Company – EBN in cabotage, among other requirements. Among the rules of the program, it should be noted:
- the participant EBN in BR of the Sea may time charter vessels from a foreign company that is its wholly owned subsidiary or of another EBN. There are specific situations in which this is allowed, e.g., for performance of long-term transportation agreements or to replace a vessel of a similar type under construction in Brazil.