Canada Gazette, Part I, Volume 157, Number 14: Regulations Amending the Marine Safety Fees Regulations (Vessel Registry Fees)

April 8, 2023

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: The Vessels Registry Fees Tariff has not been significantly modified since it came into force in 2002. As a result, existing fees recover only a small proportion of the cost of providing vessel registration services, and Canadian taxpayers are funding the majority of the costs for services that provide many direct benefits to vessel owners.

Transport Canada’s (TC) marine safety fees are spread across many regulations, which creates a burden for stakeholders who must refer to multiple regulations to determine which fees are applicable.

Many vessel registry services (e.g. vessel registration, transfers of ownership) apply to both the Large Vessel Register (LVR) and the Small Vessel Register (SVR) but there are inconsistencies between the LVR and SVR in terms of which services TC charges for (e.g. there is a fee to renew registration in the SVR but not the LVR).

Description: The Regulations Amending the Marine Safety Fees Regulations (Vessel Registry Fees) [the proposed Regulations] would repeal the Vessels Registry Fees Tariff and incorporate updated vessel registry fees into the Marine Safety Fees Regulations (MSFR). The proposed Regulations also include some new fees for some services currently provided for free, including a new fee for clients to renew their large vessel registrations. The 24 fees currently found in the Vessels Registry Fees Tariff would be repealed (23 fees under the General Part, and 1 fee under the Small Vessel Register) and 33 fees would be added to the Marine Safety Fees Regulations (19 fees under the General Part, and 14 fees under the Small Vessel Register).

This proposal would also adjust the MSFR structure slightly to make it easier to add other TC marine safety fees in the future, allowing fees to be found more easily by TC’s clients.

Rationale: Vessel registration establishes title to a vessel, provides approval of the vessel name, specifies a port of registry, provides security for a mortgage and grants the right to fly the Canadian flag on the vessel. Vessel registration supports TC’s marine safety programs and activities, such as inspecting vessels, certifying crew, and issuing safety documents. It also helps TC identify a vessel’s owner in case of an emergency or when vessels are wrecked, abandoned or hazardous and need to be remediated.

Overall, the proposed changes would ensure that TC’s fees more accurately reflect the cost to TC of providing the services and have those who benefit directly from services pay a greater share of the costs. As well, adding the proposed fees to the Marine Safety Fees Regulations would allow stakeholders to find marine safety fees in one, logical place.

As the changes to fees would be used to recover more of the costs incurred by TC and reduce the burden on Canadian taxpayers, the cost to vessel owners would be equivalent to the cost recovered by TC.

Even though the proposed Regulations would reduce or remove some existing vessel registry fees, vessel owners would need to pay increased fees for other services. Overall, vessel owners would bear a net cost of $7.46 million (present value expressed in 2023 Canadian dollars, discounted to the base year of 2023 at a 7% discount rate) during the 10-year period starting from December 2023–November 2024 to December 2032–November 2033.^{footnote 1}

Issues

Transport Canada’s vessel registry fees do not reflect the current cost to TC of providing vessel registry services, because the Vessels Registry Fees Tariff has not been significantly modified since it came into force in 2002. As a result, existing fees recover only a small proportion of the cost of providing these services, and Canadian taxpayers are funding the majority of the costs for services that provide many direct benefits to vessel owners. For example, a variety of stakeholders benefit from having their vessels registered, including pleasure craft owners who travel internationally or want an official name for their vessel; fishing companies; shipping companies; passenger vessel companies; ferry operators; tourism companies (whale watching, sport fishing, outfitters, diving, outdoor camps, river rafting, sailing); and companies providing other commercial marine services, such as dredging, tug and barge services, and offshore support. Such stakeholders must register their vessels. In addition, the Canadian Coasting Trade Act requires that domestic trade be carried on board Canadian registered vessels. Vessel registry services provide evidence of such registration. Additionally, vessel registry provides evidence of nationality (i.e. through a certificate of registry), protection of the flag state, and permits owners to use their vessel as collateral.

Many of these vessel registry services (e.g. vessel registration, updates to owner and vessel information, transfers of ownership, etc.) apply to both the LVR and SVR; however, there are inconsistencies between the LVR and SVR in terms of which services TC charges for. For example, in the LVR, there are currently fees charged for issuing provisional certificates, issuing replacement certificates, and issuing transcripts, while in the SVR, there are no fees charged for these same services. With regard to renewing certificates of registry in the LVR, no fees are charged, while in the SVR, fees are charged to clients when renewing their certificates of registry.

Currently, TC’s marine safety fees are spread across several regulations, which creates a burden for stakeholders who must refer to multiple regulations to determine the fees payable.

Background

TC operates a vessel registry program that administers the registration of vessels in Canada. Program services include registering new vessels, updating owner and vessel information, registering and discharging marine mortgages, transferring ownership of vessels, issuing vessel transcripts,^{footnote 2} conducting historical research on vessels, and listing bare-boat chartered vessels.^{footnote 3} As Canada’s national ship registry, TC’s vessel registry contains information on all vessels registered in Canada, as well as information on foreign vessels that are being temporarily listed in Canada. Through TC’s vessel registry program, Canada fulfills its obligations as a party to the United Nations Convention on the Law of the Sea, which requires that every member state establish the conditions for granting nationality to vessels, for registering vessels in its territory, and for the right of these vessels to fly its flag.

Vessel registration requirements are included in Part 2 of the Canada Shipping Act, 2001. Unless it is exempted under the Vessel Registration and Tonnage Regulations, a vessel must be registered if it is not a pleasure craft, is wholly owned by qualified persons, and is not registered, listed, or recorded in a foreign state. Data collected during the registration process is the foundation for other marine safety and security programs and departments including inspection and certification, enforcement, investigation, search and rescue, and research.

As of May 1, 2022, there were over 71 000 registered vessels in Canada. Vessels are registered in either the LVR or the SVR, depending on their size (gross tonnage) and other factors. The LVR contained 47 155 vessels. Of these, fishing vessels and pleasure crafts made up 83% of registered vessels. Large vessel registrations are concentrated in the Atlantic and Pacific regions. Some pleasure craft are also registered, namely those that have a marine mortgage, want an approved name, or that intend on travelling outside Canadian waters. The SVR contained 23 985 vessels. Of these, approximately 94% are workboats, passenger vessels or fishing vessels. Of note, 84% of small registered vessels are especially small, i.e. less than five gross tons. Small vessel registrations are spread across the country.

Many vessel registrations in the LVR and SVR contain out-of-date information, making it challenging for TC and other enforcement officials to identify a vessel’s current owner (especially in an emergency) and to deal with issues arising from wrecked, abandoned or hazardous vessels. The prevalence of this out-of-date information is due in large part to TC’s current process of automatically renewing large vessel registrations. TC does not require clients to provide updated owner and vessel information, but rather simply prints and mails certificates of registry to clients every three years. In addition, renewal periods for certificates would be extended from three to five years in the LVR and a fee would be charged for this service. These changes would ensure consistency in the renewal process for both the LVR and SVR. While the renewal process and validity period are non-regulatory in nature, the fee charged for this service would be added through the proposed amendments to the Marine Safety Fees Regulations.

With vessel registration fees, vessels 15 gross tonnage or less have access to the Small Vessel Compliance Program as well as monitoring inspections by TC. Both these programs help vessel owners to understand all the regulatory requirements that apply to them. For vessels more than 15 gross tonnage, vessel registration fees give automatic access to the Canadian inspection regime, which helps ensure that vessels participate in the statutory inspection program that is conducted by TC. The purpose of this program is to confirm that a vessel meets all the requirements related to safety, safety equipment, and vessel construction, which helps ensure the overall safety of vessels on the water in Canada.

Marine Safety Fees Regulations

This regulatory proposal is part of a broader initiative by TC to update many marine safety fees and consolidate them into the Marine Safety Fees Regulations (MSFR), which would allow stakeholders to find many marine safety fees in one place. The MSFR came into force on April 1, 2021, and currently contains fees related to marine cargo, foreign vessel inspections, and prewash services. The introduction of fees in the MSFR was considered the first phase of introducing and consolidating fees in the MSFR. Adding the vessel registry fees to the MSFR represents the second phase.

Fee modernization

The modernization of TC’s fee regime is a key component of the Department’s transformation plan. TC’s service and fee regime is being updated in consultation with stakeholders to provide more predictable service to industry, ensure the sustainability of TC services, and ensure that those who benefit from services pay an appropriate share of the costs of the services.

