BRAZIL Law and Practice Contributed by: Godofredo Mendes Vianna, Camila Mendes Vianna Cardoso and Lucas Leite Marques, Kincaid | Mendes Vianna Advogados
the suspension or cancellation of activities in Brazil. In addition to administrative sanctions, civil and criminal liability may be attributed to a party that violates the ANP’s resolutions. In accordance with the ANP’s regu - lations concerning the sulphur limit for marine fuel, the DPC also issued a normative resolution with the guidelines of IMO 2020 (Circular 7/2019). The DPC is responsible for supervising vessels and verifying whether the fuel complies with IMO 2020, represent - ing the Brazilian maritime authority. 9.3 Trade Sanctions Brazil has not incorporated international trade sanc - tions as part of its domestic law. However, as many large Brazilian companies are listed in the US and/or UK, it is not unusual to see references to sanctions clauses in contracts. 9.4 International Conflict Although Brazil exports commodities and imports a substantial quantity of fertilisers, sometimes connect - ed with the regions at war, normally those carriages and contracts are subject to English law and there are no relevant cases dealing with legal aspects related to the war in Ukraine. 10. Additional Maritime or Shipping Issues 10.1 Other Jurisdiction-Specific Shipping and Maritime Issues In 2022, the Brazilian Congress enacted a Federal Law amending the rules applicable to cabotage transpor - tation, bringing changes for the maritime carriage between Brazilian ports, and providing flexibility for the operation of foreign flag vessels in some circum - stances. Such Law is commonly called the “BR do Mar”. BR do Mar meaning, in English, BR of the Sea, a nickname that assigns such law as an important federal highway of the sea, connecting domestic ports through ocean carriage and waterway systems, similarly to the inland highway system for road transportation.
The BR of the sea updates the former regulatory framework of 1997, but it was only recently, on July 2025, that this new law was officially regulated. After more than three years of waiting a Federal Decree was recently published, formally regulating the “BR do Mar” programme and establishing detailed rules, sustainability criteria for vessels, and new parameters for fleet expansion under the programme, launching a new era for cabotage in Brazil. The Decree was followed by regulations issued by the National Agency for Waterway Transportation (ANTAQ), updating the rules over the chartering of vessels and obtaining authorisation to operate as a Brazilian Shipping Companies (EBNs), observing the innovations implemented by the new BR do Mar. For decades, the use of foreign-flagged vessels in Brazil in domestic trade was only admitted where Brazilian-flagged vessels were not available or when the shipping company owned Brazilian tonnage. This regime has substantially changed with the new law, which now allows more flexibility for foreign- flagged vessels to trade in Brazilian cabotage. One of the main changes is the possibility for Brazil - ian shipping companies to time-charter vessels from foreign entities through the programme to Foster the Cabotage Transportation, such as: • fleet expansion; • replacement of vessels being constructed or under repair; • for engagement in long-term contracts; and • for use in so-called “special cabotage operations”. The new law also provides a gradual increase in the number of foreign vessels that can be bareboat-char - tered by Brazilian shipping companies with suspen - sion of the original flag without the prior approval of ANTAQ, subject to limits established by the BR do Mar regulatory Decree. The BR do Mar programme also introduced the con - cept of Brazilian Investment Shipping Companies (EBINs), which are entities whose corporate purpose
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