FEE SCHEDULE

The Minister of Fisheries and Oceans, pursuant to section 47 of the Oceans Act, hereby fixes the fees to be paid for marine navigation services provided by the Canadian Coast Guard, in accordance with the annexed fee schedule.

The annexed fee schedule replaces the Fee Schedule – Fees to be Paid for Marine Navigation Services provided by the Canadian Coast Guard, which came into effect July 1, 1997.

David Anderson, P.C., M.P.
Minister of Fisheries and Oceans

FEE SCHEDULE

FEES TO BE PAID FOR MARINE NAVIGATION SERVICES
PROVIDED BY THE CANADIAN COAST GUARD

INTERPRETATION

1. The definitions in this section apply in this fee schedule with respect to the calculation, collection and payment of marine navigation service fees.

"aggregates" means gravel, sands and whole or crushed stone, suitable for construction.(agrégats)

“boom boat” means a small ship specifically designed to push logs within a booming yard. (remorqueur de billes)

“booming yard” means an area of water that is used for the purpose of storing and handling of logs. (aire de stockage)

"bulk carriers" means ships constructed generally with single-deck, topside tanks and hopper side tanks in cargo spaces and intended primarily to carry dry cargo in bulk. Bulk carriers include self-unloading bulkers, but exclude barges and tug-barge combinations of all types. (transporteurs de vrac)

"Canadian ship" means a ship that is registered or licensed in Canada under the Canada Shipping Act. (navire canadien)

"collecting agent" means a person who is designated by the Minister to collect fees fixed by this fee schedule. (agent de perception)

"container ship" means a ship designed exclusively for the carriage of containers in holds and on deck.(porte-conteneurs)

"cruise ship" means a ship that is used exclusively for the carriage of passengers that offers overnight accommodations.(paquebot de croisière)

"ferry” means a ship that has facilities primarily for carrying passengers, roll on/roll off cargo, vehicles and/or railcars, and is operated on a scheduled run between two or more points over the most direct water route. (traversier)

"fishing vessel" means a vessel, boat or craft that is employed in catching fish, processing fish or transporting fish back to shore. (bateau de pêche)

“fleet rental boat” means any ship less than 15 gross tons and less than 10 metres in length that is rented, leased or chartered out for hourly, daily or extended periods for hire, reward, remuneration or any object of profit. (bateau de louage)

“government ship” means any vessel, boat or craft that is owned or operated by the government of any country other than Canada, a province, state, territory or municipality of a country for which no fee, tariff or freight rate is charged for the vessel’s, boat’s or craft’s services, or any vessel, boat or craft owned or operated by the government of Canada.(navire d’État)

"gross tonnage" means

1. in the case of a ship that is subject to the 1969 Convention, the gross tonnage that is indicated on the International Tonnage Certificate (1969) for that ship;
   or
2. in the case of a ship that is not subject to the 1969 Convention, the gross tonnage or registered tonnage that is indicated on the certificate of registry for that ship. (jauge brute)

"International Tonnage Certificate (1969)" has the same meaning as in section 2 of the Tonnage Regulations (SOR/94-643). (certificat international de jauge (1969))

"Laurentian and Central Region" means Canadian waters in or adjacent to the provinces of Quebec, Ontario and Manitoba. (région Laurentienne et du Centre)

"marine navigation services" means

1. the buoys, beacons, lighthouses, LORAN C, racons or other devices, structures and facilities provided by the Minister for the purpose of assisting the navigation of ships; and
2. vessel traffic services and information provided by Canadian Coast Guard marine communications and traffic services centres. (services à la navigation maritime)

"Maritimes Region" means Canadian waters in or adjacent to the provinces of Nova Scotia, Prince Edward Island (PEI) and New Brunswick.(région des Maritimes)

"Minister" means the Minister of Fisheries and Oceans. (ministre)

"Newfoundland Region" means Canadian waters in or adjacent to the province of Newfoundland.(région de Terre-Neuve)

"1969 Convention" means the International Convention on Tonnage Measurement of Ships, 1969. (Convention de 1969)

“pleasure craft” means a vessel, boat or craft that is used exclusively for pleasure and does not carry passengers or goods for hire, reward, remuneration or any object of profit. (embarcation de plaisance)

"precision navigation system" means the electronic systems used by mariners to determine their geographic position and includes Differential Global Positioning Systems and Electronic Chart Display and Information Systems. (système de navigation de précision)

"ship" means a vessel, boat or craft, other than a fishing vessel, government ship, or pleasure craft. (navire)

“tonne” means a metric ton.

