Canada Gazette, Part I, Volume 154, Number 46: Marine Safety Fees Regulations
November 14, 2020
Statutory authority
Canada Shipping Act, 2001
Sponsoring department
Department of Transport
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the regulations.)
Executive summary
Issues: Some of the existing fees for inspection services provided by Transport Canada (TC) have not been adjusted in approximately 20 years, while other services have no fees associated with them at all. As currently set, the fee regime places heavy strain on TC resources to maintain the current level of service, and requires Canadian taxpayers to subsidize inspection services provided almost exclusively to foreign vessel owners. Regulations are needed to ensure that beneficiaries of services pay an appropriate share for those services. In addition, amendments are needed to ensure that fees for current inspection services are consolidated under a single set of regulations, thereby ensuring that fee payers are easily able to identify fees that are applicable to their circumstances.
Description: The proposed Marine Safety Fees Regulations (the proposed Regulations) would introduce 17 fees for five types of marine safety inspections. The proposed fees would be indexed annually, based on the applicable Consumer Price Index published by Statistics Canada.
The Port Wardens Tariff would be repealed, and consequential amendments to the Cargo, Fumigation and Tackle Regulations and the Board of Steamship Inspection Scale of Fees would repeal references to existing marine cargo fees and Port State Control fees, because they would be replaced by the fees introduced in the proposed Regulations.
Finally, the Vessel Pollution and Dangerous Chemicals Regulations would be amended to allow for the introduction of a new fee, and to align with Annex II of the International Convention for the Prevention of Pollution from Ships, 1973 (MARPOL), and the Cargo, Fumigation and Tackle Regulations would also be amended to introduce a new fee.
Rationale: By implementing a modern fee regime that requires the beneficiaries of services to pay a greater portion of the costs for these services, the proposed Regulations would promote a better balance between the financial burden borne by service recipients and by Canadians. With a modernized fee structure that adjusts for inflation in accordance with the Service Fees Act, TC can address future growth in demand and continue to meet its service standards. This approach would ensure that TC has the capacity to continue to incorporate and enforce future international safety requirements under International Maritime Organization Conventions or Codes.
The total cost of the proposed Regulations is estimated at $8.87 million between 2021 and 2030 (present value, in 2019 Canadian dollars, discounted to 2020 at a 7% discount rate), of which $0.44 million would be incurred by domestic vessel owners and $8.43 million by foreign vessel owners. These costs to vessel owners would be used to recover the costs incurred by TC to provide marine cargo inspections, and therefore reduce the burden on Canadian taxpayers. However, only the cost to be incurred by foreign vessel owners ($8.43 million) would be considered a net increase in TC’s cost recovery and a benefit to Canada; the costs to domestic vessel owners would be a shift of burden from Canadian taxpayers and therefore the impact would be neutral at the societal level.
Issues
The existing fees for some of the inspection services provided by TC have not been adjusted in approximately 20 years despite inflationary increases to the cost of wages, transportation, and equipment; updated requirements under international codes; and an increase in export volumes. In addition, some inspection requirements have no associated fees at all, leaving Canadians to bear the full costs of providing these services.
Inspection service fees are also spread out across multiple regulations and include a combination of fixed, hourly, and tonnage-based fees, which industry clients and stakeholders have indicated are complicated and unpredictable.
As currently set, the fee regime places a heavy strain on TC resources to maintain a consistent level of service, and requires Canadian taxpayers to subsidize inspection services provided almost exclusively to foreign vessel owners. The modernization of this fee regime through the making of the proposed Regulations would better reflect the true cost to TC of providing these services and would simplify the fee structure for stakeholders and TC.
The Vessel Pollution and Dangerous Chemicals Regulations as well as the Cargo, Fumigation and Tackle Regulations would also need to be amended to allow for the introduction of new fees. These amendments will be addressed in the Regulations Amending Certain Regulations Made Under the Canada Shipping Act, 2001, which are included as part of this regulatory proposal.
In addition, the Vessel Pollution and Dangerous Chemicals Regulations require a minor update to clarify language in order to align with Annex II of MARPOL.
Background
TC, under the authority of the Canada Shipping Act, 2001, develops, implements and administers policies, regulations and standards necessary for the safe conduct of marine activities in a manner harmonized with international standards. As part of that mandate, marine safety inspections are undertaken, which include the following: (i) mandatory inspections for three higher-risk cargoes (i.e. grain, timber on deck, and concentrates for export to a place that is not within the limits of an inland voyagefootnote 1; (ii) verification of shippers’ procedures; (iii) inspections relating to bulk and/or packaged dangerous goods; (iv) tank washing inspections; and (v) Port State Control inspections for foreign-registered vessels for ensuring compliance with various major international maritime conventions.
1. Marine inspections for grain, timber on deck, and concentrates
The inspections for higher-risk marine cargoes are governed pursuant to the Cargo, Fumigation and Tackle Regulations. They ensure that the loading and carriage of cargo (the higher-risk cargoes) are done safely and in accordance with strict requirements.
Fees for these inspection services are currently set in the Port Wardens Tariff and the Board of Steamship Inspection Scale of Fees. Depending on the circumstances, fees can be fixed, hourly, and/or tonnage-based.
Marine shipping industries operate on tight deadlines. Cargo operations (loading and unloading) can happen at any time of day or night, and decisions regarding shore loading workers are often made on short notice, based on industry requirements at the time. All inspection services are provided 24 hours a day, 7 days a week and require a quick turnaround to avoid costly delays for stakeholders and industry. For this reason, TC marine inspectors are often on call, required to travel, and frequently asked to work overtime. Under the current fee regime, TC recuperates only 66% of the costs of these inspections.
2. Inspections relating to bulk and/or packaged dangerous goods
TC is responsible for the inspection of vessels on which dangerous goods in solid bulk and/or packaged form are loaded, carried or unloaded, such as ammonium nitrate–based fertilizers and explosives. For this activity, there are hourly fees defined in sections 116 and 162 of the Cargo, Fumigation and Tackle Regulations.
3. Verification of shippers’ procedures
TC performs four different types of verification services of shippers’ procedures for cargo that may liquefy to ensure compliance with the International Maritime Solid Bulk Cargoes Code (IMSBC Code), which is mandatory under the International Convention for the Safety of Life at Sea (SOLAS). Upon completion of the initial verification of the shippers’ procedures, a letter of approval is provided to the shipper. Initial verification would ensure that the procedures comply with the provisions of the IMSBC Code, appropriate training is undertaken, and appropriate equipment is at the facility and/or the terminal as described in the procedures. An intermediate verification takes place no later than the first anniversary date of receipt of the letter of approval to review the procedures to ensure that there were no modifications. When a shipper modifies their procedures, a modification review by a TC inspector, similar to the initial verification, is required. A renewal verification is done at intervals specified by the authority of the port of loading, but cannot exceed five years.