The current fees set out in the Vessels Registry Fees Tariff have not been updated in 20 years and do not reflect the time or the cost to TC of providing these services to the industry. Currently, existing fees recover approximately 30% of the total cost of providing vessel registry services. The remaining program costs are absorbed by TC and, by extension, Canadian taxpayers. However, the majority of the benefits from these services accrue directly to the requesters of the vessel registry services.

Service Fees Act

A modernized cost recovery regime for vessel registry would be consistent with the principles underlying the Service Fees Act, which represents the Government’s commitment to modernizing its services and delivering value to Canadians by establishing service standards, remitting a portion of fees paid to clients when service standards are not met, adjusting fees annually by the consumer price index, and making the results public through annual reporting. The modernized regime would also align with the goals of Transportation 2030: A Strategic Plan for the Future of Transportation in Canada, a modernization initiative championed by the Minister of Transport.

Low-materiality Fees Regulations

Currently, the Low-materiality Fees Regulations (LMFR) specify that certain fees (i.e. the ones that would be deemed material based on their values) in the Vessels Registry Fees Tariff are deemed “low-material.” This regulatory proposal would repeal the entire Vessels Registry Fees Tariff, in which case the reference to the Tariff in the LMFR would be defunct. The criteria for low-materiality set out in the LMFR would apply to all updated vessel registry fees in the MSFR. However, the proposed amendments include adding an annual adjustor to the MSFR so that all vessel registry fees, regardless of their materiality, would be adjusted on April 1 every year by the percentage change over 12 months in the April All-items Consumer Price Index for Canada, published by Statistics Canada, for the previous fiscal year. This would enable all TC’s marine fees to keep pace with inflation, thereby remaining current and relevant from a financial point of view. An adjustor in the MSFR that applies to all fees would also ensure that all fees are adjusted in a consistent manner, not just the material fees, making it easier for clients to understand annual fee adjustments, and for TC to track and report on its fees.

Objective

The objectives of the proposed amendments are to

ensure fees more closely reflect the cost to TC of providing vessel registry services;
ensure that those who benefit directly from such services pay a greater share of the costs; and
improve clarity, consistency, and ease of reference for clients.

Description

Proposed amendments

The proposed Regulations would repeal the Vessels Registry Fees Tariff and incorporate the proposed fees into the Marine Safety Fees Regulations. This proposal would also adjust the MSFR structure slightly to allow for the future inclusion of additional TC marine safety fees, allowing fees to be found more easily by TC’s clients. The proposed fees for vessel registry services are presented in tables 1 and 2 below, listing the current and proposed fees to show which fees would increase, decrease, be added or removed, or remain unchanged.

The proposed fees are not expected to impose a heavy burden on companies, communities, or individuals, as the proposed fee increases are modest in comparison to the costs of owning and operating a vessel. Furthermore, the fees to renew vessel registrations (the vessel registry service delivered most often) would be payable only every five years. While demand for client-desired services may or may not be impacted by the fee increases, they represent a smaller subset of the overall requests for vessel registry services.

Specifically, TC would modernize its vessel registry fees by

charging new fees for some services that are currently provided for free, including a new fee for clients to renew their large vessel registrations;
increasing fees for some services;
in some cases, lowering or removing fees; and
adjusting fees annually based on the Consumer Price Index.

The proposed Regulations would repeal the 24 fees in the Vessels Registry Fees Tariff (23 fees under the general part, and one fee under the Small Vessel Register) and introduce 33 fees in the Marine Safety Fees Regulations (19 fees under the general part, and 14 fees under the Small Vessel Register). Therefore, there would be 9 additional vessel registry fees added to the regulations.

These proposed changes would ensure that TC’s fees more accurately reflect the cost to TC of providing the services and aim to have those who benefit directly from services pay a greater share of the costs.

In addition to the cost to TC of providing vessel registry services, TC also conducted the following analyses to determine the proposed fees:

Public-private benefit assessment: TC considered the level of benefit that clients receive from vessel registry services, beyond the benefit received by the Canadian public generally.
International comparisons: TC examined how much other countries charge, if anything, for the same or similar vessel registry services.
Stakeholder impact considerations: TC examined the economic context in which the Canadian marine industry and individuals operate, as well as their unique circumstances and ability to pay fees.

These analyses and methodology informed the prices that were proposed in the Vessel Registry Program fee proposal, which was consulted upon with external clients in the summer and fall of 2021.

Table 1: Current and proposed Large Vessel Registry service fees
Fees are expressed in 2023 Canadian dollars
Vessel registry services — LVR	Current fee	Proposed fee	Cost recovery rate for proposed fees
1. Process an application for each of the following:	$250	$310
(a) initial registration of a vessel			55%
(b) issuance of a certificate of registry for a vessel that was previously registered in Canada			55%
2. Process an application to renew a certificate of registry	No fee	$90	32%
3. Process an application to issue a provisional certificate of registry	$150	$190	68%
4. Process an application to record a vessel that is going to be built or is under construction in Canada	$25	$80	43%
5. Extend the reservation of an approved name of a vessel	$125	$65	70%
6. Process a request to replace a certificate of registry or a provisional certificate of registry	$50	$50	72%
7. Process a request to issue a certificate of deletion	$50	$30	64%
8. Process an application for each of the following:	$150	$200
(a) transfer the ownership of a registered or recorded vessel			72%
(b) transfer the ownership of a registered or recorded vessel via special sale			72%
(c) transmit a mortgage in case of bankruptcy of the mortgagee or assignee			61%
(d) transmit a mortgage in case of bankruptcy of the owner			61%
(e) transmit a mortgage in case of death of the mortgagee or assignee			61%
(f) transmit a mortgage in case of death of the owner			61%
9. Process an application to change the name of a registered vessel	$250	$130	70%
10. Process an application to change the port of registry of a registered vessel	$150	$80	69%
11. Process an application to register a mortgage, including its discharge	$150	$180	55%
12. Process an application for each of the following:	$150	$120
(a) transfer a mortgage			74%
(b) change in the order of priority of registered mortgages			74%
13. Process a request for a certified transcript	$50	$75	64%
14. Process a request for an uncertified transcript	$20	$20	59%
15. Process a request to conduct a historical search for a vessel	$10	$120	64%
16. Process an application to issue a certificate of bare-boat registry	$200	$470	56%
17. Extend a certificate of bare-boat registry	$200	$190	68%
18. Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	$150	$470	56%
19. Extend the suspension of a Canadian certificate of registry, while vessel is listed in another state	No fee	$190	68%

The following services would continue to be provided at no charge:

Process an application to report alterations to a registered vessel
Process an application to update the name or address of an owner
Process an application to appoint an authorized representative
Process an application to update the name or address of an authorized representative, a mortgagee or assignee

Table 2: Current and proposed Small Vessel Registry service fees
“No fee” indicates TC is currently or is proposing to provide the service for free. For example, clients do not have to pay a fee to report alterations to a vessel; it is free, so the list of fees states “No fee.”
Vessel registry services — SVR	Current fees	Proposed fees	Cost recovery rate for proposed fees
1. Process an application for a vessel for each of the following:	$50	$110
(a) initial registration of a vessel			20%
(b) issuance of a certificate of registry for a vessel that was previously registered in Canada			20%
2. Process an application for a group of vessels^{table a2 note a} or a fleet^{table a2 note b} for each of the following:	$50	$190
(a) initial registration of a group of vessels or a fleet			17%
(b) issuance of a certificate of registry for a group of vessels or a fleet that were previously registered in Canada			0% (included in 1(b))
3. Process an application to renew a certificate of registry for a vessel, a group of vessels or a fleet	$50	$90	32%
4. Process an application to issue a provisional certificate of registry	No fee	$190	68%
5. Process a request to replace a certificate of registry or a provisional certificate of registry	No fee	$50	72%
6. Process a request to issue a certificate of deletion	No fee	$30	64%
7. Process an application for one of the following:	$50	$120
(a) transfer the ownership of a vessel			43%
(b) transmission of ownership of a vessel in case of bankruptcy by the owner			43%
(c) transmission of the ownership of a vessel in case of death of the owner			43%
8. Process a request for a certified transcript	No fee	$75	64%
9. Process a request for an uncertified transcript	No fee	$20	59%
10. Process an application to conduct a historical search for a vessel, per vessel	No fee	$120	21%
11. Process an application to issue a certificate of bare-boat registry, valid for 6 months	No fee	$470	56%
12. Extend a certificate of bare-boat registry	No fee	$190	68%
13. Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	No fee	$470	56%
14. Extend the suspension of a Canadian certificate of registry, while vessel is listed in another country	No fee	$190	68%
Table a2 note(s) Table a2 note a A group of vessels consists of two or more vessels of five gross tonnage or less that are owned by the same person and that are registered at the same time under different certificates. Return to table a2 note a referrer Table a2 note b A fleet consists of two or more identical vessels that have the same owner and that are registered under the same certificate. Return to table a2 note b referrer

The following services would continue to be provided at no charge:

Process an application to report alterations to a registered vessel
Process an application to update the name or address of an owner

Annual adjustment to fees

The proposed Regulations would adjust all fees contained in the MSFR each fiscal year on April 1 by the percentage change over 12 months in the April All-items Consumer Price Index for Canada, published by Statistics Canada, for the previous fiscal year. This would enable all TC’s marine fees to keep pace with inflation, thereby remaining current and relevant from a financial point of view. This would also ensure all fees are adjusted in a consistent manner; make it easier for clients to understand annual fee adjustments; and make it easier for TC to track and report on its fees.