"transshipped cargo" means cargo that is being carried by a second or subsequent ship without intermediate processing in order to reach a final destination. (cargaison transbordée)

"tug" means a ship used for towing or pushing purposes or to assist other ships. (remorqueur)

"Western Region" means Canadian waters in or adjacent to the provinces of British Columbia, Alberta and Saskatchewan. (région de l'Ouest)

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APPLICATION

2. (1) Subject to subsections (2) to (9), this fee schedule applies to all ships that are operating in Canadian waters.

(2) Sections 6 and 7 do not apply at Canadian ports situated north of 60° North latitude.

(3) This fee schedule does not apply to Canadian ships or ships operating pursuant to section 10 that are operating exclusively in one or more of the following:

1. in Canadian waters north of 60° North latitude;
2. between any locations prescribed pursuant to s.110.7(1) of the Income Tax Act* and s.7303.1 of the Income Tax Regulations** and which are listed in Revenue Canada Form T4039 Northern Residents Deductions - Places in Prescribed Zones, as amended from time to time; or
3. between any locations in (a) and (b).

(4) This fee schedule does not apply to ships that are travelling non stop through Canadian waters en route to, or from, a port in the United States.

(5) This fee schedule does not apply to a ship that is operated by, or on the behalf of, the government of the province of Newfoundland.

(6) Notwithstanding section 10, this fee schedule does not apply to a barge that is operated in the Western Region.

(7) This fee schedule does not apply to a boom boat that is operated exclusively within a private booming yard in the Western Region.

(8) Subject to subsection 4(3), when a non-Canadian ship is subject to fees under two different provisions of this fee schedule in the same calendar month, only the higher of the total fees payable under each provision applies, or where the amount of the two fees is identical, only the second fee incurred will apply.

(9) For purposes of determining the applicability of subsection (8) with respect to a fee payable pursuant to section 10, calendar month is the month in which the temporary entry permit becomes effective.

3. In calculating the fee to be paid by a ship, the gross tonnage of that ship does not include any portion of that ship that is held as segregated water ballast.

PART I

FEES IN THE WESTERN REGION

Non-Canadian Ships

4. (1) Subject to subsections (2) and (3) and section 10, the fee payable, for marine navigation services, by a non Canadian ship with a gross tonnage of 1,000 tons or more is, for each entry into Canadian waters of the Western Region, $640 plus the gross tonnage of that ship multiplied by $0.028.

(2) The fee set out in subsection (1) is payable to a maximum of 12 times per 12-month period beginning October 1, 1998, and per 12-month period thereafter.

(3) Where a ship's gross tonnage is less than 1,000 tons, the ship may elect to pay the fee prescribed by subsection (1) or the fee prescribed by subsection 5(2).

Canadian Ships

5. (1) The fee payable per 12-month period beginning October 1, 1998, and for each 12-month period thereafter, for marine navigation services, by a Canadian ship with a gross tonnage of 1,000 tons or more that is operating in Canadian waters of the Western Region is $5,900 plus the gross tonnage of that ship multiplied by $0.45.

(2) Subject to subsection (3), the fee payable per 12-month period beginning October 1, 1998, and for each 12-month period thereafter, for marine navigation services, by a Canadian ship with a gross tonnage of 15 tons or more but less than 1,000 tons that is operating in Canadian waters of the Western region is $300 plus the gross tonnage of that ship multiplied by $9.50.

(3) The fee payable per 12-month period beginning October 1, 1998, and for each 12-month period thereafter, for marine navigation services, by a tug that is a Canadian ship with a gross tonnage of 5 tons or more but less than 1,000 tons and that is operating in Canadian waters of the Western region is $300 plus the gross tonnage of that tug multiplied by $9.50.

(4) The fee payable per 12-month period beginning October 1, 1998, and for each 12-month period thereafter, for marine navigation services, by a fleet rental boat that is operating in Canadian waters of the Western Region is $25.

