What is AFRMM and How It Impacts Import Costs
Companies involved in maritime imports often encounter the acronym AFRMM.
Although many businesses see AFRMM as just another operational expense, understanding how it works is essential for calculating the true cost of importing goods.
In this article, we explain what AFRMM is, how it is calculated, and why it matters.
What Does AFRMM Mean?
AFRMM stands for:
Additional Freight Charge for Merchant Marine Renewal.
It is a contribution designed to support the development of Brazil’s maritime industry and merchant fleet.
The collected amount is a source of revenue for the Merchant Marine Fund (FMM).
When is AFRMM Charged?
AFRMM applies to waterborne transportation operations.
In practice, it is commonly charged on:
- international maritime imports
- domestic coastal shipping
- river and inland waterway transportation
For importers, AFRMM is mainly associated with ocean freight shipments.
How is AFRMM Calculated?
AFRMM is calculated based on the international freight value.
For long-haul international maritime imports, the current rate is:
8% of the international freight cost.
Example:
- International freight: USD 10,000
- AFRMM: USD 10,000 x 8%
- AFRMM: USD 800
As a result, AFRMM should be considered in import financial planning and in the total landed cost calculation.
Who Pays AFRMM?
In most cases, the importer is responsible for paying AFRMM.
Payment is processed through Brazil’s Mercante System, which is integrated into foreign trade operations.
Without payment confirmation, customs procedures may be delayed.
How Does AFRMM Impact Import Costs?
Many companies focus only on:
- product value
- freight cost
- insurance
But overlook important expenses such as:
- AFRMM
- storage fees
- terminal handling charges
- port expenses
- customs brokerage fees
- taxes
Ignoring these costs can distort the real landed cost of imported products.
How to Reduce Financial Impact
Although AFRMM is a mandatory charge, companies can improve cost predictability through a few practices.
Logistics planning
Selecting the most efficient routes and transportation options.
Cost simulation
Running complete import cost projections before shipment.
Integrated operations management
Tracking all import-related costs in one platform.
Landed cost control
Understanding how each expense affects the final product cost.
How Pixel8 Helps
ComexOS provides visibility into both operational and financial aspects of import operations.
Companies can:
- track logistics expenses
- calculate landed cost
- monitor shipments
- manage financial data
- centralize operational information
All within a single environment.
Conclusion
AFRMM is one of the relevant costs in international maritime transportation.
Although often viewed as just another fee, its financial impact can be significant when not properly considered.
Companies that maintain complete visibility over import costs make better decisions, reduce surprises, and improve operational predictability.
Looking for better control over your import costs?
Talk to our team and discover how Pixel8 solutions help companies manage international trade operations more efficiently.