Hazards can result from liquefaction and potential shifting of cargoes. Ensuring vessel stability and proper stowage and securing cargo during transport leads to safer operations and a safer workplace for seafarers. Proper cargo transport may also provide protection to the environment by avoiding potential cargo spills.
Verifications can be a costly and time-consuming process for TC inspectors, as they are required to review and approve the procedures established by the shipper regarding sampling, testing and controlling for the moisture content of cargoes that may liquefy. Currently, there are no fees associated with the services required to provide verification of shippers’ procedures for cargoes that may liquefy, as it is a relatively new activity introduced in 2015.
Tank prewash inspections
Prewash services are for Canadian or foreign-flagged vessels that have unloaded a “Category X” noxious liquid substance at a port and intend to depart from the port of unloading. Before a vessel leaves the port of unloading, it is required to prewash the tank that held the noxious liquid substance and discharge the residues to a reception facility until the concentration level of the noxious substance is below the maximum allowable level, hence the term “prewash.” If residues of these substances are discharged into the sea from tank cleaning or deballasting operations, they are deemed to present a major hazard to either marine resources or human health and, therefore, it is prohibited to discharge them into the marine environment. The Vessel Pollution and Dangerous Chemicals Regulations provide the authority to conduct prewash inspections or grant exemptions as per Annex II of MARPOL. Vessels that contained “Category X” substances require a prewash operation prior to leaving the port of unloading or must be granted an exemption under the list provided in the Regulations. There are currently no fees associated with prewash inspections or inspections to confirm a prewash exemption. Exemptions to the prewash requirement can be given for reasons such as reloading with the same or compatible substance, washing to occur at another port with an appropriate reception facility, or using various other approved methods of dealing with cargo residues. Exempted vessels are still required to have a TC inspector verify necessary procedures and documentation to support the exemption.
In addition, MARPOL Annex II requires Governments to determine whether a vessel can be exempted from prewash requirements. The Vessel Pollution and Dangerous Chemicals Regulations do not align with the MARPOL provisions in that they do not explicitly indicate that the exemption needs to be granted by a government official. Moreover, as a result of this omission, it is not clear who may decide that a vessel should be exempted.
4. Port State Control inspections
Under the Port State Control program, TC inspects foreign vessels entering Canadian waters to ensure they comply with various international conventions. Canada is a signatory to several memoranda of understanding regarding Port State Control, including the Paris and Tokyo memoranda of understanding. Under such memoranda of understanding, Canada is obligated to inspect foreign vessels in Canadian waters using targeting methods to ensure that vessels meet certain standards, such as for the vessel’s condition and number of personnel on board. Vessels may also be inspected for other reasons under Part 11 of the Canada Shipping Act, 2001, following accidents, incidents, sustained damage, pollution, etc.
Port State Control inspections require a marine inspector to board a foreign vessel entering Canadian waters to ensure the vessel meets the safety requirements of the major international maritime conventions and also has on board all required documentation. The international conventions that vessels need to comply with include the SOLAS, the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978, the International Convention for the Prevention of Pollution from Ships, the International Convention on Load Lines, the Convention on the International Regulations for Preventing Collisions at Sea, and the Maritime Labour Convention, 2006. There is no fee for an initial inspection, as it is considered a compliance inspection; however, fixed fees are currently found in the Board of Steamship Inspection Scale of Fees for follow-up inspections, including for the rescinding of a detention order.
Modernization
In winter 2018, TC undertook a comprehensive exercise to develop an informed costing of the Marine Cargo and Port State Control programs to establish appropriate inspection service fees. The costing approach adhered to the Treasury Board of Canada Secretariat’s Guide to Cost Estimating and sought to establish defensible and transparent cost estimates. Costing for cost recovery purposes requires that the “full cost” of providing an activity be calculated. For cost-recoverable service fees, full cost is the allowable upper limit of the fee and represents the starting point for pricing decisions. A full cost estimate comprises all relevant resource costs incurred to deliver an activity or provide a service, including direct and indirect costs. The Marine Cargo and Port State Control costing exercise factored in salary costs, benefit plans, training and travel, office accommodations, internal support services, and information technology system development and maintenance costs. These costs were allocated to Marine Cargo and Port State Control activities and services based on resource consumption and level of effort.
The results of the costing exercise estimated that the full cost of administering the Marine Cargo program is $7.8 million annually. Of this cost, about $5.13 million is recovered annually via service fee revenue, which represents a 66% cost recovery rate. A “Public-Private Benefit Assessment” (PPBA), using a tool developed by the Treasury Board Secretariat, indicated that 90% of the benefits of TC’s marine cargo inspection services accrue to the companies that receive the services. Such benefits include improved safety and the ability to participate in commercial activity. While pricing analysis for service fees requires many considerations, such as clients’ ability to pay and comparison with fees in other jurisdictions, the degree of private benefit generated by a service is important when making pricing decisions.
The costing analysis further estimated that the full cost of delivering the Port State Control program is $8.97 million annually. Of this amount, about $0.2 million is spent on the follow-up inspections for which updated fees are proposed; most costs are incurred to provide risk-based compliance inspections. The current cost recovery rate for follow-up inspections is 42%. The PPBA again indicated that 90% of the benefits of TC’s revenue-generating Port State Control services accrue to the companies that receive the services.
These proposed updates to the marine cargo fees are part of a broader plan to modernize the fee regime throughout TC. The Marine Safety and Security directorate’s fee modernization initiative is being rolled out in phases, and the marine cargo fees are the first step in this initiative.
The larger modernization initiative will continue to update and incorporate marine safety fees into these comprehensive proposed Regulations.
Objective
The modernization of the marine cargo fee regime would better reflect the actual cost to TC of providing inspection services and would simplify the fee structure for both industry stakeholders and TC. By implementing a modern fee regime that requires the beneficiaries of services to pay a greater portion of the costs for these services, TC is promoting better balance between the financial burden borne by service recipients and by Canadians. With a modernized fee structure that adjusts for inflation in accordance with the Service Fees Act, TC can address future growth in demand and continue to meet its service standards. This approach would ensure that TC has the capacity to continue to incorporate and enforce future international safety requirements under the conventions or the codes of the International Maritime Organization.
In addition, the updated fee regime would allow TC to continue to provide high-value services to the industry that contribute to the safety and security of vessels by ensuring that requirements set out under regulations and outlined in the applicable international codes are properly followed.
Description
The proposed Regulations would repeal the Port Wardens Tariff, and introduce 17 fees for five types of marine safety inspections.