Directive on Charging and Special Financial Authorities

The proposed fee changes were developed in accordance with the requirements of the Directive on Charging and Special Financial Authorities, which, among other things, outlines management practices and controls to ensure that external and internal charging practices for services are consistent across government and that the amounts charged respect legislative limits. In accordance with the Directive, TC developed and published a fee proposal and held public consultations in the summer and fall of 2021.

Regulatory development

Consultation

Consultation methods

TC conducted a variety of activities to engage with stakeholders and the public about the proposed amendments. The following is a list of the methods TC used to reach a broad range of stakeholders:

“Let’s Talk Transportation” web page. On August 13, 2021, TC published its Fee proposal for Vessel Registry Program for 90 days on the Department’s Let’s Talk Transportation consultation web page. The consultation was extended to January 25, 2022, to allow TC to present the fee proposal during the national Canadian Marine Advisory Council meeting in November 2021 and to receive comments after the meeting. The fee proposal described the proposed amendments to fees, and the context, rationale, costing and pricing analyses that were considered in developing the proposal. The Let’s Talk Transportation consultation web page included a discussion forum for stakeholders to comment and submit feedback to TC.
Email and social media. In August 2021, TC emailed members of the Canadian Marine Advisory Council, National Recreational Boating Advisory Council, and its established network of Indigenous communities, to promote the consultations. TC also promoted the consultations on social media. As well, TC shared the proposal with Fisheries and Oceans Canada and the Canadian Coast Guard, as these departments share some clients with TC (e.g. fishing vessel owners).^{footnote 4}
Canadian Marine Advisory Council. At the November 2021 national meeting of the Canadian Marine Advisory Council, TC presented to four standing committees (i.e. Recreational Boating, Domestic Vessel Regulatory Oversight, Fishing Vessels Safety, and the Environment). Stakeholders were invited to submit their views on the consultation web page.
Consulting with Indigenous Peoples. TC shared the fee proposal with its established network of Indigenous communities. TC also presented on the proposed changes at a meeting with the Inuit Tapiriit Kanatami (ITK) on January 25, 2022.

Feedback received and TC responses

During the consultation period, TC received 17 comments from stakeholders, including the public, a ferry operator, an Inuit regional government and a Métis group. TC summarized this feedback in a What we heard report, which was posted on TC’s “Let’s Talk Transportation” web page on April 20, 2022.

Overall, feedback received focused on

the fees themselves;
the renewal process for certificates of registry;
service standards; and
Northern considerations.

The feedback, along with TC’s responses to the feedback, are summarized in the table below:

Table 3: Feedback
Feedback category	Feedback received	TC responses
Fees	Feedback expressed concern about the effect of the fees on small businesses, and it was suggested that TC offer a fee exemption for inland vessels operated by camps and outfitters as well as commercial vessels under eight metres; reduce the fee to register a small vessel; and phase in the proposed fees over time to make the transition easier for small businesses.	Regarding this feedback, TC did not make any specific changes to the proposal, as accommodations for small businesses already exist and further accommodations were already included in the proposal. Many of the small vessels used by camps and outfitters are already exempt from registration requirements. TC also offers a discount for clients who must register groups or fleets of small vessels, where clients pay one fee for registering their group or fleet instead of a fee for registering each vessel within the group or fleet. As well, the proposed fees for several of the small vessel services (e.g. initial registration, transfer of ownership) are significantly lower than for large vessels. TC did not incorporate the suggestion to phase in fees, as the fees are payable every five years (e.g. to renew a registration) or on an ad hoc basis, as requested by the client (e.g. to transfer ownership of a vessel). A phased-in approach would be more appropriate and meaningful for fees that are payable on a more frequent basis, such as annually. Trying to implement a phased-in approach when renewal fees recur only every 5 years would effectively mean considering a very long (e.g. 10-year, 15-year) phase-in period to ensure most stakeholders benefit as equally as possible. Such an approach would not be practical.
Renewal process for certificates of registry	Stakeholders supported the proposed approach but suggested that TC improve how it communicates these changes. Stakeholders also want TC to ensure the renewal process for certificates of registry would be the same for both the LVR and the SVR.	TC agreed with this feedback, which aligns with TC’s intentions and proposed changes. When the proposed amendments come into effect, TC would communicate the changes, including to the renewal process, through emails to stakeholder associations and TC’s Indigenous network, updates to TC’s website, posting on social media, and presentations to the Canadian Marine Advisory Council (CMAC) and TC’s Indigenous network. As part of a broader modernization initiative, TC is working to align validity periods for marine safety programs. In this regard, the Chief Registrar would align the renewal process and validity periods for certificates of registry for the LVR and SVR. This would be done at the same time as the implementation of the fees in this regulatory proposal.
Service standards	One stakeholder suggested that same-day service for vessel registration services should be available.	TC does not have the resources to offer same-day service. While the majority of service standards would remain the same (either 2, 5, or 30 days depending on the service), some service standards would be shortened (from 30 to 5 days and from 45 to 30 days). TC would also introduce a new electronic vessel registry application, which is expected to improve processing times for vessel registration services.
Northern considerations	Feedback received included a submission from the Nunatsiavut Government, which indicated that the proposed fees are not high but asked that TC take into account the high cost of living in Inuit Nunangat.^{table a3 note a} In addition, TC was asked how it would ensure that vessel owners register their vessels, and how vessel registry information would be communicated to Inuit given that there are no TC offices in Nunatsiavut.	In response to this feedback, TC did not make specific changes to the proposed fees as TC had already considered numerous economic and pricing factors, including economic circumstances in different regions. Regarding how TC would ensure that vessel owners register their vessels, TC officials continue to communicate registration requirements, including fees, across Canada, through a variety of avenues such as regional CMACs, meetings between the Government and the six Inuit regions of the Canadian Arctic, and information distributed in Ship Safety Bulletins. While TC would continue with its current compliance and enforcement efforts, there would be a renewed emphasis on outreach and education to help increase awareness regarding regulatory requirements, including vessel registration requirements. While there is no TC office in Nunatsiavut, it should be noted that all vessel registry transactions are completed online or by paper application sent by mail. TC’s vessel registry counter services were discontinued in 2014, when the program was centralized in Ottawa.
Table a3 note(s) Table a3 note a Nunatsiavut is the homeland of the Labrador Inuit (Labradormiut). The territory is located in the northern part of the Labrador Peninsula. On December 1, 2005, the Labrador Inuit became the first Inuit in Canada to achieve self-government with the creation of the Nunatsiavut Government, their own regional government within the province of Newfoundland and Labrador. Return to table a3 note a referrer

Coordination with other government departments

The Department of Fisheries and Oceans and the Canadian Coast Guard are affected by this proposal because they and their stakeholders must register their vessels. As well, vessel registry data is used to identify vessels in an emergency, as well as wrecked, abandoned and hazardous vessels, which are a safety hazard. TC consulted with both departments on this proposal, and they did not raise concerns.

