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Coasting Trade Act An Act respecting the use of foreign ships and non-duty paid ships in the coasting trade 1992, c. 31 An Act respecting the use of foreign ships and non-duty paid ships in the coasting trade [Assented to 23rd June, 1992] Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: Short title 1. This Act may be cited as the Coasting Trade Act. 2. (1) In this Act, "Agency" « Office » "Agency" means the Canadian Transportation Agency;
"Canadian ship" « navire canadien » "Canadian ship" means a ship
"Canadian waters" « eaux canadiennes » "Canadian waters" means the inland waters within the meaning of section 2 of the Customs Act, the internal waters of Canada and the territorial sea of Canada;
"coasting trade" « cabotage » "coasting trade" means
where the carriage of the passengers is in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada, and
"enforcement officer" « agent de l'autorité » "enforcement officer" means a person designated pursuant to section 12 to be an enforcement officer for the purposes of this Act;
"foreign ship" « navire étranger » "foreign ship" means a ship other than a Canadian ship or a non-duty paid ship;
"in-transit call" « escale de transit » "in-transit call" means any call, other than an emergency or technical call, by a ship at any place where passengers go ashore temporarily but who re-board the vessel before the ship leaves that place or are transported by land to another location to re-board the same ship;
"licence" « licence » "licence" means a document, issued pursuant to this Act, authorizing a foreign ship or a non-duty paid ship to engage in the coasting trade while in Canadian waters or in waters above the continental shelf of Canada;
"master" « capitaine » "master", in relation to a ship, has the same meaning as in the Canada Shipping Act;
"non-duty paid ship" « navire non dédouané » "non-duty paid ship" means a ship registered in Canada in respect of which any duties and taxes under the Customs Tariff and the Excise Tax Act have not been paid;
"owner" « propriétaire » "owner", in relation to a ship, includes the person having for the time being, either by law or by contract, the rights of the owner of the ship as regards the possession and use thereof;
"resident in Canada" « résident du Canada » "resident in Canada" has the meaning given to that expression by section 250 of the Income Tax Act;
"ship" « navire » "ship" includes any description of vessel, boat or craft, including air cushion vehicles and dynamically supported craft, designed, used or capable of being used solely or partly for marine navigation without regard to method or lack of propulsion;
"technical call" « escale technique » "technical call" means any call, other than an emergency call or an in-transit call, that is for a purpose other than the embarking or disembarking of passengers.
(2) For the purpose of the definition "coasting trade" in subsection (1), a place above the continental shelf of Canada includes any ship, offshore drilling unit, production platform, artificial island, subsea installation, pumping station, living accommodation, storage structure, loading or landing platform, dredge, floating crane, pipelaying or other barge or pipeline and any anchor, anchor cable or rig pad used in connection therewith. (3) Any power, duty or function of the Minister of National Revenue or the Minister of Transport under this Act may be exercised or performed by any person authorized by that Minister, as the case may be, to do so and, if so exercised or performed, shall be deemed to have been exercised by that Minister. REGULATION OF FOREIGN SHIPS AND NON-DUTY PAID SHIPS 3. (1) Subject to subsections (2) to (5), no foreign ship or non-duty paid ship shall, except under and in accordance with a licence, engage in the coasting trade. (2) Subsection (1) does not apply in respect of any foreign ship or non-duty paid ship that is
Assistance in cases of distress (3) Nothing in this section precludes a foreign ship or a non-duty paid ship from rendering assistance to persons, ships or aircraft in danger or distress in Canadian waters. (4) Subsection (1) does not apply in respect of operations permitted by the United States Wreckers Act. (5) Subsection (1) does not apply to any ship that is owned by the Government of the United States and used for the sole purpose of transporting goods of Canadian or United States origin owned by the Government of the United States to supply Distant Early Warning Sites. Issuance of licence: foreign ship 4. (1) Subject to section 7, on application therefor by a person resident in Canada acting on behalf of a foreign ship, the Minister of National Revenue shall issue a licence in respect of the foreign ship, where the Minister is satisfied that
(2) For greater certainty, the issuance of a licence pursuant to subsection (1) does not affect the application of any law of Canada that imposes safety or pollution prevention requirements in respect of ships. Issuance of licence: non-duty paid ship 5. Subject to section 7, on application therefor by a person resident in Canada acting on behalf of a non-duty paid ship, the Minister of National Revenue shall issue a licence in respect of the non-duty paid ship, where the Minister is satisfied that
Terms and conditions of licence 6. (1) The Minister of National Revenue may issue a licence subject to any terms and conditions that the Minister considers appropriate, including, without restricting the generality of the foregoing, terms and conditions respecting
(2) Every licence shall set out the period of time for which it is valid, which period may not exceed
Suspension, cancellation or variation of licence (3) The Minister of National Revenue may, by order, suspend or cancel a licence or vary the terms and conditions of a licence where