Repeals and consequential amendments
The Port Wardens Tariff would be repealed entirely, and consequential amendments to the Cargo, Fumigation and Tackle Regulations and the Board of Steamship Inspection Scale of Fees would repeal references to existing marine cargo fees and Port State Control fees, since they would be replaced with new fees in the proposed Marine Safety Fees Regulations and Regulations Amending Certain Regulations Made Under the Canada Shipping Act, 2001.
The update and introduction of 17 fees for five types of marine safety inspections
In accordance with the Service Fees Act, the proposed fees would be indexed annually, based on the applicable Consumer Price Index published by Statistics Canada. The inflation-adjusted fee levels and the date they would come into effect would be published in TC’s Annual Fees Report, which is tabled in Parliament, and would be made available on the TC website.
Table 1A below shows the summary fee count and types of inspections. Tables 1B and 1C below show the proposed fees for the five categories of marine safety inspections, as well as the phase-in schedule for the marine cargo inspection fees (i.e. marine cargo inspections, dangerous goods inspections and verification of shippers’ procedures). The fees for these three activities would not be subject to a Consumer Price Index increase until the full fee amount is in place after the three-year incremental increase period.
| Summary Fee Count — Current Versus Proposed | Current Number of Fees | Proposed Number of Fees |
|---|---|---|
| Marine cargo inspections | 38 | 2 |
| Inspections relating to bulk and/or packaged dangerous goods | 16 | 2 |
| Verification of shippers’ procedures for cargoes that may liquefy | 0 | 3 |
| Tank wash operations | 0 | 8 |
| Inspections of foreign vessels | 3 | 2 |
| Total fee count | 57 | 17 |
| Service | Year 1 | Year 2 | Year 3 |
| Marine cargo inspections for grain, timber on deck and concentrates | |||
|---|---|---|---|
| 1. Fee for inspection | $616 | $682 | $750 |
| 2. Fee for document issuance after inspection | $834 | $923 | $1,010 |
| Inspections relating to bulk and/or packaged dangerous goods | |||
| 3. Packaged goods | $750 | $1,125 | $1,500 |
| 4. Bulk cargo | $750 | $1,125 | $1,500 |
| Verification of shippers’ procedures for cargoes that may liquefy | |||
| 5. Initial or modification | $1,670 | $2,070 | $2,500 |
| 6. Intermediate | $835 | $1,035 | $1,250 |
| 7. Renewal | $835 | $1,035 | $1,250 |
| Service | Fee |
|---|---|
| Tank wash operations | |
| Witnessing prewash | 8. Fixed $3,075 for up to 3.75 hours of work Any additional hours: 9. Business hours: $105 10. Outside of business hours, other than on a Sunday: $307 11. Any hour on a Sunday: $336 |
| Prewash exemptions | 12. Fixed $3,075 for up to 3.75 hours of work Any additional hours: 13. Business hours: $105 14. Outside of business hours, other than on a Sunday: $307 15. Any hour on a Sunday: $336 |
| Inspection of foreign vessels | |
| 16. Rescission of detention order | $4,200 |
| 17. Rectification of deficiency | $1,870 |
Marine cargo inspections for grain, timber on deck and concentrates
Thirty-eight different inspection fee provisions related to mandatory marine cargo inspection for grain, timber on deck and concentrates that are currently spread out through the Port Wardens Tariff and the Board of Steamship Inspection Scale of Fees would be repealed and replaced by two new fees:
- (a) a fee for inspection of $750 on days when an inspector inspects the vessel to establish that the requirements for the issuance on the certificate have been met, travels to or from the vessel’s location or, at the request of the vessel’s authorized representative, is on call or made available for an inspection; and
- (b) a fee for document issuance after inspection of $1,010 when an inspector performs activities in relation to the issuance of a first certificate of readiness to load, a fitness to proceed certificate, or another written statement under subsection 119(5), 128(4) or 140(5) of the Cargo, Fumigation and Tackle Regulations.
This fee structure will allow TC to recover more of the costs of delivering marine safety inspection services.
Inspections relating to bulk and/or packaged dangerous goods
The proposed Regulations would introduce a fixed fee of $1,500 for inspections relating to bulk and/or packaged dangerous goods pursuant to the requirements of the Cargo, Fumigation and Tackle Regulations, the Safe Container Convention Act and the Safe Containers Convention Regulations.
Verification of shippers’ procedures
Currently, there are no fees associated with the services to provide verification of shippers’ procedures for cargoes that may liquefy. The proposed Regulations would introduce two new fixed fees for these services — a fee of $2,500 for an initial verification or a verification of modification of shippers’ procedures and a fee of $1,250 for intermediate or renewal of shippers’ procedures verifications.
Tank prewash inspections
The proposed Regulations would introduce a fixed fee of $3,075 plus an hourly rate (if the inspection goes above 3.75 hours) for the service requirement for a marine inspector to oversee tank prewash operations or to verify that the owner/operator has followed the appropriate procedures and record keeping for the purposes of granting an exemption. Fees for tank wash inspections that are currently covered under the Board of Steamship Scale of Fees would be repealed.
Port State Control inspections
The proposed Regulations would increase the existing fixed fees for Port State Control follow-up inspections and detention of vessels. A fee of $1,870 to perform a follow-up inspection for deficiencies that did not warrant detention of the vessel, and a fee of $4,200 to perform a follow-up inspection for the purpose of lifting a detention order against a vessel found in non-compliance.
Additional amendments
In addition to the modernization of marine cargo fees, this proposal would also include amendments to certain regulations made under the Canada Shipping Act, 2001, these being the Cargo, Fumigation and Tackle Regulations (CFTR), the Vessel Pollution and Dangerous Chemicals Regulations (VPDCR) and the Administrative Monetary Penalties and Notices (CSA 2001) Regulations. The CFTR would be amended in order to update the reference from the BC Code to the IMSBC Code and to include the approval of shipper’s procedures for bulk cargoes that may liquefy. The VPDCR would be amended to clarify the responsibility regarding prewash operations and to align with Annex II of MARPOL by clarifying that the Government is responsible for granting exemptions from prewash requirements for vessels previously loaded with a “Category X” noxious liquid substance. The Administrative Monetary Penalties and Notices (CSA 2001) Regulations would also be amended in order to align with these modifications (e.g. renumbering in the VPDCR).
Regulatory development
Consultation
TC has undertaken significant consultations on the overall marine safety fee modernization initiative, and specifically with respect to the fee modernization for the marine cargo program.
Presentations on the TC Fee Modernization Plan were made at the National Canadian Marine Advisory Council (CMAC) meetings held in December 2017, May 2018, and November 2018, and at Regional CMAC meetings during the winter and spring of 2018. Additionally, focused stakeholder engagement sessions on the marine cargo fee proposal were held with stakeholders from the marine industry on June 11, 2018, and March 28, 2019, in Montréal, and June 20, 2018, and March 6, 2019, in Vancouver.