Modern treaty obligations and Indigenous engagement and consultation

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an analysis was undertaken to determine whether the proposal gives rise to modern treaty implications. The assessment examined the geographic scope and subject matter of the proposal in relation to modern treaties in effect. After examination, treaty obligations were identified in relation to ensuring minimum impacts on harvesting activities by treaty groups while making regulations. Initial engagement with Indigenous and Inuit communities was undertaken in 2021–2022. Further engagement targeting potentially impacted treaty groups will be undertaken by TC in alignment with the prepublication of this regulatory proposal in the Canada Gazette, Part I, to ensure they have the opportunity to comment, and that TC is in compliance with treaty obligations in advance of the proposed Regulations coming into force in 2023.

Instrument choice

The Government of Canada promotes a balanced approach to financing Government programs, whereby those who receive and benefit from program services should pay a reasonable share of the costs for those services. TC’s existing vessel registry fees do not reflect the current cost to TC of providing vessel registry services because the Vessels Registry Fees Tariff came into force in 2002 and has not been significantly modified since. Therefore, taxpayers are currently funding a majority of the costs for services which provide many direct benefits to vessel owners.

Regulations were chosen as the instrument to address this issue to ensure a more equitable balance of the financial burden of service delivery costs between service recipients and taxpayers. Fees must be set in regulations using the regulatory authorities provided under the Canada Shipping Act, 2001. Therefore, to amend existing fees and introduce new ones, regulatory amendments are necessary. No non-regulatory options were considered.

Regulatory analysis

The proposed amendments would reduce some existing vessel registry fees, which would save vessel owners $0.55 million in total (present value expressed in 2023 Canadian dollars, discounted to the base year of 2023 at a 7% discount rate) between December 2023 and November 2033. However, the proposed amendments would also increase other vessel registry fees, which would impose an additional cost of $8.01 million in total (present value expressed in 2023 Canadian dollars, discounted to the base year of 2023 at a 7% discount rate) on vessel owners during the same period. As a result, the total net cost to vessel owners would be $7.46 million from December 2023 to November 2033.^{footnote 5} Increased fees would be used to recover some of the costs incurred by TC to provide the vessel registry services, and therefore reduce the burden on Canadian taxpayers. For this reason, the cost to vessel owners would be equivalent to the cost recovered by TC.

To facilitate the implementation of the amendments, TC will inform stakeholders of this proposal via various communication channels. However, since such communications are expected to take place prior to the amendments being registered, their associated costs are not included in this analysis as per analytical requirement prescribed in the Policy on Cost-Benefit Analysis. It is also worth noting that the development of a new electronic vessel registry application is underway. The application aims to modernize the vessel registry database to improve usability for various levels of government stakeholders. However, the development of this new application is not directed by the proposed amendments. Rather, it was a policy decision, and the system would be implemented irrespective of the proposed amendments. Therefore, the costs associated with the application, development, and maintenance of this application, as well as the benefits, are not included in the analysis. However, the system will be used to support the implementation and charging of fees for the proposal.

Data used in this analysis (i.e. the number of annual transactions per service type) were also used to develop the analysis to inform the proposed service fees in the Vessel Registry fee proposal, which was shared for consultations with external stakeholders in the summer and fall of 2021. In addition, the proposed amendments would not impose additional operational costs on other federal departments and agencies other than to help ensure that their vessel registration information remains accurate and up to date.

Analytical framework

Benefits and costs associated with the proposed amendments 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 amendments. The regulatory scenario provides information on the intended outcomes as a result of the proposed amendments.

The proposed amendments would ensure that a greater portion of the total costs for vessel registry services are covered by the recipients of those services.

Following the Treasury Board Secretariat’s Policy on Cost-Benefit Analysis, the scope of this analysis is at the societal level, analyzing costs and benefits attributed to Canadians. Therefore, costs and benefits associated with changes in fees on Canadian vessel owners would have a neutral impact on Canadian society.

Unless otherwise stated, benefits and costs are in present values expressed in 2023 Canadian dollars, discounted to the base year of 2023 at a 7% discount rate, for a 10-year period between December 2023 and November 2033, with 2023 being when the proposed Regulations are expected to be registered.

Affected stakeholders

The proposed amendments would affect Canadian vessel owners or operators who use vessel registry services. As of May 1, 2022, there were 71 140 registered vessels in Canada.

The LVR, which contains 47 155 of those vessels, is primarily used to register

commercial vessels and government-owned vessels of 15 gross tonnage or more;
vessels of any size which have marine mortgages registered with TC or an approved vessel name;
pleasure crafts for which the owner wishes to have an approved vessel name, official number and port of registry, or on which the owner wishes to take on international voyages; and
vessels under construction that owners wish to temporarily record in the LVR.

The SVR, which contains 23 985 vessels, is for all non-pleasure craft under 15 gross tonnage that do not have a mortgage or an approved name, and commercial and government-owned vessels, barges, and commercial river rafts. It is worth noting that foreign vessels leased for operation in Canada need to be listed as bare-boat chartered vessels in either the LVR or SVR. Operators of these vessels, however, are normally Canadians who pay related fees, and therefore such bare-boat chartered vessels are considered Canadian vessels in this analysis.

Baseline and regulatory scenarios

Under the baseline scenario, vessel owners would pay the existing fees associated with vessel registry services, whereas under the regulatory scenario they would be required to pay for the vessel registry services in accordance with the proposed fees. The new electronic vessel registry application would exist under both the baseline and regulatory scenarios since it would be implemented irrespective of the proposed amendments.

Tables 4 and 5 below show the expected number of annual transactions per service type in the LVR and SVR, within the time frame of this analysis. The numbers were estimated based on the average number of transactions according to the most recent historical data from 2017 to 2020.^{footnote 11}

Table 4: Annual transactions per service type — Large Vessel Register
Vessel registry services — LVR	Average number of annual transactions
1. Process an application for each of the following:
(a) initial registration of a vessel	1 090
(b) issuance of a certificate of registry for a vessel that was previously registered	71
2. Process an application to renew a certificate of registry	6 908
3. Process an application to issue a provisional certificate of registry	20
4. Process an application to record a vessel that is going to be built or is under construction in Canada	129
5. Extend a vessel’s approved name reservation	81
6. Process a request to replace a certificate of registry or provisional certificate of registry	127
7. Process a request to issue a certificate of deletion	394
8. Process an application for each of the following:
(a) transfer the ownership of a registered or recorded vessel	2 209
(b) transfer the ownership of a registered or recorded vessel via special sale	61
(c) transmission of a mortgage in case of bankruptcy of the mortgagee or assignee	0
(d) transmission of a mortgage in case of bankruptcy of the owner	3
(e) transmission of a mortgage in case of death of the mortgagee or assignee	2
(f) transmission of the ownership of a vessel in case of death of the owner	108
9. Process an application to change the name of a registered vessel	423
10. Process an application to change the port of registry of a registered vessel	125
11. Process an application to register a mortgage, including its discharge	1 161
12. Process an application for each of the following:
(a) transfer a mortgage	11
(b) change in the order of priority of registered mortgages	9
13. Process a request for a certified transcript	1 090
14. Process a request for an uncertified transcript	1 539
15. Process a request to conduct a historical search for a vessel	23
16. Process an application to issue a certificate of bare-boat registry	12
17. Extend a certificate of bare-boat registry	5
18. Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	33
19. Extend the suspension of a certificate of registry of a Canadian vessel while vessel is listed in another state	1

Table 5: Annual transactions per service type — Small Vessel Register
Vessel registry services — SVR	Average number of annual transactions
1. Process an application for a vessel for each of the following:
(a) Initial registration of a vessel	446
(b) Issuance of a certificate of registry for registering a vessel that was previously registered in Canada	24
2. Process an application for a group of vessels or a fleet for one of the following:
(a) Initial registration of a group of vessels or fleet	364
(b) Issuance of a certificate of registry for registering a group of vessels or a fleet that was previously registered in Canada	0
3. Process an application to renew a certificate of registry	905
4. Process an application to issue a provisional certificate of registry	0
5. Process a request to replace a certificate of registry or provisional certificate of registry	500
6. Process a request to issue a deletion certificate	2
7. Process an application for one of the following:
(a) transfer the ownership of a vessel	310
(b) transfer the ownership of a vessel in case of bankruptcy by the owner	0
(c) transfer the ownership of a vessel in case of death of the owner	0
8. Process a request for a certified transcript	93
9. Process a request for an uncertified transcript	0
10. Process an application to conduct a historical search of the Register for a vessel, per vessel	0
11. Process an application to issue a certificate of bare-boat registry	0
12. Extend a certificate of bare-boat registry	0
13. Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	0
14. Extend the suspension of a certificate of registry of a Canadian vessel while the vessel is listed in another country	0

Source: Transport Canada

Costs and benefits

Costs

Cost to Canadian vessel owners

Canadian vessel owners (including operators of bare-boat chartered vessels) would assume additional costs as fees for some vessel registry services would be increased, as presented in tables 1 and 2 above. By multiplying the increase in the service fees by the annual transactions of these services listed in tables 4 and 5, it was estimated that the total cost to Canadian vessel owners would be $8.01 million from December 2023 to November 2033. Of this total, 84% ($6.74 million) would be borne by LVR service users and 16% ($1.27 million) by SVR service users.