7. The Governor in Council may, by regulation, fix the maximum number of licences that may be issued pursuant to sections 4 and 5. 8. (1) In relation to an application for a licence, the Agency shall make the determinations referred to in paragraphs 4(1)(a) and (b) and 5(a) and (b). (2) The Governor in Council may make regulations prescribing the criteria to be applied by the Agency for the making of the determinations referred to in subsection (1). 9. In making a determination referred to in subsection 8(1), the Agency may request from the applicant for the licence to which the determination relates, and from the owner of any Canadian ship or non-duty ship to which the determination relates, such information and documentation as the Agency deems necessary. 10. In order to carry out its function under this Act the Agency may collect information and keep records concerning the characteristics and uses of Canadian ships and non-duty paid ships. UNFAIR PRACTICES 11. (1) Where the Minister of Transport is of the opinion that a government of any country has engaged in unfair, discriminatory or restrictive practices with respect to the use of Canadian ships in commercial activities in waters of that country, the Minister of Transport and the Minister of Foreign Affairs shall seek elimination of those practices through consultations with the government of that country. (2) Where the consultations referred to in subsection (1) fail to result in the elimination of the practices referred to in that subsection, the Governor in Council may, on the recommendation of the Minister of Transport and the Minister of Foreign Affairs, take such action as the Governor in Council considers appropriate. 12. (1) For the purposes of enforcing this Act, the Minister of Transport may designate any person or class of persons as enforcement officers and shall furnish every enforcement officer with a certificate of that designation. Production of certificate of designation (2) In carrying out the duties and functions of an enforcement officer under this Act, an enforcement officer shall, if so requested, produce the certificate of designation referred to in subsection (1) to the person appearing to be in charge of any ship in respect of which the enforcement officer is acting. 13. (1) Where a ship contravenes subsection 3(1), the ship is guilty of an offence and is liable on summary conviction to a fine not exceeding fifty thousand dollars. (2) Where an offence is committed by a ship under subsection (1) on more than one day or is continued by the ship for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued. 14. (1) Where a ship is charged with an offence under section 13, any court in Canada that would have had jurisdiction in respect of the offence if that offence had been committed within the limits of the court's ordinary jurisdiction has jurisdiction to try the offence as if it had been committed in the court's jurisdiction. Service on ship and appearance at trial (2) Where a ship is charged with an offence under section 13, the summons in relation thereto may be served by leaving it with the master or any officer of the ship or by posting the summons on a conspicuous part of the ship, and the ship may appear by counsel or agent but, if it does not appear, a court may, on proof of service of the summons, proceed ex parte to hold the trial. 15. (1) Where an enforcement officer believes on reasonable grounds that a ship has contravened this Act, the enforcement officer may stop and board the ship and, with a warrant, search the ship and seize anything found in or on the ship that the enforcement officer believes on reasonable grounds will afford evidence with respect to any contravention of this Act. (2) An enforcement officer may carry out the powers under subsection (1) without a warrant if by reason of exigent circumstances it would not be practicable to obtain a warrant. (3) While carrying out any of the powers under this section, an enforcement officer may
16. (1) Where an enforcement officer believes on reasonable grounds that an offence under this Act has been committed by or in respect of a ship, the enforcement officer may make a detention order in respect of the ship. Geographical application of section (2) The power to make a detention order under this section may be exercised in Canadian waters and in waters above the continental shelf of Canada. (3) A detention order made under subsection (1) shall be in writing and addressed to all persons who, at the place where the ship to which the order relates is or will be, are empowered to give a clearance in respect of the ship. Notice of detention order to be served on master (4) Where a detention order under this section is made in respect of a ship, notice thereof shall be served on the master of the ship
Ship under detention not to depart (5) Where notice of a detention order in respect of a ship is served under subsection (4) and, during the term of the detention order, the master or owner of the ship gives an order for the ship to depart from Canadian waters or from waters above the continental shelf of Canada, the master or owner, as the case may be, is guilty of an offence and liable on summary conviction to a fine not exceeding fifty thousand dollars. Duty of persons empowered to give clearance (6) Subject to subsection (7), no person to whom a detention order made under subsection (1) is addressed shall, after notice of the order is received by that person, give clearance in respect of the ship to which the order relates. (7) A person to whom a detention order made under subsection (1) is addressed and who has received notice of the order shall give clearance in respect of the ship to which the order relates where
Sale of ship where no appearance and no security (8) Where a ship has been charged with an offence under this Act within thirty days after the making of a detention order in respect thereof and, within thirty days after the day on which the ship was charged with the offence,
the Minister of Transport may apply to a court for an order authorizing the Minister of Transport to sell the ship. Sale of ship where appearance but no security (9) Where a ship has been charged with an offence under this Act within thirty days after the making of a detention order in respect thereof and
the Minister of Transport may apply to a court for an order authorizing the Minister of Transport to sell the ship. (10) Forthwith on making an application under subsection (8) or (9), the Minister of Transport shall, by registered mail, give notice of the application to
(11) A notice sent by registered mail under subsection (10) shall be deemed to have been given to the person to whom it was sent on the day on which an acknowledgement of receipt in respect thereof is received by the Minister of Transport. Court may relieve Minister of giving notice (12) Where the court seized of an application under subsection (8) or (9) is satisfied that it is appropriate to do so, the court may relieve the Minister of Transport of the obligation to give the notice referred to in subsection (10), or authorize the Minister of Transport to give the notice in such other manner as the court deems fit. (13) Where an application is made under subsection (8) or (9) in respect of a ship,