In general, participants support the proposed fee structure for the marine cargo program and want to continue to explore ways to streamline inspection services and increase cost effectiveness. Stakeholders also requested advance notice prior to the implementation of the new regime.
Written comments were received from the British Columbia Chamber of Shipping, as well as the Shipping Federation of Canada and the Chamber of Marine Commerce. While both organizations were generally supportive of the overall proposal, a few concerns were identified. For example, both organizations recommended a 24-hour time frame rather than a cut-off at midnight for the daily fee and a potential cap on the costs of marine cargo inspections for grain, timber on deck and concentrates. In response to the stakeholder concerns, TC has made some adjustments to the fee proposal. Among the changes, was an adjustment to the ratio between the inspection fee and the document issuance fee and a cap for the document issuance after inspection fee. The fee for inspection was increased from $512 to $750 and the fee for document issuance after inspection has been reduced from $1,900 to $1,010 (the total for a day that a vessel receives a certificate would be $1,760). In addition, TC is proposing to cap the number of fees for document issuance after inspection to a maximum of two per inspection interval (not including the issuance of a preliminary certificate). For example, in the winter, some vessels may require two inspections to confirm “readiness to load” because they have a “winter ballast” in one of their tanks to maintain the vessel’s stability until cargo is loaded on board the vessel. A first inspection would be required while the ballast tank is full; and, after cargo is loaded and the ballast water has been removed, an inspection of the empty tank would be needed. In such a case, no fee would be charged for the second inspection. Similarly, TC is proposing to charge one fee per day for document issuance after inspection – no matter the number of documents issued that day.
Stakeholders also raised concerns about being impacted by many government-wide fee modernization initiatives. In order to reduce the immediate impact of the proposed fees, TC would be implementing the marine cargo inspection fees (i.e. marine cargo inspections, dangerous goods inspections and verification of shippers’ procedures) gradually over a three-year period. The increase would be spread out evenly over the three-year period.
Port State Control and prewash service stakeholders overlap significantly with marine cargo service stakeholders. Thus, fee modernization plans for Port State Control follow-up inspections and prewash inspections were merged into the regulatory development and consultation plans for marine cargo services. Consultation was conducted by means of a letter, which targeted stakeholders that have a particular interest in the fee modernization of Port State Control and prewash services (i.e. shipping associations that represent the interests of the majority of owners, operators and agents of ships involved in Canada’s world trade). During this consultation, affected stakeholders were given the opportunity to provide feedback on the proposed fee structure for Port State Control and prewash services. The consultation period was set for 30 days, from June 10 to July 10, 2020, which was extended by an additional 14 days at the request of the stakeholders.
No comments were received concerning the prewash operations activities. Regarding the Port State Control activity, questions were raised on how the costing, pricing and the ratio of public versus private were determined. TC replied to these stakeholders and provided them with the requested information.
COVID-19 Pandemic
Consultations with stakeholders on the proposed fees and fee increases continued in 2020 during the COVID-19 pandemic. No concerns were raised by stakeholders about potential impacts of the pandemic on the implementation of the proposed fees and fee increases.
Modern treaty obligations and Indigenous engagement and consultation
In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, Transport Canada’s Regulatory Stewardship and Aboriginal Affairs group completed an Assessment of Modern Treaty Implications that examined the geographical scope and subject matter of the proposed amendments in relation to modern treaties in effect. No implications or impacts on modern treaties have been identified.
Instrument choice
As currently set, the fee regime places a heavy strain on TC resources to maintain a consistent level of service, and requires Canadian taxpayers to subsidize inspection services provided almost exclusively to foreign vessel owners.
Regulations were chosen as the instrument to address this issue in order to simplify fee structures and better balance the financial burden of the service delivery costs between service recipients and taxpayers.
In addition, regulatory amendments are needed to ensure that fees for current inspection services are consolidated under a single set of regulations, thereby ensuring that fee payers are easily able to identify fees applicable to their circumstances.
Although there are non-regulatory options, such as Service Level Agreements, that would meet most of the objectives of this proposal, these were not chosen primarily to reduce the administrative burden on TC’s clients. Setting fees by regulation is a standard approach used by governments worldwide and is well understood by TC’s clients, both domestic and foreign. Continuing to set fees by regulation also offers a measure of cohesion between the current and proposed fee regime.
Regulatory analysis
The proposed Regulations would increase the portion of marine cargo safety fees being paid by vessel owners. The total incremental cost to vessel owners would be $8.87 million. This includes incremental cost to domestic ($0.44 million) and foreign ($8.43 million) vessel owners.
The incremental costs to vessel owners would be used to recover the costs incurred by TC to provide these inspections, reducing the burden on Canadian taxpayers. For this reason, the incremental cost to vessel owners would be equal to the cost recovery amount received by TC.
Benefits and costs
Analytical framework
Benefits and costs associated with the proposed Regulations are assessed by comparing the baseline scenario against the regulatory scenario. The baseline scenario depicts what is likely to happen in the future if the Government of Canada does not implement the proposed Regulations. The regulatory scenario provides information on the intended outcomes as a result of the proposed Regulations.
The proposed Regulations would ensure that a greater portion of the total costs for marine safety inspection services would be covered by the recipients of those services. Both domestic and foreign vessel owners would be affected, with foreign vessel owners bearing a greater portion of the total costs.
Following the Treasury Board Secretariat’s Cost-Benefit Analysis Guide, the scope of this analysis is at the societal level, analyzing costs and benefits attributed to Canadians. It is expected that the increased marine cargo fees would result in a rebalancing of costs from taxpayers to industry (i.e. foreign and domestic vessel owners). Incremental costs to foreign stakeholders would represent a net increase in the cost recovered by TC (since these costs would not be borne by Canadians). Therefore, costs to domestic vessel owners would have a neutral impact on Canadian society, while costs to foreign vessel owners are considered a benefit to Canadians.
In order to determine the impacts of the proposed Regulations, data from a comprehensive exercise that determined the appropriate costing of the Marine Cargo and Port State Control programs was used. This exercise was undertaken by TC’s Cost Recovery Directorate. Further, the number of inspections per inspection type and the current fees associated with each inspection type were sourced from TC’s financial and dispatching systems. Lastly, TC will periodically review activities for which fees are charged. These reviews will identify whether pricing for service fees needs to be revisited. Therefore, the risk of the costs of service delivery increasing faster than inflation, and resulting in the cost recovery program being underfunded, remains low.
This analysis estimated the impact of the proposed Regulations over a 10-year period from 2021 to 2030. Unless otherwise stated, all costs are in present values, in 2019 Canadian dollars and discounted to 2020 at a 7% discount rate.
