Use of Canadian Registered Vessels

Act: Coasting Trade Act, S.C. 1992, c. 31
Regulation: Not applicable.

To Whom Does This Apply?

Companies that are interested in using foreign registered vessels in the Canadian Coasting Trade.

Summary

Under the Coasting Trade Act, any person who wishes to use a foreign registered vessel or a non-duty paid Canadian registered vessel to carry out a coasting trade activity in Canadian waters must apply for a temporary licence to do so. The role of the Canadian Transportation Agency (the Agency) is to make a determination whether suitable Canadian vessels are available to perform the activity or, in the case of passenger vessels, if an identical or similar adequate marine service is available from an operator of Canadian vessels.

The Coasting Trade Act, which was enacted in 1992, reinforced the provisions of the Canada Shipping Act to protect Canadian ship owners and operators from intrusion in the Canadian coasting trade. The coasting trade is defined as the movement of goods or persons from one point in Canada to another point in Canada either directly or indirectly (including via a point outside Canada), using a ship and any other mode of transport.

Any party wishing to use a foreign registered vessel in the Canadian coasting trade must apply to Canada Border Services Agency (CBSA) for authorization to bring the foreign vessel into Canadian waters, and a copy of the application must be submitted to the Agency. CBSA must determine whether a suitable Canadian vessel is available to perform the activity described in the application or, in the case of passenger vessels, if there is an identical or similar service offered by an operator of Canadian vessels. CBSA cannot issue any authorization to bring a foreign vessel into Canadian waters until the Agency has made a ruling.

Once an application is received by the Agency, a Request for Offers of Canadian vessels is issued by the Agency to ship owners and operators in the geographic region where the activity will take place. Offers must be filed by a specified date and the applicant has an opportunity to comment on any offer received. If no offers of Canadian vessels are received, the Agency so advises CBSA who then issues a letter of authorization to the applicant to use the foreign registered vessel in Canadian waters.

If offers of Canadian vessels are made, the Agency must then assess whether the vessels are suitable and available. The Agency examines economic, technical and commercial aspects of the use of Canadian vessels versus the use of the foreign registered vessel. Once this assessment has been completed, the Agency makes a ruling and advises CBSA whether or not suitable Canadian vessels are available. The CBSA then issues an authorization or refusal to use the foreign registered vessel.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

New Brunswick Contact(s):
See National Contact.

---

National Contact(s):
Ms. Danielle Pilon
Manager
Marine Complaints and Investigations
Canadian Transportation Agency
Terrasses de la Chaudière
15 Eddy Street
Gatineau, Quebec  K1A 0N9
Telephone: (819) 997-8354
Fax: (819) 953-5686
E-mail: maritime.cta@cta-otc.gc.ca