(5) The fee payable per 12-month period beginning October 1, 1998, and for each 12-month period thereafter, for marine navigation services, by a Canadian ship with a gross tonnage of less than 15 tons that is operating in Canadian waters of the Western Region, other than a ship mentioned in subsection (3) or (4), is $200.

(6) Where a fee was paid pursuant to section 5 of the Fee Schedule – Fees to be Paid for Marine Navigation Services provided by the Canadian Coast Guard, which came into effect July 1, 1997, the fee payable pursuant to subsections (1), (2), (3), (4) and (5) on October 1, 1998, will be the pro rata fee for the period April 1, 1999, to September 30, 1999.

PART II

FEES IN THE MARITIMES REGION, NEWFOUNDLAND REGION AND THE LAURENTIAN AND CENTRAL REGION

Non-Canadian Ships

6. (1) Subject to subsections (2) and (3) and section 10, the fee payable, for marine navigation services, by a non Canadian ship whose principal purpose is the transportation of goods or merchandise, that is loading or unloading cargo at a Canadian port is, for cargo that is loaded, the amount obtained by multiplying the weight in tonnes of the cargo that is loaded, to a maximum of 50,000 tonnes, and for cargo that is unloaded, the amount obtained by multiplying the weight in tonnes of the cargo that is unloaded, to a maximum of 50,000 tonnes, by

1. $0.152, in the Laurentian and Central Region;
2. $0.089, in the Bay of Fundy ports in the Maritimes Region;
3. $0.216 in the Northumberland Strait and PEI ports in the Maritimes Region;
4. $0.107 in all other Nova Scotia ports in the Maritimes Region;
5. $0.160 in the Chaleur Bay ports in the Maritimes Region;
6. $0.216 in the Miramichi River ports in the Maritimes Region; and
7. $0.152 in the Newfoundland Region.

(2) In calculating the fee prescribed by subsection (1), the weight of cargo that is loaded or unloaded shall not include the weight of transshipped cargo that has been previously carried by a ship for which a fee has been paid.

(3) The fee calculated in subsection (1) shall not exceed $0.05 per tonne for aggregates and $0.15 per tonne for gypsum.

7. Subject to section 10, the fee payable, for marine navigation services, by a non Canadian cruise ship that is operating in Canadian waters in the Maritimes Region, Newfoundland Region or Laurentian and Central Region is the following amount for each arrival at a Canadian port, to a maximum of three arrivals in any 30 day period:

1. $300 for non-Canadian cruise ships with a gross tonnage of less than or equal to 150 tons;
2. $500 for non-Canadian cruise ships with a gross tonnage greater than 150 tons but less than or equal to 22,500 tons; or
3. $1500 for non-Canadian cruise ships with a gross tonnage greater than 22,500 tons.

Canadian Ships

8. (1) Subject to subsections (2) to (7), the quarterly fee payable, for marine navigation services, by a Canadian ship that is operating in Canadian waters in the Maritimes Region, Newfoundland Region or Laurentian and Central Region is the amount obtained by multiplying the gross tonnage of that ship, to a maximum of 50,000 gross tons, by $1.14.

(2) A Canadian ship which operates under a Transport Canada marine safety inspection certificate which restricts its annual operating season to six months or less and for which a fee is payable under subsection(1) will only be subject to that fee for a maximum of two quarters in any calendar year.

(3) Subject to subsection (4), the fee payable for marine navigation services, by a Canadian ship that is a bulk carrier or container ship that is operating in Canadian waters other than the waters of the Western Region is the amount obtained by multiplying 1/100 of the distance travelled in kilometres, rounded to the next highest whole number, by the tonnes carried by $0.0070.

(4) All ships subject to fees under subsection (3) are required to submit documentation as to vessel type to the Minister within the first quarter in which the fee is payable.

(5) Notwithstanding the calculation of the fee in subsection (3), the fee payable by a bulk carrier or container ship shall not exceed $0.05 per tonne for aggregates, $0.15 per tonne for gypsum and $0.16 per tonne for all other commodities.

(6) In calculating the fee prescribed by subsection (3), the weight of cargo that is carried shall not include the weight of transshipped cargo that has been previously carried by a ship for which a fee has been paid.

(7) The quarterly fee payable for marine navigation services, by a Canadian ship that is a ferry that is operating in Canadian waters in the Maritimes Region, Newfoundland Region, or Laurentian and Central Region is the amount obtained by multiplying the gross tonnage of the ship, to a maximum of 50,000 gross tons, by $1.65.