A detailed cost-benefit analysis report is available upon request.
Affected stakeholders
The modernization of the marine cargo fee regime would apply to Canadian and foreign vessel owners. According to TC’s Navigation Safety and Environmental Program, an average of 1 624 marine cargo and associated inspections is performed per year. According to TC’s Cost Recovery Directorate, the average number of inspections is an appropriate estimate for the future number of inspections, as the inspection levels are expected to continue at around the same level.
Based on the analysis of TC subject matter experts, 95% of vessels affected by the proposed Regulations would be foreign owned and 5% would be Canadian owned.
Further, bulk carriers, predominately between 20 000 gross tonnage (GRT) and 45 000 GRT, are the main type of vessel that would be affected by the proposed Regulations. The top commodities that these vessels transport are iron ore, crude oil, wheat, and fuel oil. TC expects only large companies, and no small businesses, to be impacted by the proposed Regulations.
Baseline and policy scenarios
In the baseline scenario, vessel owners would pay the current fees associated with marine safety inspections, whereas the policy scenario assumes that the new increased marine inspection fees presented in the proposed Regulations would be implemented.
As noted, TC’s financial and dispatching systems indicate that TC conducts about 1 624 inspections per year on average. It is assumed that this average would hold over the next 10 years under both the baseline and the policy scenarios.
The baseline and policy scenarios for each marine cargo inspection are presented in Table 2, and briefly described below. Further, in Table 2, the various fees under the following inspection types have been aggregated given the similarities in cost under each of these inspections:
- Inspections relating to bulk and/or packaged dangerous goods;
- Verification of shippers’ procedures; and
- Tank wash inspections.
Cost by type
Marine cargo inspections for grain, timber on deck and concentrates
The average cost to TC of performing a full marine cargo inspection is $5,309. Under the current fee structure, TC receives about $3,404 per full inspection. The proposed Regulations would repeal 40 fee provisions under the current regulations and replace them with two new requirements:
- (1) a fee of $750 for an inspection when an inspector inspects the vessel to establish that the requirements for the issuance on the certificate have been met, travels to or from the vessel’s location or, at the vessel’s authorized representative request, is on call or made available for an inspection; and
- (2) a fee for document issuance after inspection of $1,010 when an inspector performs activities in relation to the issuance of a first certificate of readiness to load, a fitness to proceed certificate or another written statement under subsection 119(5), 128(4) or 140(5) of the Cargo, Fumigation and Tackle Regulations.
Inspections relating to bulk and/or packaged dangerous goods
The average cost to TC of performing an inspection relating to bulk and/or packaged dangerous goods is $2,891. Under the current fee structure, TC receives about $202 per inspection. This amount would increase under the proposed Regulations, as a fixed fee of $1,500 for both bulk cargo and packaged dangerous goods inspections would be charged.
Verification of shippers’ procedures
The average cost to TC of performing an inspection relating to an initial verification or modification verification of shippers’ procedures is $3,338, and the average cost of performing an inspection related to an intermediate or renewal verification of shippers’ procedures verifications is $1,669. Currently, there are no fees associated with these inspections. The proposed Regulations would introduce a fixed fee of $2,500 for an initial or modification verification of shippers’ procedures, and a fixed fee of $1,250 for an intermediate or renewal verification of shippers’ procedures.
Tank wash inspections
The average cost to TC of performing an inspection relating to the verification of international convention requirements is $4,396. Under the current fee structure, TC receives about $900 per inspection. This amount would increase under the proposed Regulations, whereby a fixed fee of $3,075 would be charged per inspection, plus an additional hourly rate if the inspection takes longer than 3.75 hours.
Port State Control inspections
The average cost to TC of performing a follow-up inspection to verify rectification of deficiencies for the purpose of lifting a detention order is $4,680, and $2,080 when a follow-up inspection is required to verify rectification of deficiencies that did not lead to a detention order. Currently, TC receives about $1,900 for a follow-up inspection to verify rectification of deficiencies for the purpose of lifting a detention order, and $900 for a follow-up inspection to verify rectification of deficiencies that did not lead to a detention. The proposed Regulations would introduce a fixed fee of $4,200 when a follow-up inspection is required to verify rectification of deficiencies for the purpose of lifting a detention order, and $1,870 when a follow-up inspection is required to verify rectification of deficiencies that did not lead to a detention.
A summary of the baseline and policy scenarios for each inspection type described above is presented in Table 2.
| Inspection Type | Average Annual Inspections (2015–2018) | Baseline Scenario | Policy Scenario | |||
|---|---|---|---|---|---|---|
| Cost Recovered per Inspection | Cost Recovery Rate | Cost Recovered per Inspection | Cost Recovery Rate | Incremental Cost | ||
| Marine cargo inspections for grain, timber on deck and concentrates | 1 508 | $3,404 | 66% | $750 table a4 note * (fee for inspection) $1,010 table a4 note * (fee for document issuance after inspection) |
91% | $7.70M |
| Bulk/packaged dangerous goods inspection | 7 | $202 | 7% | $1,500 | 52% | $51.82K |
| Verification of shippers’ procedures | ||||||
| Initial or modification verification of shippers’ procedures | 4 | $0 | 0% | $2,500 | 75% | $60.96K |
| Intermediate or renewal verification of shippers’ procedures | 5 | $0 | 0% | $1,250 | 75% | $38.10K |
| Tank wash inspections | 23 | $900 | 21% | $3,075table a4 note ** | 70% | 332.01K |
| Port State Control inspections | ||||||
| Port State Control inspection with a detention | 23 | $1,900 | 41% | $4,200 | 90% | $345.13K |
| Port State Control inspection without a detention | 54 | $900 | 43% | $1,870 | 90% | $340.28K |
| TOTAL COST | $8.87M | |||||
Table a4 note(s)
|
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Cost by vessel owner
The costs associated with the proposed Regulations would be carried by Canadian and foreign vessel owners, as vessel owners are the primary users of the marine safety fee program. It is important to make the distinction in cost by type of vessel owner, as they each represent a different outcome to the Canadian society. The incremental fees collected from Canadian and foreign vessel owners for each inspection type is presented in Table 3 below.
Cost to domestic vessel owners
The proposed Regulations would result in incremental costs to domestic vessel owners of $0.44 million, bearing approximately 5% of the total costs to vessel owners.
Cost to foreign vessel owners
Foreign vessel owners are estimated to bear $8.43 million in incremental costs, bearing approximately 95% of the total costs.
