Law:Coasting Trade Act

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S.c. 1992, c. 31

Assented to 1992-06-23

An Act respecting the use of foreign ships and non-duty paid ships in the coasting trade

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:


Contents

Short Title

Short title

1. This Act may be cited as the Coasting Trade Act.


Interpretation

Definitions

2. (1) In this Act,

“Agency”

« Office »

“Agency” means the Canadian Transportation Agency;

“Canadian ship”

« navire canadien »

“Canadian ship” means a ship registered or listed under Part 2 of the Canada Shipping Act, 2001 and in respect of which all duties and taxes imposed under the Customs Tariff and the Excise Tax Act have been paid;

“Canadian waters”

« eaux canadiennes »

“Canadian waters” means the inland waters within the meaning of section 2 of the Customs Act, the internal waters of Canada and the territorial sea of Canada;

“coasting trade”

« cabotage »

“coasting trade” means

(a) the carriage of goods by ship, or by ship and any other mode of transport, from one place in Canada or above the continental shelf of Canada to any other place in Canada or above the continental shelf of Canada, either directly or by way of a place outside Canada, but, with respect to waters above the continental shelf of Canada, includes the carriage of goods only in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada,

(b) subject to paragraph (c), the carriage of passengers by ship from any place in Canada situated on a lake or river to the same place, or to any other place in Canada, either directly or by way of a place outside Canada,

(c) the carriage of passengers by ship from any place situated on the St. Lawrence River northeast of the Saint Lambert lock or on the Fraser River west of the Mission Bridge

(i) to the same place, without any call at any port outside Canada, other than one or more technical or emergency calls, or

(ii) to any other place in Canada, other than as an in-transit call, either directly or by way of a place outside Canada,

(d) the carriage of passengers by ship from any place in Canada other than from a place to which paragraph (b) or (c) applies

(i) to the same place, without any call at any port outside Canada, other than one or more technical or emergency calls, or

(ii) to any other place in Canada, other than as an in-transit call, either directly or by way of a place outside Canada,

(e) the carriage of passengers by ship

(i) from any place in Canada to any place above the continental shelf of Canada,

(ii) from any place above the continental shelf of Canada to any place in Canada, or

class="Subp(iii) from any place above the continental shelf of Canada to the same place or to any other place above the continental shelf of Canada

where the carriage of the passengers is in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada, and

(f) the engaging, by ship, in any other marine activity of a commercial nature in Canadian waters and, with respect to waters above the continental shelf of Canada, in such other marine activities of a commercial nature that are in relation to the exploration, exploitation or transportation of the mineral or non-living natural resources of the continental shelf of Canada;

“continental shelf”(Repealed, 1996, c. 31, s. 66)

“enforcement officer”

« agent de l’autorité »

“enforcement officer” means a person designated pursuant to section 12 to be an enforcement officer for the purposes of this Act;

“foreign ship”

« navire étranger »

“foreign ship” means a ship other than a Canadian ship or a non-duty paid ship;

“in-transit call”

« escale de transit »

“in-transit call” means any call, other than an emergency or technical call, by a ship at any place where passengers go ashore temporarily but who re-board the vessel before the ship leaves that place or are transported by land to another location to re-board the same ship;

“licence”

« licence »

“licence” means a document, issued pursuant to this Act, authorizing a foreign ship or a non-duty paid ship to engage in the coasting trade while in Canadian waters or in waters above the continental shelf of Canada;

“master”

« capitaine »

“master”, in relation to a ship, has the same meaning as in section 2 of the Canada Shipping Act, 2001;

“non-duty paid ship”

« navire non dédouané »

“non-duty paid ship” means a ship registered in Canada in respect of which any duties and taxes under the Customs Tariff and the Excise Tax Act have not been paid;

“owner”

« propriétaire »

“owner”, in relation to a ship, includes the person having for the time being, either byaw or by contract, the rights of the owner of the ship as regards the possession and use thereof;

“resident in Canada”

« résident du Canada »

“resident in Canada” has the meaning given to that expression by section 250 of the Income Tax Act;

“ship”

« navire »

“ship” has the same meaning as “vessel” in section 2 of the Canada Shipping Act, 2001;

“technical call”

« escale technique »

“technical call” means any call, other than an emergency call or an in-transit call, that is for a purpose other than the embarking or disembarking of passengers.

Meaning of “place”

(2) For the purpose of the definition “coasting trade” in subsection (1), a place above the continental shelf of Canada includes any ship, offshore drilling unit, production platform, artificial island, subsea installation, pumping station, living accommodation, storage structure, loading or landing platform, dredge, floating crane, pipelaying or other barge or pipeline and any anchor, anchor cable or rig pad used in connection therewith.

Delegation

(3) Any power, duty or function of the Minister of Public Safety and Emergency Preparedness or the Minister of Transport under this Act may be exercised or performed by any person authorized by that Minister, as the case may be, to do so and, if so exercised or performed, shall be deemed to have been exercised by that Minister.

1992, c. 31, s. 2; 1996, c. 10, s. 211, c. 31, ss. 66, 108; 1998, c. 16, s. 30; 1999, c. 31, s. 228(F); 2001, c. 26, s. 289; 2005, c. 38, ss. 142, 145.

Previous Version

Regulation Of Foreign Ships And Non-duty Paid Ships

Prohibition

3. (1) Subject to subsections (2) to (5), no foreign ship or non-duty paid ship shall, except under and in accordance with a licence, engage in the coasting trade.