PART III

GENERAL

9. (1) Subject to subsection (2), the fee payable, for marine navigation services, by a non Canadian ship whose principal purpose is not the transportation of goods or merchandise, that is operating in Canadian waters of the Newfoundland Region, Maritimes Region or the Laurentian and Central Region, that is not subject to any other fees fixed by this fee schedule, is the amount obtained by multiplying the gross tonnage of that ship, to a maximum of 50,000 gross tons, by $0.38.

(2) The fee set out in subsection (1) shall be paid a maximum of once per calendar month.

10. The fee payable, for marine navigation services, by a non Canadian ship or a non-duty paid Canadian ship that is operating in Canadian waters pursuant to a temporary entry permit issued under the Coasting Trade Act is the amount obtained by multiplying the gross tonnage of that ship, to a maximum of 50,000 gross tons, by the number of 30-day periods or portion thereof during which the permit is in effect by $0.38.

MINIMUM FEE

11. Notwithstanding the provisions of this fee schedule, the minimum amount payable for any fee due under sections 6 to 10 shall be $25.00 per ship.

FEE REDUCTION

12. Where a ship is operating with a precision navigation system on board that is in accordance with the standards provided in Annex I, a reduction of five per cent shall be applied to the fee payable.

FEE COLLECTION

13. A fee prescribed by this fee schedule shall be paid by the ship upon issuance of an invoice by the Minister or a person authorized by the Minister to a ship or the authorized agent of a ship.

14. Fees paid pursuant to subsection 8(3) shall be submitted on a quarterly basis and calculated on all tonne-kilometres logged in the preceding quarter. Payment shall be made no later than 30 days after the end of the quarter and shall be accompanied by information supporting the payment made including, but not limited to, the tonne-kilometres for aggregates, gypsum and other commodities.

15. Interest is payable on an overdue fee commencing 30 days after issuance of the invoice and is calculated pursuant to the Interest and Administrative Charges Regulations (SOR/96-188).

COMING INTO FORCE

16. This fee schedule comes into force on October 1, 1998.

ANNEX I

STANDARD FOR ECDIS AND DGPS

BACKGROUND

Performance Standards for Electronic Chart Display and Information Systems (ECDIS) were formally adopted by the International Maritime Organization (IMO) in November 1995 (IMO Resolution A.817 (19), adopted November 1995). The IMO Performance Standards (IMO PS) permit National Maritime Safety Administrations to consider ECDIS as the legal equivalent to the charts required by regulation V/20 of the 1974 Safety of Life At Sea (SOLAS) Convention. IMO has specifically requested that member governments have their National Hydrographic Offices produce electronic navigational charts (ENCs) and the associated updating service as soon as possible, and to ensure that manufacturers conform to the performance standards when designing and producing ECDIS.

At the request of IMO, the International Electrotechnical Commission (IEC) is working to identify and describe the necessary performance tests and checks for an IMO-compliant ECDIS. Upon completion of the IEC ECDIS Performance Standard (IEC Publication 1174) in 1997, the IEC Performance Standard will become the basis for type approval specifications related to operational methods of testing and required test results for an IMO-compliant ECDIS.

MARINE NAVIGATION SERVICES FEES

On May 29, 1996, a Marine Navigation Services Fees Bulletin (No 1/96) was issued by the Department of Fisheries and Oceans in Canada regarding a reduction in fees for a ship operating with a “precise navigation system” on-board. As defined in the Bulletin, a “precise navigation system” (PNS) means electronic systems used by the mariner to determine their geographic position and includes an Electronic Chart Display and Information System. It is further specified that to qualify for the reduction, both a Differential Global Positioning System (DGPS) and ECDIS must be installed.

Since Transport Canada can not issue carriage requirements or grant type approval for DGPS or ECDIS until such time as all the standards, including the IEC test procedures, are in place, the Canadian Coast Guard has decided to issue an “interim standard” for ECDIS and DGPS. These interim standards will enable vessels and shipping companies to qualify for a 5% reduction in their Marine Services Fees prior to the establishment of a formal type approval process. It is expected that shipowners will upgrade or replace their systems meeting these interim standards with those of a type-approved by Transport Canada as being IMO-compliant.