As presented in Table 3, both Canadian and foreign vessel owners would be most impacted by marine inspections for grain, timber on deck and concentrates, and least impacted by inspections related to an intermediate or renewal verification of shippers’ procedures.
| Inspection Type | Domestic Vessel Owners | Foreign Vessel Owners | Total Cost Recovered |
|---|---|---|---|
| Marine cargo inspections for grain, timber on deck and concentrates | $384.99K | $7.31M | $7.70M |
| Bulk/packaged dangerous goods inspection | $2.59K | $49.23K | $51.82K |
| Verification of shippers’ procedures | |||
| Initial verification or modification of verification of shippers’ procedures | $3.05K | $57.91K | $60.96K |
| Intermediate or renewal verification of shippers’ procedures | $1.91K | $36.20K | $38.10K |
| Tank wash inspections | $16.60K | $315.41K | $332.01K |
| Port State Control inspections | |||
| When an inspection is required to verify rectification of deficiencies noted during a Port State Control inspection, for the purpose of lifting a detention order | $17.26K | $327.87K | $345.13K |
| When an inspection is required to verify rectification of any defect or deficiency, other than a deficiency that resulted in a detention order following a Port State Control inspection | $17.01K | $323.27K | $340.28K |
| TOTAL | $0.44M | $8.43M | $8.87M |
Benefits
As previously stated, the proposed Regulations would result in a shift of cost burden from Canadians to vessel owners. The incremental cost recovery from the proposed Regulations would be $8.87 million.
Costs to Canadian vessel owners would be considered a rebalancing of costs from Canadians to domestic vessel owners. Therefore, the total regulatory impact to Canada as a whole would be neutral. The rebalancing of costs from Canadian taxpayers to Canadian vessel owners would be $0.44 million.
Costs to foreign vessel owners would result in a net cost recovery to Canadians of $8.43 million. The cost to foreign vessel owners would be carried by non-Canadians, and, therefore, the transfer of burden from Canadian taxpayers to the foreign vessel owners would be considered a net increase in cost recovery, and a benefit to Canadians at the societal level.
Cost-benefit statement
- Number of years: 10 (2021 to 2030)
- Base year for costing: 2019
- Present value base year: 2020
- Discount rate: 7%
| Impacted Stakeholder | Description of Cost | Base Year: 2021 | Annual Average: (2022–2029) | Final Year: 2030 | Total (Present Value) | Annualized Value |
|---|---|---|---|---|---|---|
| Domestic vessel owners | Increase to marine cargo fees | $0.02M | $0,05M | $0.04M | $0.44M | $0.06M |
| All stakeholders | Total costs | $0.02M | $0.05M | $0.04M | $0.44M | $0.06M |
| Impacted Stakeholder | Description of Benefit | Base Year: 2021 | Annual Average (2022–2029) | Final Year: 2030 | Total (Present Value) | Annualized Value |
|---|---|---|---|---|---|---|
| Transport Canada | Increase cost recovered by TC from marine cargo fees (from domestic vessel owners) | $0.02M | $0,05M | $0.04M | $0.44M | $0.06M |
| Increase cost recovered by TC from marine cargo fees (from foreign vessel owners) | $0.45M | $0.91M | $0,69M | $8.43M | $1.20M | |
| All stakeholders | Total benefits | $0.47M | $0.96M | $0.72M | $8.87M | $1.26M |
| Impacts | Base Year: 2021 | Annual Average (2022–2029) | Final Year: 2030 | Total (Present Value) | Annualized Value |
|---|---|---|---|---|---|
| Total costs | $0.02M | $0.05M | $0.04M | $0.44M | $0.06M |
| Total benefits | $0.47M | $0.96M | $0.72M | $8.87M | $1.26M |
| NET IMPACT | $0.45M | $0.91M | $0.69M | $8.43M | $1.20M |
Qualitative impacts
The proposed Regulations would better reflect the actual cost to TC of providing inspection services and would simplify the fee structure for both industry stakeholders and TC. By implementing a modern fee regime that requires the beneficiaries of services to pay a greater portion of the costs for these services, TC is promoting better balance between the financial burden borne by service recipients and Canadians. With a modernized fee structure that adjusts for inflation in accordance with the Service Fees Act, TC can address future growth in demand and continue to meet its service standards. This approach allows for inclusion of future international safety requirements under International Maritime Organization Conventions or Codes.
Sensitivity analysis
As previously described, a number of assumptions have been made to estimate the costs of the proposed Regulations. To address the effect of uncertainty and variability on these assumptions, a sensitivity analysis is conducted, where variables are assigned different values, and outcomes are re-evaluated. A sensitivity analysis was performed on the following variables: analytical timeframe and discount rates.
Analytical timeframe
A 10-year analytical timeframe was used for the central analysis, whereas the sensitivity analysis presents the results should a 20-year timeframe have been used.
Discount rate
The central analysis used a 7% discount rate as recommended by the Treasury Board of Canada Secretariat. The sensitivity analysis presents the results should a 3% discount rate have been used, as well as if there was no discounting.
| 10-year Timeframe | 20-year Timeframe | |
|---|---|---|
| Undiscounted | $13.01M | $27.26M |
| 3% | $10.96M | $20.00M |
| 7% | $8.87M table 7 note * | $13.96M |
Table 7 note
|
||
Distributional analysis
As mentioned previously, Canadian and foreign vessel owners would be impacted by the proposed Regulations. While the exact number of impacted foreign vessels is not known, it is estimated that 95% of the costs would be carried by foreign-owned vessels, for a total of $8.43M. Canadian vessel owners would carry the remainder of the 5%, for a total of $0.44M. Table 8 provides a breakdown of the costs to foreign and Canadian vessel owners.
| Stakeholder | % | Total Cost |
|---|---|---|
| Foreign owned | 95 | $8.43M |
| Canadian owned | 5 | $0.44M |
| Total | 100 | 8.87M |
Small business lens
The small business lens does not apply, as there are no associated impacts on small businesses. None of the Canadian vessel owners that could be impacted have fewer than 100 employees or less than $5 million in revenue annually.
One-for-one rule
The one-for-one rule does not apply to the proposed Regulations, as there is no incremental change in administrative burden on businesses. The proposal repeals an existing regulation and replaces it with a new regulatory title, which results in no net increase or decrease in regulatory titles.
Regulatory cooperation and alignment
The proposed amendments are not related to a work plan or commitment under a formal regulatory cooperation forum nor do they contribute to regulatory alignment between jurisdictions.
The marine cargo inspections provided by TC would ensure that ship operators comply with international requirements such as the SOLAS and its associated Codes and Standards, and in particular, the International Maritime Solid Bulk Cargoes Code. In addition, the Port State Control inspections would ensure foreign vessels entering Canadian waters are in compliance with the major international maritime conventions.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this proposal. The proposed Regulations are meant to ensure that the beneficiaries of inspection services pay a greater portion of the costs of these services, which will promote a better balance between the financial burden borne by service recipients and Canadians, regardless of sex, age, gender, ethnicity, culture, religion, language, etc.