apply by notice in writing to the court seized of the application for an order referred to in subsection (14). (14) Where, on the hearing of an application made under subsection (13), it is made to appear to the satisfaction of the court
the court shall grant to the applicant an order declaring the nature and extent of the applicant's interest at the time of the commission of the offence. (15) Any person who makes an application under subsection (13), and the Minister of Transport, may appeal to the court of appeal from an order referred to in subsection (14) and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judgments of a court. Applications under subsection (13) to be heard first (16) A court shall not hear an application under subsection (8) or (9) until all applications under subsection (13) in relation thereto have been heard. (17) A court hearing an application under subsection (8) or (9) may authorize the Minister of Transport to sell the ship to which the application relates in such manner and subject to such terms and conditions as the court considers appropriate and, on application by the Minister of Transport, give directions to the Minister of Transport as to the rank of the interests of persons who have obtained an order referred to in subsection (14). (18) Where a ship is sold pursuant to this section, any surplus remaining from the proceeds of the sale after deducting
shall, to the extent of the surplus, be paid in accordance with the interests of persons who have obtained an order referred to in subsection (14), and any surplus remaining thereafter shall be paid to the person registered as the owner of the ship or, in the absence of registration, to the person who owns the ship. (19) On selling a ship pursuant to this section, the Minister of Transport may, by bill of sale, give the purchaser a valid title to the ship free from any mortgage or other claim on the ship that is in existence at the time of the sale. (20) Nothing in subsection (19) shall be construed as meaning that the ship may be registered in the name of the purchaser. (21) No ship sold pursuant to this section shall be deemed to have been duty paid under the Customs Tariff by reason only of that sale. (22) In this section, "court" « tribunal » "court" means
"court of appeal" « tribunal d'appel » "court of appeal" means, in the province in which an order referred to in subsection (14) is made, the court of appeal for that province as defined in section 2 of the Criminal Code and includes the Federal Court of Appeal. 17. No person shall obstruct or hinder an enforcement officer in the carrying out of the enforcement officer's duties and functions under this Act. 18. No person shall knowingly make a false or misleading statement, either orally or in writing, as the case may be,
Summary conviction offence and punishment 19. Every person who contravenes section 17 or 18 is guilty of an offence punishable on summary conviction and is liable to a fine of not more than fifteen thousand dollars or to imprisonment for a term not exceeding twelve months or to both. Minister of Transport responsible 20. Except where otherwise provided for in this Act, the Minister of Transport is responsible for the administration of this Act. 21. (1) Subject to subsection (2), a copy or extract of any document or paper made or taken pursuant to subsection 15(3) by an enforcement officer and purporting to be certified under the enforcement officer's signature as a true copy or extract is admissible in evidence in any prosecution for an offence under this Act without proof of the signature or official character of the person appearing to have signed the copy or extract and, in the absence of any evidence to the contrary, has the same probative force as the original document or paper would have if it had been proved in the ordinary way. (2) No copy or extract referred to in subsection (1) shall be received in evidence in any proceedings unless the party intending to produce it has given to the party against whom it is intended to be produced notice of that intention at least seven days prior to the proceedings together with a duplicate of the copy or extract. 22. to 28. [Amendments] 29. In the case of any ship that, immediately prior to the coming into force of this Act, is operating pursuant to a valid coasting trade licence under the Canada Shipping Act, this Act shall apply to that ship in respect of any activity authorized to be performed by the licence from the day that licence would otherwise have expired had this Act not come into force. Provisions of Canada Shipping Act continue to apply 30. All of the provisions of the Canada Shipping Act as that Act read immediately prior to the coming into force of this Act shall continue to apply with respect to any valid coasting trade licence under that Act in force immediately prior to the coming into force of this Act. Coming into force *31. (1) Subject to this section, this Act shall come into force on a day to be fixed by order of the Governor in Council. British ships and ships with coasting trade exemptions (2) In the case of any ship that is a British ship or that benefits from an exemption made pursuant to section 595 of the Canada Shipping Act, this Act shall apply to that ship six months after the day on which this Act comes into force. *[Note: Act in force December 1, 1992, see SI/92-175.] 1993, c. 28, s. 78 (Sch. III, s. 19): 19. Paragraph (f) of the definition "court" in subsection 16(22) is repealed and the following substituted therefor:
1998, c. 16, ss. 30, 31: 30. The definition "Canadian ship" in subsection 2(1) of the Coasting Trade Act is replaced by the following: "Canadian ship" « navire canadien » "Canadian ship" means a ship (a) registered under Part I of the Canada Shipping Act and in respect of which all duties and taxes imposed under the Customs Tariff and the Excise Tax Act have been paid, or (b) built in Canada and not required or entitled to be registered under Part I of the Canada Shipping Act; 31. Paragraph 16(10)(a) of the Act is replaced by the following:
Established by Statutes of
Canada 1992
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