Cost to Canadians (represented by Transport Canada)

Vessel owners would pay less in fees for some services, as seven fees would decrease. Such cost savings to vessel owners would therefore be an additional cost to Canadian taxpayers (represented by TC). This additional cost is estimated to be $0.55 million in total.

Benefits

Benefits to Canadian vessel owners

As listed in tables 1 and 2, seven fees would decrease. As a result, Canadian vessel owners (including operators of bare-boat chartered vessels) would see a cost saving of $0.55 million in total, all of which would be assumed by LVR service users.

Benefit to Canadians (represented by Transport Canada)

As previously stated, the proposed amendments would result in a rebalancing of costs from Canadian taxpayers (represented by TC) to users of vessel registry services. Therefore, additional fees paid by Canadian vessel owners (i.e. $8.01 million in total) would reduce the financial burden on Canadians.

The Fee proposal for Vessel Registry Program indicates that approximately 80% of the benefits from TC’s Vessel Registry services accrue to clients. It also concludes that while approximately 30% of TC’s cost is recovered by existing fees, the proposed fees would recover, in aggregate, 44% of TC’s cost (the cost recovery rates for the individual service types range from 16% to 74%).

Cost-benefit statement

Number of years: 10 (Dec. 2023–Nov. 2024 to Dec. 2032–Nov. 2033)
Base year for costing: 2023
Present value base year: 2023
Discount rate: 7%

Table 6: Monetized costs (present values in millions)
Impacted stakeholders	Costs description	Period 1	Period 2–9 (annual average)	Period 10	Total present value	Annualized value
Canadian vessel owners (including operators of bare-boat chartered vessels)	Increase in service fees	$1.07	$0.80	$0.58	$8.01	$1.14
Canadians (represented by TC)	Reduction of service fees	$0.07	$0.05	$0.04	$0.55	$0.08
All stakeholders	Total costs	$1.14	$0.85	$0.62	$8.56	$1.22

Table 7: Monetized benefits (present values in millions)
Impacted stakeholders	Benefit description	Period 1	Period 2–9 (annual average)	Period 10	Total present value	Annualized value
Canadian vessel owners (including operators of bare-boat chartered vessels)	Reduction of service fees	$0.07	$0.05	$0.04	$0.55	$0.08
Canadians (represented by TC)	Recovered costs from fees paid by Canadian vessel owners	$1.07	$0.80	$0.58	$8.01	$1.14
All stakeholders	Total benefits	$1.14	$0.85	$0.62	$8.56	$1.22

Table 8: Summary of monetized costs and benefits (present values in millions)
Impacts	Period 1	Period 2–9 (annual average)	Period 10	Total present value	Annualized value
Total costs	$1.14	$0.85	$0.62	$8.56	$1.22
Total benefits	$1.14	$0.85	$0.62	$8.56	$1.22
NET IMPACT	$0.00	$0.00	$0.00	$0.00	$0.00

Qualitative benefits

Increasing consistency between the Large and Small Vessel Registers and other programs

The proposed amendments would improve consistency in the regulations governing the LVR and the SVR, as there would be more consistency between the services and fees offered under the LVR and the SVR.

Improving client experience

To make it easier for TC clients to find the fees that apply to their vessels, the Vessels Registry Fees Tariff would be repealed and the modernized fees would be incorporated into the MSFR, which will eventually encompass most marine safety fees. With this approach, TC’s marine safety clients would be able to refer to one regulation for most of their marine safety fees. The proposed Regulations would also separate the MSFR into parts to make it easier for clients to find relevant fees.

Distributional analysis

Impacts on LVR service users versus SVR services users

Users of LVR services would be impacted more significantly than those of SVR services. More specifically, 83% of the net cost ($6.19 million) would be borne by LVR services users, while SVR service users would bear the remaining 17% of the net cost ($1.27 million). Table 9 below shows the impacts on vessel registry service users by vessel register.

Table 9: Impacts on vessel registry service users by vessel register
Vessel register	Total cost	% of total cost	Total benefit	% of total benefit	Net cost	% of net cost
LVR	$6.74	84%	$0.55	100%	$6.19	83%
SVR	$1.27	16%	$0.00	0%	$1.27	17%
Total	$8.01	100%	$0.55	100%	$7.46	100%

Impacts on vessel registry service users by regions

The proposed amendments would impact vessel registry service users across Canada. Large vessels are mostly registered in the Atlantic and the Pacific regions, followed by Quebec, Ontario, and the Prairie and Northern regions; small vessels are mainly registered in the Pacific region, followed by Ontario, Atlantic, Quebec, and the Prairie and Northern regions. Tables 10.1 and 10.2 below show the impact distribution by region for both the LVR and SVR service users.

Table 10.1: Impacts on vessel registry service users by region — LVR
Region	Total cost	% of total cost	Total benefit	% of total benefit	Net cost	% of net cost
Atlantic^{table b5 note a}	$2.36	35%	$0.19	35%	$2.17	35%
Pacific^{table b5 note b}	$2.02	30%	$0.16	30%	$1.86	30%
Quebec	$1.28	19%	$0.10	19%	$1.18	19%
Ontario	$1.01	15%	$0.08	15%	$0.93	15%
Prairie and Northern^{table b5 note c}	$0.07	1%	$0.01	1%	$0.06	1%
Total	$6.74	100%	$0.55	100%	$6.19	100%
Table b5 note(s) Table b5 note a Including New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. Return to table b5 note a referrer Table b5 note b Including British Columbia. Return to table b5 note b referrer Table b5 note c Including Yukon, Nunavut and Northwest Territories. Return to table b5 note c referrer

Table 10.2: Impacts on vessel registry service users by region — SVR
Region	Total cost	% of total cost	Total benefit	% of total benefit	Net cost	% of net cost
Pacific	$0.38	30%	$0.00	0%	$0.38	30%
Ontario	$0.25	20%	$0.00	0%	$0.25	20%
Atlantic	$0.24	19%	$0.00	0%	$0.24	19%
Quebec	$0.23	18%	$0.00	0%	$0.23	18%
Prairie and Northern	$0.17	13%	$0.00	0%	$0.17	13%
Total	$1.27	100%	$0.00	0%	$1.27	100%

Sensitivity analysis

As previously described, a number of assumptions have been made to estimate the costs of the proposed amendments. To address the effect of uncertainty and variability on these assumptions, a sensitivity analysis was conducted, where variables are assigned different values, and outcomes are re-evaluated. A sensitivity analysis was performed on the following variables: analytical time frame and discount rates.

Analytical time frame

A 10-year period analytical time frame was used for the central analysis, whereas the sensitivity analysis presents the results should a 15-year or 20-year time frame 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 were no discounting.

Table 11.1: Sensitivity analysis results — Analytical time frame
Parameter	Total net cost
10 years^{table b7 note a}	$7.46M
15 years	$9.68M
20 years	$11.26M
Table b7 note(s) Table b7 note a Central scenario used in the main analysis. Return to table b7 note a referrer

Table 11.2: Sensitivity analysis results — Discount rates
Parameter	Total net cost
Undiscounted	$9.94M
3%	$8.73M
7%^{table b8 note a}	$7.46M
Table b8 note(s) Table b8 note a Central scenario used in main analysis. Return to table b8 note a referrer

Small business lens

The small business lens applies as there are impacts on small businesses^{footnote 6} associated with the proposed amendments. Most companies affected, which are vessel owners, would be small businesses. The main sectors whose businesses own vessels and use the vessel registry services are the fishing industry, the aquaculture industry, and the water transportation industry. Ninety-nine percent of the three sectors (North American Industry Classification System code 1141, 1125 and 483) are firms that have fewer than 100 employees.^{footnote 7} As a result, it was estimated that the proposed amendments would impose a net cost of $7.39 million in total on small businesses over the 10-year analytical period.^{footnote 8}

To mitigate impacts on small businesses, TC is proposing to maintain a discount for clients who register groups or fleets of small vessels. Clients would pay one fee for registering their group or fleet, instead of a fee for registering each vessel within the group or fleet. As well, for several of the services for small vessels (e.g. initial registration, transfer of ownership), TC is proposing fees that are lower than those for large vessels, giving consideration to the application of the small business lens as set out in the Policy on Limiting Regulatory Burden on Business. TC is also proposing to better align the SVR and the LVR as there are inconsistencies in terms of which services TC charges for (e.g. there is a fee to renew registration in the SVR but not the LVR, there are fees for bare-boat certificates in the LVR but not the SVR) to make it clearer and fairer for clients.

