Canadian Coast Guard Marine
Services Fees Information Bulletin

Number Twenty
December, 2004

This bulletin is provided to inform the greater marine community on developments affecting the Canadian Coast Guard's Marine Services Fees (MSF) initiative. It is our intention that the bulletin will be issued as progress and developments warrant. Additions (or deletions) to the mailing list are invited.

The Coast Guard (CCG) is proposing to amend the Fee Schedule – Fees to be Paid for Marine Navigation Services provided by the Canadian Coast Guard with respect to the application of the tonne-kilometre fee structure. As a result of discussions with commercial shipping clients, CCG has determined that the present restriction of the tonne-kilometre rate to Canadian vessels provides an unintended competitive advantage to domestic shipping in the Great Lakes. This amendment is intended to resolve the current disparity and will bring the present regulations in line with the Coast Guard’s intent and policy of a fair and equitable fee. The proposed changes are highlighted and are as follows:

PART II

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

Non-Canadian Ships

6. (1) Subject to subsections (2), (3), (4) 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

(a) $0.152, in the Laurentian and Central Region;

(b) $0.089, in the Bay of Fundy ports in the Maritimes Region;

(c) $0.216 in the Northumberland Strait and PEI ports in the Maritimes Region;

(d) $0.107 in all other Nova Scotia ports in the Maritimes Region;

(e) $0.160 in the Bay of Chaleur ports in the Maritimes Region;

(f) $0.216 in the Miramichi River ports in the Maritimes Region; and

(g) $0.152 in the Newfoundland Region.

6. (4) Subject to subsections (2) and (3) and subsections 8(4), (5) and (6), the fee payable, for marine navigation services, by a non Canadian ship that is a bulk carrier or container ship that is operating between U.S. and Canadian ports in the Great Lakes is the amount obtained by the application of the formula prescribed in subsection 8(3).

Canadian Ships

8. (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; otherwise, the fees payable by the ship will be those prescribed in subsection 6(1).

(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 and $0.15 per tonne for gypsum to a maximum of 50,000 tonnes and $0.16 per tonne for all other commodities.

The proposed container ship definition will continue to exclude vessels classified as “RoRo Passenger/ Cargo Ferry”, “Lo-Lo” and “general cargo” as well as non-Canadian ships operating outside the Great Lakes.

Comments on this proposal may be submitted to David Sitland, at the address below on or before January 28, 2004.

The Marine Services Fees Information Sheet provides interpretations of fee schedules imposed under the Oceans Act. These interpretations are not binding and, where a discrepancy between the two documents arises, the fee schedule will always take precedence.

For more information, contact:

David Sitland, Cost Recovery and Revenue 1-613-993-6943

Phone: 1-800-563-6295

Fax: (613)-998-0460