You can use this page to find information on planned regulatory initiatives that Transport Canada expects to bring forward over the next two years (April 2021 – April 2023). The full versions of each plan are published in the Canada Gazette. It also lists public consultations that might interest you and departmental contact information for each planned initiative.
On this page
Initiative(s) planned for the Canada Gazette, Part II
1. Regulatory amendment implementing cost recovery for Marine Insurance Certificates (Changes to the Marine Liability and Information Returns Regulations and new regulations under the Wrecked, Abandoned and Hazardous Vessels Act)
Enabling acts
Marine Liability Act (S.C. 2001, c. 6)
Wrecked, Abandoned or Hazardous Vessels Act (S.C. 2019, C. 1)
Description
The proposed regulatory amendments would implement user fees for marine insurance certificates issued by Transport Canada for the Civil Liability Convention, the Bunkers Convention and the Wreck Removal Convention as part of a cost recovery initiative. Transport Canada anticipates introducing user fees for marine insurance certificates for the Hazardous and Noxious Substances Convention once this Convention comes into effect in Canada.
Here are the requirements of the three conventions:
- the International Convention on Civil Liability for Oil Pollution Damage, 1992, (for vessels carrying more than 2,000 tonnes of persistent oil in bulk)
- the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (for vessels over 1,000 gross tonnes)
- the Nairobi International Convention on the Removal of Wrecks, 2007 (for vessels greater than 300 gross tonnes)
In July 2019, Canada became party to the Wreck Removal Convention. This new requirement has significantly increased the number of Marine Insurance Certificates that Transport Canada issues. On an ongoing basis, Transport Canada estimates that it will deliver nearly 3,000 Marine Insurance Certificates annually. Transport Canada estimates issuing even more once the 2010 Hazardous and Noxious Substances Convention comes into effect in 2023 or 2024.
Although the department has the authority to charge fees, so far, Transport Canada has not charged for this service. Transport Canada is introducing the fee to better reflect the direct benefits that the marine transportation industry receives from the service.
Transport Canada is implementing the fee to follow the Service Fees Act (S.C. 2017, c. 20, s. (\d)51) as well as the Government of Canada's Budget 2017. The change is also part of the Government of Canada's Fee Modernization Initiative. Modernizing our cost recovery regime is a key component of the department's transformation plan, which Transport Canada launched after a far-reaching Comprehensive Review in 2016-2017.
Potential impacts on Canadians, including businesses
As Canadian businesses that need marine insurance certificates know what is required to obtain them, Transport Canada expects that the impact on Canadians due to the changes would be strictly from a financial standpoint.
Transport Canada will request a modest fee of $98 for each certificate. This will help cover the costs of the administrative requirements for supplying the certificates. Transport Canada will not be making a profit from the fees. Transport Canada has determined that this price will have a small impact for vessel owners who need to get marine insurance certificates. Transport Canada does not expect that it will have a negative impact on Canadians.
Most of the people who would be affected by the change would be Canadian vessel owners that meet the requirements for specific certificates. Also, other entities such as provincial ferry operators will be affected.
A small selection of international vessels will be affected, mostly from the United States. These vessels need Marine Insurance Certificates to operate in Canada and other states that are party to certain conventions, and in many cases, obtain the certificate from Transport Canada.
Regulatory cooperation efforts
Transport Canada expects that this proposal will not affect regulatory cooperation efforts.
Consultations
Transport Canada ran consultations with affected stakeholders on Implementing Cost Recovery for Marine Insurance Certificates.
The consultations included:
- mail outs and emails through a “notice to industry” in December 2018
- letters to current Marine Insurance Certificate holders in February 2019
- a notification to stakeholders promoting knowledge of the Let's Talk Transportation webpage (for their feedback) in February 2019
- launching the Let's Talk Transportation web page in February 2019
- presentations at the Canadian Marine Advisory Council
The proposed changes were pre-published in the Canada Gazette, Part I, on October 10, 2020.
Transport Canada expects the proposed changes to be published in the Canada Gazette, Part II, in 2021.
Departmental contact information
Caitlin O'Boyle
Manager/Senior Policy Advisor
International Marine Policy
Transport Canada,
Telephone: 343-553-3914
Email: caitlin.oboyle@tc.gc.ca
First included in Transport Canada's Forward Regulatory Plan: October 2018