Small business lens summary

Estimated number of small businesses impacted: 18 070
Number of years: 10 (December 2023—November 2024 to December 2032—November 2033)
Base year for costing: 2023
Present value base year: 2023
Discount rate: 7%

Table 12: Compliance costs (present value)
Activity	Annualized value	Present value
Total compliance cost (vessel registry services fees for all impacted small business)	$1.13M	$7.93M
Total benefit (Reduction of existing service fees)	$0.08M	$0.54M
Net cost	$1.05M	$7.39M
Net cost per impacted small business	$58M	$409M

One-for-one rule

The one-for-one rule applies since an existing regulatory title is being repealed; therefore, the proposal is considered a title out. The proposal is repealing the Vessels Registry Fees Tariff and amending the Marine Safety Fees Regulations.

Regulatory cooperation and alignment

This regulatory proposal is not being introduced in relation to an international agreement or obligation, nor does it have any impacts related to a work plan or commitment under a formal regulatory cooperation forum.

TC has an international obligation under Article 94 of the United Nations Convention on the Law of the Sea to establish and maintain a register of vessels to improve maritime safety and security. Each member state is responsible for setting its own fees.

In terms of setting the fees in this proposal, TC compared Canada’s vessel registry fees to those of countries with similar levels of economic development to Canada; specifically, the United Kingdom (U.K.), the United States (U.S.), Australia and New Zealand.

Canada’s fees for large vessel registration are generally in the range of fees in the United Kingdom (C$265–C$339) and the United States (starting at C$180), whereas Australia (C$1,522–C$2,609) and New Zealand (C$1,571–C$3,693) have much higher registration fees for large vessels than Canada. For small vessel registrations, Canada’s fees are generally in the range of fees in the United Kingdom (C$61) and New Zealand (C$337) which, like Canada, have a separate fee for registering small vessels. Overall, the fees TC is proposing for vessel registry services outlined in this proposal are largely in line with or below those of the comparable countries noted above.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, and the TC Policy Statement on Strategic Environmental Assessment (2013), the strategic environmental assessment (SEA) process was followed for this proposal and a sustainable transportation assessment was completed. No important environmental effects are anticipated as a result of this proposal. The assessment took into account potential effects to the environmental goals and targets of the Federal Sustainable Development Strategy (FSDS).

Gender-based analysis plus

The proposed amendments are not expected to have any differential impacts based on identity factors such as gender, race, sexuality, ethnicity, and/or religion. The data captured as part of TC’s vessel registry process does not record gender or other identity information. The primary requirement to register a vessel is predicated upon the applicant being a “Qualified Person” defined as being a Canadian citizen or a permanent resident without referring to the applicant’s gender. In addition, the definition also includes a corporation incorporated under the laws of Canada or a province.

Implementation, compliance and enforcement, and service standards

Implementation

Implementation of the proposed Regulations

The proposed Regulations would come into force upon publication in the Canada Gazette, Part II.

Stakeholders would be informed of the proposed regulatory changes through regular communication tools, such as Ship Safety Bulletins, updates on the TC website and updates at both the regional and national CMACs. In addition, TC would use its internal communications to update marine safety inspectors and other internal stakeholders.

An application for a service or request sent before the proposed Regulations come into force would be subject to the fees that are in force on that day. An application is considered sent on the day on which it is delivered or, if it is sent by mail, the day on which it is mailed, with the date of the postmark being evidence of that day.

The IT systems that TC currently uses to manage vessel registries are outdated and have limited capabilities (e.g. no reporting functionality).

TC is working to digitize service delivery by developing a modernized IT system that will

allow for time tracking activity, performance management and better workload management capabilities;
support the implementation and charging of fees for requested services;
automate reporting to meet legislative and regulatory requirements;
offer online submission of applications to improve stakeholders’ experience;
improve data quality, reduce duplication, and increase information reliability;
improve data access and sharing of information with internal and external stakeholders while continuing to protect the data in a secure system; and
reduce the number of paper-based processes.

TC is modernizing the services it provides by developing digital service delivery (i.e. a platform to request services online and pay via credit card, Interac), to first supplement and then mostly replace the existing legacy application methods (i.e. paper-based applications with manual payment methods, such as cheques and money orders). The overall objective is to offer streamlined services to better serve clients. It is important to understand that throughout the online service request and delivery processes, TC works actively with clients to help ensure that applications are complete and contain all the necessary information to be processed in a timely manner. It is TC’s overall approach to work collaboratively with clients to facilitate a smooth service delivery process. However, clients would not be obliged to use the new system; clients may continue to submit paper-based applications if they wish.

TC is required to meet the service standards that are published for each fee. TC will apply the remission policy to all material fees based on the criteria in the Low-materiality Fees Regulations.

The new vessel registry system will be deployed through various releases as applications are built. Development work is ongoing and is expected to be completed before the coming into force of the new and updated fees. However, if any challenges or delays occur, existing processes would be leveraged to ensure continued service.

Compliance and enforcement

By introducing a new fee-supported requirement for the renewal of vessel registration certificates, TC is working towards improving the integral quality of the owner and vessel information required by federal government agencies, including the Canadian Coast Guard, Joint Rescue Coordination Center, Transportation Safety Board of Canada, Royal Canadian Mounted Police, and Canada Border Services Agency. These federal agencies use vessel registry information to confirm ownership in marine emergency situations, when crossing Canadian borders, and during marine-related investigations involving the safety of life, property, and the environment. These federal agencies were consulted about the proposed Regulations and did not raise any concerns. It is not expected that the proposed amendments would have any operational impacts for these organizations other than to help ensure that vessel registration information remains accurate and up to date.

As noted above, TC’s approach is to work with and educate clients on the requirement surrounding vessel registration. To that end, education, outreach and communications (i.e. plenary sessions at the Canadian Marine Advisory Council, public consultation sessions), are the primary tools that TC would employ to help support compliance with the proposed amendments. When clients submit their vessel registration applications, they must also pay at the same time. The application is not processed until the fee for the service is received. Enforcement of vessel registration requirements is conducted by TC marine safety inspectors. Administrative monetary penalties (AMP) may be imposed to further reinforce compliance with these regulations. If a vessel is required to be registered but it is not, the owner of the vessel is in violation of the Canada Shipping Act, 2001 and may be subject to an AMP. This hybrid compliance and enforcement approach is continually revisited and revised, as circumstances warrant.

With the introduction of a new electronic vessel registry application, TC is working to avoid duplication and confusion of data caused by legacy databases relied upon by federal government agencies, as well as with other levels of government. This new application will include the capacity to flag issues or alert vessel registrars on matters such as incomplete or questionable vessel ownership records, misinterpretations of registry requirements, or cases of deliberate misrepresentation of vessel specifications, which are often provided by errant vessel owners, appointed officials, or by domestic businesses supporting the fishing industry.