Implementation, compliance and enforcement, and service standards
Implementation
The intended coming-into-force date of this regulatory proposal would be April 1, 2021. On this date, the new fee structure will take effect, and fees for marine cargo inspections, verification of shippers’ procedures, and bulk and/or packaged dangerous goods inspections as shown in Table 1 above, under the “Year 1” column, would become payable. Changes to pricing in year 2 and year 3 would take effect on April 1, 2022, and April 1, 2023, respectively. Annual fee adjustments due to indexation to the consumer price index would take effect one year after the implementation of the year 3 fees, or April 1, 2024.
Also on April 1, 2021, the new fees for tank wash and Port State Control inspections would become payable. Pricing for these fees does not change in year 2 or year 3, other than for adjustment due to indexation to the consumer price index, which would take effect on April 1, 2022.
Payment will be required at the time of submission of the service request for all fees other than marine cargo inspection fees and tank wash operations fees. These fees will be invoiced after the delivery of the service. TC accepts a number of forms of payment, including online payment, electronic funds transfer, cheque, and in person at a TC Centre.
TC will develop guidance and explanatory materials for both the program and the industry to ensure that the new fees are applied consistently across Canada, and to ensure that stakeholders can clearly understand how and when the fees will be applied and what their responsibilities and liabilities will be under the revised regulations, prior to the Regulations coming into force.
Compliance and enforcement
Compliance and enforcement of the marine safety requirements associated to the proposed Regulations are already in place under section 210 of the Canada Shipping Act, 2001. With respect to payment of the fees being proposed under these Regulations, any fees owing would constitute a debt due to Her Majesty in right of Canada and may be recovered in any court of competent jurisdiction, in accordance with section 36 of the Canada Shipping Act, 2001 and the relevant provisions of the Financial Administration Act.
Service standards
TC is proposing to implement service standards associated to the new fees that will satisfy industry clients and ensure the availability of inspectors and the timeliness of inspection services, as shown in Table 9. TC expects to meet the proposed service standards the vast majority of the time. In cases where a service standard is not met, a portion of the fee would be remitted to the client in accordance with the Service Fees Act, the Treasury Board Directive on Charging and Special Financial Authorities and the TC remissions policy.
| Type of Inspection | Proposed Service Standard |
|---|---|
| Cargo inspection | Issue a certificate or transcript, as applicable, within 24 hours of completing requested inspections. |
| Inspection of bulk and/or packaged dangerous goods | Issue certificate and/or transcript, as applicable, within 5 workings days after completion of satisfactory inspection. |
| Verification of shippers’ procedures fees: initial and modifications verifications and intermediate and renewal verifications | Issue a letter of approval within 10 business days after satisfactory completion of verification. |
| Tank wash inspection | Endorse the appropriate entries in the relevant documentation within 24 hours of completing a satisfactory inspection. |
| Port State Control inspection | Issue a transcript, report or rescission of a detention order, as applicable, within 24 hours of completing inspection. |
Contact
Amélie Boutour
Senior Marine Safety Inspector
Navigation Safety and Environmental Programs
Marine Safety and Security
Transport Canada
Place de Ville, Tower C, 10th Floor
330 Sparks Street
Ottawa, Ontario
K1A 0N5
Telephone: 613‑949‑0351
Fax: 613‑993‑8196
Email: amelie.boutour@tc.gc.ca
PROPOSED REGULATORY TEXT
Notice is given that the Governor in Council, pursuant to paragraph 35(1)(g)footnote a of the Canada Shipping Act, 2001footnote b, proposes to make the annexed Marine Safety Fees Regulations.
Interested persons may make representations concerning the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Amélie Boutour, Senior Marine Safety Inspector, Marine Safety and Security, Department of Transport, Place de Ville, Tower C, 10th Floor, 330 Sparks Street, Ottawa, Ontario K1A 0N5 (email: amelie.boutour@tc.gc.ca).
Ottawa, November 5, 2020
Julie Adair
Assistant Clerk of the Privy Council
Marine Safety Fees Regulations
Definition
Definition of Minister
1 In these Regulations, Minister means the Minister of Transport.
Fees
General
Non-application
2 Sections 28 to 30 of the Board of Steamship Inspection Scale of Fees do not apply in respect of any service for which a fee is payable under these Regulations.
Concentrates, Grains and Timber
Definitions
3 The following definitions apply in sections 4 and 5.
- Certificate of Readiness to Load
- means a certificate referred to in subsection 119(3), 128(2) or 140(3) of the Cargo, Fumigation and Tackle Regulations. (certificat de navire prêt à charger)
- Fitness to Proceed Certificate
- means a certificate referred to in subsection 120(2), 129(2) or 141(2) of the Cargo, Fumigation and Tackle Regulations. (certificat d’aptitude au transport)
Inspection
4 A fee of $616 is imposed on a vessel for each day that the Minister, following receipt of an application to issue a Certificate of Readiness to Load or a Fitness to Proceed Certificate to the vessel, inspects the vessel to establish that the requirements for the issuance of the certificate have been met, travels to and from the vessel or, at the vessel’s request, is on call or made available for such an inspection.
Issuance of documents after inspection
5 A fee of $834 is imposed on a vessel for each day that one or more of the following documents are issued to the vessel or given to the vessel’s master:
- (a) the first Certificate of Readiness to Load issued to the vessel in respect of a cargo of concentrates, grain or timber prior to the vessel’s departure from a port with the cargo;
- (b) a Fitness to Proceed Certificate; or
- (c) a written statement referred to in subsection 119(5), 128(4) or 140(5) of the Cargo, Fumigation and Tackle Regulations.
Verification of Shipper’s Procedures
Initial verification
6 A shipper who makes a request under paragraph 115.1(1)(a) or subsection 115.1(2) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,670 before the Minister performs an initial verification of the shipper’s procedures.
Intermediate verification
7 A shipper who makes a request under paragraph 115.1(1)(b) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $835 before the Minister performs an intermediate verification of the shipper’s procedures.
Renewal verification
8 A shipper who makes a request under paragraph 115.1(1)(c) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $835 before the Minister performs a renewal verification of the shipper’s procedures.
Inspections of Dangerous Goods at the Request of an Interested Person
Solid bulk cargo
9 An interested person who makes a request under subsection 116(1) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $750 before a marine safety inspector carries out an inspection.
Packaged goods
10 An interested person who makes a request under subsection 162(1) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $750 before a marine safety inspector carries out an inspection.
Tank Prewash Operations
Exemption
11 (1) If the master of a vessel requests an exemption from a tank prewash operation under subsection 63(2) of the Vessel Pollution and Dangerous Chemicals Regulations, a fee of $3,075 is imposed on the vessel.
