Brazil's Ministry of Infrastructure defines procedures and guidelines for the qualification of EBN and EBN-CON in BR do Mar Program
On August 3rd, 2022, Brazil’s Ministry of Infrastructure published Ordinance No. 976/2022, which regulates Law No. 14.301/2022 (“BR do Mar”). The Ordinance establishes procedures and guidelines to qualify Brazilian Shipping Companies (EBNs) and Brazilian Shipping Companies with Conditional Authorization (EBN-CONs) for the BR do Mar program, and claryfing several aspects of the Law.
The Ordinance defines EBN-CON as a legal entity incorporated under Brazilian law and headquartered in the country, whose purpose is waterway transport and is authorized to operate in cabotage transport by the competent, based on the following charter cases:
- exclusive service of long-term transport contracts, under the terms set out in an act of the Federal Government (pending regulation);
- exclusive provision of special cabotage operations, for a period of 36 months, renewable for up to 12 months, pursuant to an act of the Federal Government (pending regulation).
EBN and EBN-CON companies may submit their qualification request for BR do Mar to the National Secretariat of Ports and WaterwayTransport (“SNPTA”), once attended the documentation requirements contained in Annex A and B of Ordinance No. 976/2022.
The submission of supporting documentation will be processed by the Brazilian Navy’s Department of Navigation and Waterways(“DNHI”). Once qualified, EBN or EBN-CON companies will receive anon-transferable grant, which cannot be transferred or assigned to other company.
A periodic monitoring procedure was also established, for the purpose of monitoring and evaluating the Program, through which the qualified company must provide certain information every sixmonths to the SNPTA.
At its turn, DNHI will monitor the implementation, development, maintenance, and evolution of BR do Mar, as well as drafting and publishing periodic reports demonstrating the Program’s performance.
Finally, Ordinance No. 976/2022 establishes the program’s disqualification criteria, which applies in the following situations:
- companies that fail to comply with the qualification conditions;
- companies that fail to submit the documentation and information requested every six months;
- companies that obstruct or hinders SNPTA’s monitoring policy.
Relevant to note that companies qualified for BR do Mar program are not exempt from complying with other rules and requirements set by the National Agency of Waterway Transport (ANTAQ).
The Ordinance No. 976/2022 is available here and Law No. 14.301/2022 (BR do Mar), here, both in portuguese.
The Oil, Gas & Offshore and Maritime teams are available in case of doubts.