In Portuguese Additional Freight for the Renovation of the Merchant Marine is named Adicional de Frete para Renovação da Marinha Mercante and often referred to by the abbreviation AFRMM.
It's a Brazilian tax created to support the development of the merchant marine and of the construction and recovery of the Brazilian naval industry.
The tax is levied upon unloading operations at all Brazilian maritime ports. However, there are a few exceptions where AFRMM does not apply:
- Unloading of goods from Mercosul.
- River or Lake transportation except liquid goods in bulk form transported to the North and Northeast regions of Brazil.
The freight value is the calculation basis for this tax. The AFRMM rate is charged as follows:
- 25% for long distance sea transport
- 10% for coastal transport
- 40% for the river and lake transportation of liquid goods in bulk form transported to the North and Northeast regions of Brazil.