Service standards

Table 13: Current and proposed Large Vessel Registry service standards
Vessel registry services — LVR^{table b10 note a}	Current service standards	Proposed service standards
1. Process an application for each of the following: (a) initial registration of a vessel (b) issuance of a certificate of registry for a vessel that was previously registered in Canada	30 days	30 days
2. Process an application to renew a certificate of registry	Not applicable because renewals are currently automatic.	30 days
3. Process an application to issue a provisional certificate of registry	5 days	5 days
4. Process an application to record a vessel that is going to be built or is under construction in Canada	5 days	5 days
5. Extend a vessel’s approved name reservation	30 days	5 days
6. Process a request to replace a certificate of registry or a provisional certificate of registry	5 days	5 days
7. Process a request to issue a certificate of deletion	5 days	5 days
8. Process an application for each of the following: (a) transfer the ownership of a registered or recorded vessel, other than by a special state (b) transfer the ownership of a registered or recorded vessel via special sale (c) transmit a mortgage in case of bankruptcy of the mortgagee or assignee (d) transmit the ownership of a vessel in case of bankruptcy of the owner (e) transmit a mortgage in case of death of the mortgagee or assignee (f) transmit the ownership of a vessel in case of death of the owner	30 days	30 days
9. Process an application to change the name of a registered vessel	30 days	30 days
10. Process an application to change the port of registry of a registered vessel	30 days	30 days
11. Process an application to register a mortgage, including its discharge	5 days	5 days
12. Process an application for each of the following: (a) transfer a mortgage (b) change the order of priority of registered mortgages	5 days	5 days
13. Process a request for a certified transcript	2 days	2 days
14. Process a request for an uncertified transcript	2 days	2 days
15. Process a request to conduct a historical search for a vessel	30 days	30 days
16. Process an application to issue a certificate of bare-boat registry, valid for 6 months	5 days	5 days
17. Extend a certificate of bare-boat registry	5 days	5 days
18. Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	Suspend: 30 days Reinstate: 30 days	5 days
19. Extend the suspension of the registration of a Canadian vessel, while the vessel is listed in another state	No service standard	5 days
20. Process an application to report alterations to a registered vessel	30 days	30 days
21. Process an application to update the name or address of an owner	30 days	30 days
22. Process an application to appoint an authorized representative	No service standard	30 days
23. Process an application to update the name or address of an authorized representative, a mortgagee or assignee	No service standard	30 days
Table b10 note(s) Table b10 note a Service standards are the same for electronic applications and non-electronic applications; they would count from the day that an application or request was received. Return to table b10 note a referrer

Table 14: Current and proposed Small Vessel Registry Service Standards
Number of days = business days
Completed applications must be received
Vessel Registry Services — SVR^{table b11 note a}	Current service standards	Proposed service standards
1. Process an application for one following: (a) initial registration of a vessel (b) issuance of a certificate of registry for a vessel that was previously registered in Canada	45 days	30 days
2. Process an application for a group of vessels or a fleet for each of the following: (a) initial registration of a group of vessels or a fleet (b) issuance of a certificate of registry for registering a group of vessels or a fleet that was previously registered in Canada	45 days	30 days
3. Process an application to renew a certificate of registry for a vessel, a group of vessels or a fleet	45 days	30 days
4. Process an application to issue a provisional certificate of registry	No service standard	5 days
5. Process a request to replace a certificate of registry or a provisional certificate of registry	No service standard	5 days
6. Process a request to issue a certificate of deletion	No service standard	5 days
7. Process an application for one of the following: (a) transfer the ownership of a vessel (b) transfer the ownership of a vessel in case of bankruptcy by the owner (c) transfer the ownership of a vessel in case of death of the owner	45 days	30 days
8. Process a request for a certified transcript	No service standard	2 days
9. Process a request for an uncertified transcript	No service standard	2 days
10. Process an application to conduct a historical search of the Register for a vessel, per vessel	No service standard	30 days
11. Process an application to issue a certificate of bare-boat registry, valid for 6 months	No service standard	5 days
12. Extend a certificate of bare-boat registry	No service standard	5 days
13. Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	No service standard	5 days
14. Extend the suspension of a Canadian certificate of registry, while vessel is listed in another country	No service standard	5 days
15. Process an application to report alterations to a registered vessel	No service standard	30 days
16. Process an application to update the name or address of an owner	No service standard	30 days
Table b11 note(s) Table b11 note a Service standards are the same for electronic applications and non-electronic applications; they would count from the day that an application or request was received. Return to table b11 note a referrer

Contact

Krista Kendall
Chief Registrar
Navigation Safety and Environmental Programs
Transport Canada
330 Sparks Street
Ottawa, Ontario
K1A 0N5
Email: VRConsultationsIB@tc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Regulations Amending the Marine Safety Fees Regulations (Vessel Registry Fees) under paragraph 35(1)(g)^{footnote a} of the Canada Shipping Act, 2001 ^{footnote b}.

Interested persons may make representations concerning the proposed regulations within 60 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the Chief Registrar, Department of Transport, Place de Ville, Tower C, 330 Sparks Street, 10th Floor, Ottawa, Ontario K1A 0N5 (email: vr-ib@tc.gc.ca).

Ottawa, March 31, 2023

Wendy Nixon
Assistant Clerk of the Privy Council

Regulations Amending the Marine Safety Fees Regulations (Vessel Registry Fees)

Amendments

1 Section 1 of the Marine Safety Fees Regulations ^{footnote 9} and the heading before it are replaced by the following:

Definition of Minister

1 In these Regulations, Minister means the Minister of Transport.

Annual adjustment

1.1 The fees set out in these Regulations are to be adjusted in each fiscal year on April 1 by the percentage change over 12 months in the April All-items Consumer Price Index for Canada, as published by Statistics Canada under the Statistics Act, for the previous fiscal year.

2 The heading “Fees” before section 2 of the Regulations is replaced by the following:

PART 1
Marine Cargo Inspection Fees

Definitions

Definitions

1.2 The following definitions apply in this Part.

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)

3 The heading before section 9 of the Regulations is replaced by the following:

PART 2
Environmental Protection Inspection Fees

4 The heading before section 11 of the Regulations is replaced by the following:

PART 3
Foreign Vessel Inspection Fees

5 The heading before section 13 and sections 13 to 16 of the Regulations are replaced by the following:

PART 4
Vessel Registry Fees

Payment of fee

13 A fee for a service referred to in this Part is payable on application for that service.

Canadian Register of Vessels

14 The Canadian Register of Vessels consists of a general part and another part entitled the Small Vessel Register. The applicable fees for processing an application or request for a service related to the general part or Small Vessel Register of the Canadian Register of Vessels are set out in sections 15 and 16 respectively.

Canadian Register of Vessels — general part

15 (1) The following vessels must be registered, listed or recorded in the general part of the Canadian Register of Vessels:

(a) a vessel of more than 15 gross tonnage;
(b) a vessel that is about to be built or that is under construction in Canada;
(c) a vessel in respect of which a mortgage is registered;
(d) a vessel that has an approved name; and
(e) a pleasure craft.

Fees

(2) The fee payable for processing an application or request for a service related to the general part of the Canadian Register of Vessels set out in column 1 of the table to this subsection is the fee set out in column 2.

Fees — General Part of the Canadian Register of Vessels
Item	Column 1 Service	Column 2 Fee ($)
1	Process an application for each of the following: (a) initial registration of a vessel (b) issuance of a certificate of registry for a vessel that was previously registered in Canada	310
2	Process an application to renew a certificate of registry	90
3	Process an application to issue a provisional certificate of registry	190
4	Process an application to record a vessel that is about to be built or is under construction in Canada	80
5	Process a request to extend the reservation of an approved name of a vessel	65
6	Process a request to replace a certificate of registry or a provisional certificate of registry	50
7	Process a request to issue a certificate of deletion	30
8	Process an application for each of the following: (a) transfer the ownership of a registered or recorded vessel, other than by special sale (b) transfer the ownership of a registered or recorded vessel via special sale (c) transmit a mortgage in case of bankruptcy of the mortgagee or assignee (d) transmit the ownership of a vessel in case of bankruptcy of the owner (e) transmit a mortgage in case of death of the mortgagee or assignee (f) transmit the ownership of a vessel in case of death of the owner	200
9	Process an application to change the name of a registered vessel	130
10	Process an application to change the port of registry of a registered vessel	80
11	Process an application to register a mortgage, including its discharge	180
12	Process an application for each of the following: (a) transfer of a mortgage (b) change in the order of priority of registered mortgages	120
13	Process a request for a certified transcript	75
14	Process a request for an uncertified transcript	20
15	Process a request to conduct a historical search for a vessel	120
16	Process an application to issue a certificate of bare-boat registry	470
17	Process an application to extend a certificate of bare-boat registry	190
18	Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	470
19	Process an application to extend the suspension of the registration of a Canadian vessel while the vessel is listed in another state	190

Registration or listing in only one register

(3) Vessels that are to be registered or listed under this section must not be registered or listed in the Small Vessel Register.

Services with no fees

(4) No fee is payable for the processing of an application or request for the following services related to the general part of the Canadian Register of Vessels:

(a) reporting alterations to a registered vessel;
(b) updating the name or address of an owner;
(c) appointing an authorized representative;
(d) updating the name or address of an authorized representative, mortgagee or assignee; and
(e) transmitting to a surviving joint owner in case of death of another owner.