With this 5% reduction, the Coast Guard is signaling its recognition of the significant safety and efficiency benefits of precision navigation systems and in the case of ECDIS, its real time position and display capability, as well as anti-collision capability if used with radar/ARPA overlay. It is the philosophy of the Canadian Coast Guard that an investment in real-time, high accuracy position fixing and display equipment is becoming a necessity in the modern world, not only for the safety of lives and property, but also with regard to the safety of the marine environment.

As previously mentioned, it is recognized by the Coast Guard that no type approved ECDIS or type-approval process exists at the present time, however, by virtue of the 5% reduction and this standard, it recognizes the significant investment in money and training by shipping companies both domestically and internationally in this type of equipment.

As a result of the increasing use of real-time, high accuracy position display and navigation systems-such as that provided by the integration of ECDIS with DGPS and other navigation sensors, reliance on traditional aids to navigation may be somewhat reduced. Therefore, the Coast Guard has commenced a study which examines the ramifications of these technologies on the current mix of floating and fixed aids to navigation.

PROPOSED INTERIM STANDARD

The proposed interim standard would apply to Marine Navigation Services fees.

DEFINITIONS:

For the purposes of this “Interim Standard”:

1. ECDIS: Electronic Chart Display and Information System: Means a navigation information system which displays selected information from a System Electronic Navigational Chart (SENC) with positional information from navigation sensors to assist the mariner in route planning and monitoring, and if required, displays additional navigation related information.
2. ENC: Electronic Navigational Chart: means a database, standardized as to content, structure and format, issued for use with an ECDIS on the authority of government Hydrographic offices. The ENC contains all the chart information necessary for safe navigation and may contain other information in addition to that contained in the paper chart which may be considered necessary for safe navigation.
3. SENC: System Electronic Navigational Chart: means a database resulting from the transformation of the ENC by an ECDIS for appropriate use, updates to the ENC by appropriate means and other data added by the mariner. It is this data base that is actually accessed by an ECDIS for the display generation and other navigational functions, and is the equivalent of an up-to-date paper chart. The SENC may also contain information from other sources.
4. S-57: Special Publication No.57: International Hydrographic Organization Transfer Standard for Digital Hydrographic Data.
5. S-52: Special Publication No. 52: Provisional Specifications for Chart Content and Display of ECDIS.
6. GPS: Global Positioning System: is a constellation of orbiting satellites operated by the United States Department of Defence to provide navigation, position location and precision timing services to users worldwide
7. DGPS: Differential Global Positioning System: means a terrestrial long range navigation system using transmitted corrections to satellite signals originating from the US DOD Global Positioning System (GPS).

REQUIREMENTS

This section describes the functional requirements of a “precise navigation system” that will, if carried by commercial ships, qualify them for the 5% Marine Services Fee reduction. The ECDIS criteria are a sub-set of the IMO Performance Standards (IMO PS) for ECDIS adopted by IMO (Resolution A.817(19) on 15 December, 1995. They are not intended to exceed these requirements.

A) ECDIS

1) An ECDIS should be capable of displaying all chart information necessary for the safe and efficient navigation of the vessel for the intended voyage originated by, and distributed on the authority of, government authorized Hydrographic offices. (IMO PS, s. 1.4)

Official Electronic Navigational Charts (ENCs) issued by the Canadian Hydrographic Service (CHS) are vector-based digital data in one of two formats:

1. NTX
2. IHO S-57

2) An ECDIS should reduce navigational workload and should enable the mariner to execute in a convenient and timely manner all route planning, route monitoring and positioning currently performed on paper charts. It should be capable of continuously plotting the ship’s position. (IMO PS, s. 1.6)

For Canadian waters, the positioning system used shall be DGPS
(see section B)

3) An ECDIS should provide appropriate alarms or indications with respect to the information displayed or malfunction of the equipment (IMO PS, s. 1.8).

This should include the ability of the mariner to select safety depths and contours; proximity alarms; off-scale or over-scale chart display; off-track indications or alarms; or, loss of primary positioning system.