More than 3.75 hours
(2) If a marine safety inspector requires more than 3.75 hours to assess the request, the following fees are imposed on the vessel, in addition to the fee set out in subsection (1):
- (a) $105 for each additional hour or fraction of an hour that the inspector assesses the request from 8:00 a.m. to 5:00 p.m., Monday to Friday, other than on a holiday;
- (b) $307 for each additional hour or fraction of an hour that the inspector assesses the request
- (i) before 8:00 a.m. or after 5:00 p.m., Monday to Friday,
- (ii) on a Saturday, or
- (iii) on a holiday, other than a Sunday; and
- (c) $336 for each additional hour or fraction of an hour that the inspector assesses the request on a Sunday.
Tank prewash operation
12 (1) If a marine safety inspector is present for a vessel’s tank prewash operation under subsection 63(5) of the Vessel Pollution and Dangerous Chemicals Regulations, a fee of $3,075 is imposed on the vessel.
More than 3.75 hours
(2) If the marine safety inspector is present at the tank prewash operation for more than 3.75 hours, the following fees are imposed on the vessel, in addition to the fee set out in subsection (1):
- (a) $105 for each additional hour or fraction of an hour that the inspector is present from 8:00 a.m. to 5:00 p.m., Monday to Friday, other than on a holiday;
- (b) $307 for each additional hour or fraction of an hour that the inspector is present
- (i) before 8:00 a.m. or after 5:00 p.m., Monday to Friday,
- (ii) on a Saturday, or
- (iii) on a holiday, other than a Sunday; and
- (c) $336 for each additional hour or fraction of an hour that the inspector is present on a Sunday.
Inspections of Foreign Vessels
Inspection following detention order
13 If, on request by a foreign vessel’s authorized representative, a marine safety inspector carries out an inspection of the foreign vessel for the purpose of verifying that measures indicated in a notice referred to in subsection 222(6) of the Canada Shipping Act, 2001 have been taken, a fee of $4,200 is imposed on the vessel.
Correction of deficiencies
14 If, on request by a foreign vessel’s authorized representative, a marine safety inspector carries out an inspection of the foreign vessel for the purpose of verifying that deficiencies identified in relation to a requirement under section 18 or 19 of the Vessel Safety Certificates Regulations that did not warrant the issuance of a detention order have been corrected, a fee of $1,870 is imposed on the vessel.
Amendments to these Regulations
15 Section 4 of these Regulations is replaced by the following:
Inspection
4 A fee of $682 is imposed on a vessel for each day that the Minister, following receipt of an application to issue a Certificate of Readiness to Load or a Fitness to Proceed Certificate to the vessel, inspects the vessel to establish that the requirements for the issuance of the certificate have been met, travels to and from the vessel or, at the vessel’s request, is on call or made available for such an inspection.
16 The portion of section 5 of these Regulations before paragraph (a) is replaced by the following:
Issuance of documents after inspection
5 A fee of $923 is imposed on a vessel for each day that one or more of the following documents are issued to the vessel or given to the vessel’s master:
17 Sections 6 to 8 of these Regulations are replaced by the following:
Initial verification
6 A shipper who makes a request under paragraph 115.1(1)(a) or subsection 115.1(2) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $2,070 before the Minister performs an initial verification of the shipper’s procedures.
Intermediate verification
7 A shipper who makes a request under paragraph 115.1(1)(b) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,035 before the Minister performs an intermediate verification of the shipper’s procedures.
Renewal verification
8 A shipper who makes a request under paragraph 115.1(1)(c) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,035 before the Minister performs a renewal verification of the shipper’s procedures.
18 Sections 9 and 10 of these Regulations are replaced by the following:
Solid bulk cargo
9 An interested person who makes a request under subsection 116(1) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,125 before a marine safety inspector carries out an inspection.
Packaged goods
10 An interested person who makes a request under subsection 162(1) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,125 before a marine safety inspector carries out an inspection.
19 Section 4 of these Regulations is replaced by the following:
Inspection
4 A fee of $750 is imposed on a vessel for each day that the Minister, following receipt of an application to issue a Certificate of Readiness to Load or a Fitness to Proceed Certificate to the vessel, inspects the vessel to establish that the requirements for the issuance of the certificate have been met, travels to and from the vessel or, at the vessel’s request, is on call or made available for such an inspection.
20 The portion of section 5 of these Regulations before paragraph (a) is replaced by the following:
Issuance of documents after inspection
5 A fee of $1,010 is imposed on a vessel for each day that one or more of the following documents are issued to the vessel or given to the vessel’s master:
21 Sections 6 to 8 of these Regulations are replaced by the following:
Initial verification
6 A shipper who makes a request under paragraph 115.1(1)(a) or subsection 115.1(2) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $2,500 before the Minister performs an initial verification of the shipper’s procedures.
Intermediate verification
7 A shipper who makes a request under paragraph 115.1(1)(b) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,250 before the Minister performs an intermediate verification of the shipper’s procedures.
Renewal verification
8 A shipper who makes a request under paragraph 115.1(1)(c) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,250 before the Minister performs a renewal verification of the shipper’s procedures.
22 Sections 9 and 10 of these Regulations are replaced by the following:
Solid bulk cargo
9 An interested person who makes a request under subsection 116(1) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,500 before a marine safety inspector carries out an inspection.
Packaged goods
10 An interested person who makes a request under subsection 162(1) of the Cargo, Fumigation and Tackle Regulations must pay a fee of $1,500 before a marine safety inspector carries out an inspection.
Consequential Amendments
Cargo, Fumigation and Tackle Regulations
23 Subsections 116(3) to (5) of the Cargo, Fumigation and Tackle Regulationsfootnote 2 are repealed.
24 Subsections 162(3) to (5) of the Regulations are repealed.
Board of Steamship Inspection Scale of Fees
25 Paragraph 17(c) of the Board of Steamship Inspection Scale of Feesfootnote 3 is replaced by the following:
- (c) the inspection is not an inspection referred to in section 13 or 14 of the Marine Safety Fees Regulations.
26 The heading before section 17.1 and sections 17.1 to 17.3 of the Regulations are repealed.
27 Paragraph 27(c) of the Regulations is replaced by the following:
- (c) the inspection is not an inspection referred to in section 13 or 14 of the Marine Safety Fees Regulations.
Repeal
28 The Port Wardens Tarifffootnote 4 is repealed.
Coming into Force
April 1, 2021
29 (1) Subject to subsections (2) and (3), these Regulations come into force on April 1, 2021.
April 1, 2022
(2) Sections 15 to 18 come into force on April 1, 2022.
April 1, 2023
(3) Sections 19 to 22 come into force on April 1, 2023.