Small Vessel Register

16 (1) A vessel of 15 gross tonnage or less, other than a pleasure craft and a vessel referred to in paragraph 15(1)(b), (c) or (d), must be registered or listed in the Small Vessel Register.

Application for single vessel or grouping of application

(2) An application or request for a service related to the Small Vessel Register is presented in respect of

(a) a single vessel;
(b) a fleet of two or more identical vessels, including government vessels, that are owned by the same owner and
- (i) are human powered,
- (ii) are 8.5 m or less in length or less and that are propelled by sail alone, or
- (iii) are equipped with one or more primary engines that have an aggregate propulsion power of less than 7.5 kW; or
(c) a group of two or more vessels, other than government vessels, of 5 gross tonnage or less that are owned by the same owner and that are registered at the same time under different certificates of registry.

Fees

(3) The fee payable for processing an application or request for a service related to the Small Vessel Register set out in column 1 of the table to this subsection is the fee set out in column 2.

Fees — Small Vessel Register
Item	Column 1 Service	Column 2 Fee ($)
1	Process an application for each of the following: (a) initial registration of a vessel (b) issuance of a certificate of registry for a vessel that was previously registered in Canada	110
2	Process an application for a group of vessels or a fleet for each of the following: (a) initial registration of a group of vessels or a fleet (b) issuance of a certificate of registry for a group of vessels or a fleet that were previously registered in Canada	190
3	Process an application to renew a certificate of registry for a vessel, a group of vessels or a fleet	90
4	Process an application to issue a provisional certificate of registry	190
5	Process a request to replace a certificate of registry or a provisional certificate of registry	50
6	Process a request to issue a certificate of deletion	30
7	Process an application for each of the following: (a) transfer the ownership of a registered vessel, a group of vessels or a fleet (b) transmit the ownership of a vessel, a group of vessels or a fleet in case of bankruptcy by the owner (c) transmit the ownership of a vessel, a group of vessels or a fleet in case of death of the owner	120
8	Process a request for a certified transcript	75
9	Process a request for an uncertified transcript	20
10	Process a request to conduct a historical search for a vessel	120
11	Process an application to issue a certificate of bare-boat registry	470
12	Process an application to extend a certificate of bare-boat registry	190
13	Process an application to suspend the registration of a Canadian vessel to allow the vessel to be listed in a foreign state, including the reinstatement of the registration after the vessel is delisted from that state	470
14	Process an application to extend the suspension of the registration of a Canadian vessel while the vessel is listed in a foreign state	190

Services with no fees

(4) No fee is payable for the processing of an application or request for the following services related to the Small Vessel Register:

(a) reporting alterations to a registered vessel;
(b) updating the name or address of an owner;
(c) appointing an authorized representative;
(d) updating the name or address of an authorized representative; and
(e) transmitting to a surviving joint owner in case of death of another owner.

PART 5
Amendments to these Regulations and Coming into Force

Amendments to these Regulations

6 The headings before section 21 and sections 21 to 30 of the Regulations are replaced by the following:

Coming into Force

April 1, 2023

21 Sections 17 to 20 come into force on April 1, 2023.

Transitional Provisions

Pending application for service or request

7 (1) An application or request for a service sent before the day on which these Regulations come into force is subject to the fees that were in force on that day.

Sending date

(2) For the purpose of subsection (1), the application or request is considered to be sent on the day on which it is delivered or, if it is sent by mail, the day on which it is mailed, with the date of the postmark being evidence of that day.

Repeal

8 The Vessels Registry Fees Tariff ^{footnote 10} is repealed.

Coming into Force

9 These Regulations come into force on the day on which they are published in the Canada Gazette, Part II.

Terms of use and Privacy notice

Terms of use

It is your responsibility to ensure that the comments you provide do not:

contain personal information
contain protected or classified information of the Government of Canada
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encourage or incite any criminal activity
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otherwise violate this notice

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Footnotes

Footnote a

S.C. 2019, c. 1, s. 141

Return to footnote a referrer

Footnote b

S.C. 2001, c. 26

Return to footnote b referrer

Footnote 1

The analytical time frame is the 10-year period from December 2023 to November 2033. Each period consists of 12 months, from December to November. The first period is from December 2023 to November 2024 and the last period is from December 2032 to November 2033. The proposed Regulations are expected to be registered in December 2023.

Return to footnote 1 referrer

Footnote 2

Vessel transcripts are used by TC clients for a variety of purposes including verifying vessel registration information.

Return to footnote 2 referrer

Footnote 3

In a bare-boat charter, an owner leases their commercial vessel to someone else. The charterer (the person leasing the vessel) is responsible for providing a crew and the provisions. A bare-boat charter agreement gives the charterer complete possession and control of the vessel for a limited time.

Return to footnote 3 referrer

Footnote 4

During the Canadian federal election period in 2021, TC received comments “passively,” as per the caretaker convention.

Return to footnote 4 referrer

Footnote 5

The analytical time frame is 10-year period from December 2023 to November 2033. Each period consists of 12 months from December to November. The first period is from December 2023 to November 2024 and the last period is from December 2032 to November 2033.

Return to footnote 5 referrer

Footnote 6

A small business is a company with less than 100 employees or a company that has $5 million or less in annual revenue.

Return to footnote 6 referrer

Footnote 7

Canadian Industry Statistics from Innovation, Science and Economic Development Canada

Return to footnote 7 referrer

Footnote 8

Small business costs were calculated by taking 99% of the total net incremental costs of $7.46 million on vessel owners.

Return to footnote 8 referrer

Footnote 9

SOR/2021-59

Return to footnote 9 referrer

Footnote 10

SOR/2002-172

Return to footnote 10 referrer

Footnote 11

Historical data show, for each service type, that the number of annual transactions has remained stable over the years. For this analysis, it is assumed that the fee changes would not affect the transaction volumes over the analytical time frame.

Return to footnote 11 referrer

Canada Gazette, Part I, Volume 157, Number 14: Regulations Amending the Marine Safety Fees Regulations (Vessel Registry Fees)

REGULATORY IMPACT ANALYSIS STATEMENT

Executive summary

Issues

Background

Marine Safety Fees Regulations

Fee modernization

Service Fees Act

Low-materiality Fees Regulations

Objective

Description

Proposed amendments

Table a2 note(s)

Annual adjustment to fees

Directive on Charging and Special Financial Authorities

Regulatory development

Consultation

Consultation methods

Feedback received and TC responses

Overall, feedback received focused on

Table a3 note(s)

﻿Coordination with other government departments

Modern treaty obligations and Indigenous engagement and consultation

Instrument choice

Regulatory analysis

Analytical framework

Affected stakeholders

Baseline and regulatory scenarios

Costs and benefits

Costs

Cost to Canadian vessel owners

Cost to Canadians (represented by Transport Canada)

Benefits

Benefits to Canadian vessel owners

Benefit to Canadians (represented by Transport Canada)

Cost-benefit statement

Qualitative benefits

Improving client experience

Distributional analysis

Impacts on LVR service users versus SVR services users

Impacts on vessel registry service users by regions

Table b5 note(s)

Sensitivity analysis

Analytical time frame

Discount rate

Table b7 note(s)

Table b8 note(s)

Small business lens

Small business lens summary

One-for-one rule

Regulatory cooperation and alignment

Strategic environmental assessment

Gender-based analysis plus

Implementation, compliance and enforcement, and service standards

Implementation

Implementation of the proposed Regulations

Compliance and enforcement

Service standards

Table b10 note(s)

Table b11 note(s)

Contact

PROPOSED REGULATORY TEXT

Regulations Amending the Marine Safety Fees Regulations (Vessel Registry Fees)

Amendments

PART 1 Marine Cargo Inspection Fees

Definitions

PART 2 Environmental Protection Inspection Fees

PART 3 Foreign Vessel Inspection Fees

PART 4 Vessel Registry Fees

PART 5 Amendments to these Regulations and Coming into Force

Amendments to these Regulations

Coming into Force

Transitional Provisions

Repeal

Coming into Force

Terms of use and Privacy notice

Terms of use

Privacy notice

Coordination with other government departments

PART 1
Marine Cargo Inspection Fees

PART 2
Environmental Protection Inspection Fees

PART 3
Foreign Vessel Inspection Fees

PART 4
Vessel Registry Fees

PART 5
Amendments to these Regulations and Coming into Force