4) An ECDIS should be connected to systems providing:

1. Continuous position fixing (DGPS, as stated in 2 above)
2. Continuous heading display: ship’s gyrocompass
3. Continuous speed information: speed log or some similar system.
4. Continuous depth information: Echo Sounder

4.1) ECDIS may be integrated with the following equipment: 

1. RADAR: radar image and/or ARPA targets (IMO PS, s. 6.3)

5) Adequate backup arrangements for ECDIS should be available for the duration of the intended voyage in case of ECDIS failure (IMO PS, s. 14 and ANNEX 8: Draft amendment to Resolution A.817 (19)-APPENDIX 6 “Back-up Arrangements)).

6) Mariners using ECDIS should be provided with adequate training in the shipboard operation of ECDIS, including its capabilities and limitations.

7) An ECDIS should comply with Chapter II-1, 1974 SOLAS convention regarding the powers supply, both regards emergency power and changing power supplies. (IMO PS, s. 15)

B) DGPS Receiver

A marine DGPS navigation aid is a device (or devices) capable of receiving and processing ranging signals from the US DOD GPS Standard Positioning Service (SPS) in accordance with the International Standard IEC 1108-1: Global Navigation Satellite Systems (GNSS)- Part 1: Global Positioning System (GPS)- Receiver Equipment- Performance Standards, Methods of Testing and Required Test Results (Draft) and simultaneously receive and process corrections to the GPS ranging signals fed to it in accordance with the standards of Recommended ITU-R M.823 and the Radio Technical Commission for Maritime Services (RTCM) Special Committee 104 recommended broadcast standard format (current version), such that the output, either for display or for input to other navigational devices, is real-time, continuous precise position for marine navigation or positioning purposes.

It should be noted that the carriage of this equipment does not exempt vessels from the requirements of the Charts and Nautical Publications Regulations, 1995, or any other regulations made pursuant to the Canada Shipping Act or the Arctic Waters Pollution Prevention Act.

APPLICATION PROCEDURE

It is proposed that the following two methods be used for the Application Procedure for the 5% Precise Navigation Systems (PNS) reduction:

1) Certify/Authorize manufacturers:

• Manufacturers submit the specifications on their equipment to the CCG Marine Services Fee office.
• A committee composed of Coast Guard, Canadian Hydrographic Service and Transport Canada members examine the equipment specifications with respect to the requirements of the Interim Standard, issuing a Letter of Compliance (if appropriate).
• Any ship carrying this Letter of Compliance may submit it, in lieu of the following checklist, and thereby gain the 5% reduction.

2) Checklist for agents:

• CCG supply a checklist of items required for the 5% PNS reduction.
• Ship certifies that the items are present in their system, then submits the list to their agent with the name and address of the manufacturer of their specific system.
• Agent applies 5% reduction, sending the list to CCG with the remainder of his marine navigation services fees.
• CCG/CHS/TC committee must check this list against manufacturers specifications and issue a Letter of Compliance to the manufacturer, if appropriate.
• If it does not actually meet Interim Standard, then 5% reduction must be drawn back from vessel.

CONCLUSION

It is the intent of this paper to establish an INTERIM STANDARD that vessels may comply with to enable them to qualify for the 5% PNS reduction in the Marine Services Fee. This INTERIM STANDARD in no way obviates the formal approval process for regulatory purposes. It also does not relieve the shipowner of complying with the appropriate Charts and Nautical Publications Regulations, 1995, or the Navigating Appliances and Equipment Regulations.

This paper seeks discussion and input as to the appropriateness of the application procedure and the Interim Standard itself.

CHECKLIST OF REQUIRED FEATURES

Feature required for 5% reduction	Complies
Updated electronic charts on board for entire voyage
Vector data (NTX or IHO S-57 format) charts
Updating system for electronic charts
Variable display modes (i.e.: Ships Head up, North up etc.)
route planning (waypoints use, etc.)
Route monitoring
Plot ship’s position
DGPS receiver integration
Equipment malfunction alarm
Safety depth and/or contour
Proximity alarm
Off or Over scale chart alarm
Off track indication
Loss of primary positioning information alarm
Gyrocompass integration
Echo sounder integration
Radar image integration
speed log integration
Back up arrangements (please specify)
Training of bridge personnel in use of ECDIS systems.
Power supply (both emergency, and changing supplies: as per Ch II-1, 1974 SOLAS convention)

* R.S.C 1985, c.1 (5th Supp.), as amended.
** C.R.C., c. 945, as amended.