Application

(2) Subsection (1) does not apply in respect of any foreign ship or non-duty paid ship that is

(a) used as a fishing vessel, as defined by the Coastal Fisheries Protection Act, in any activity governed by that Act and that does not carry any goods or passengers other than goods or passengers incidental to any activity governed by that Act;

(b) engaged in any ocean research activity commissioned by the Department of Fisheries and Oceans;

(c) operated or sponsored by a foreign government that has sought and received the consent of the Minister of Foreign Affairs to conduct marine scientific research;

(d) engaged in salvage operations, except where such operations are performed in Canadian waters; or

(e) engaged, with the approval of a person designated as a pollution prevention officer under section 174 of the Canada Shipping Act, 2001 or authorized under paragraph 11(2)(d) of that Act to carry out inspections, in activities related to a marine pollution emergency, or to a risk of a marine pollution emergency.

Assistance in cases of distress

(3) Nothing in this section precludes a foreign ship or a non-duty paid ship from rendering assistance to persons, ships or aircraft in danger or distress in Canadian waters.

United States Wreckers Act

(4) Subsection (1) does not apply in respect of operations permitted by the United States Wreckers Act.

DEW Sites

(5) Subsection (1) does not apply to any ship that is owned by the Government of the United States and used for the sole purpose of transporting goods of Canadian or United States origin owned by the Government of the United States to supply Distant Early Warning Sites.

1992, c. 31, s. 3; 1995, c. 5, s. 25; 2001, c. 26, s. 290.

Previous VersionIssuance of licence: foreign ship

4. (1) Subject to section 7, on application therefor by a person resident in Canada acting on behalf of a foreign ship, the Minister of Public Safety and Emergency Preparedness shall issue a licence in respect of the foreign ship, where the Minister is satisfied that

(a) the Agency has determined that no Canadian ship or non-duty paid ship is suitable and available to provide the service or perform the activity described in the application;

(b) where the activity described in the application entails the carriage of passengers by ship, the Agency has determined that an identical or similar adequate marine service is not available from any person operating one or more Canadian ships;

(c) arrangements have been made for the payment of the duties and taxes under the Customs Tariff and the Excise Tax Act applicable to the foreign ship in relation to its temporary use in Canada;

(d) all certificates and documents relating to the foreign ship issued pursuant to shipping conventions to which Canada is a party are valid and in force; and

(e) the foreign ship meets all safety and pollution prevention requirements imposed by any law of Canada applicable to that foreign ship.

Other laws apply

(2) For greater certainty, the issuance of a licence pursuant to subsection (1) does not affect the application of any law of Canada that imposes safety or pollution prevention requirements in respect of ships.

1992, c. 31, s. 4; 2005, c. 38, ss. 142, 145.

Previous VersionIssuance of licence: non-duty paid ship

5. Subject to section 7, on application therefor by a person resident in Canada acting on behalf of a non-duty paid ship, the Minister of Public Safety and Emergency Preparedness shall issue a licence in respect of the non-duty paid ship, where the Minister is satisfied that

(a) the Agency has determined that no Canadian ship is suitable and available to provide the service or perform the activity described in the application;

(b) where the activity described in the application entails the carriage of passengers by ship, the Agency has determined that an identical or similar adequate marine service is not available from any person operating one or more Canadian ships; and

(c) arrangements have been made for the payment of the duties and taxes under the Customs Tariff and the Excise Tax Act applicable to the non-duty paid ship in relation to its temporary use in Canada.

1992, c. 31, s. 5; 2005, c. 38, ss. 142, 145.

Previous VersionTerms and conditions of licence

6. (1) The Minister of Public Safety and Emergency Preparedness may issue a licence subject to any terms and conditions that the Minister considers appropriate, including, without restricting the generality of the foregoing, terms and conditions respecting

(a) the service or activity that is to be performed by the foreign ship or non-duty paid ship to which the licence relates; and

(b) the place or places where the foreign ship or non-duty paid ship may perform that service or activity.

Effective period of licence

(2) Every licence shall set out the period of time for which it is valid, which period may not exceed

(a) in the case of a foreign ship, the earlier of twelve months and the expiration of any certificate or document referred to in paragraph 4(1)(d); or

(b) in the case of a non-duty paid ship, twelve months.

Suspension, cancellation or variation of licence

(3) The Minister of Public Safety and Emergency Preparedness may, by order, suspend or cancel a licence or vary the terms and conditions of a licence where

(a) the owner or master of the licensed ship is convicted of an offence under this or any other Act of Parliament relating to navigation or shipping; or

(b) there has been a contravention of or failure to comply with any term or condition to which the licence is subject.

1992, c. 31, s. 6; 2005, c. 38, ss. 142, 145.

Previous VersionMaximum number of licences

7. The Governor in Council may, by regulation, fix the maximum number of licences that may be issued pursuant to sections 4 and 5.


Function And Powers Of Agency

Function of Agency

8. (1) In relation to an application for a licence, the Agency shall make the determinations referred to in paragraphs 4(1)(a) and (b) and 5(a) and (b).

Regulations

(2) The Governor in Council may make regulations prescribing the criteria to be applied by the Agency for the making of the determinations referred to in subsection (1).

Information

9. In making a determination referred to in subsection 8(1), the Agency may request from the applicant for the licence to which the determination relates, and from the owner of any Canadian ship or non-duty ship to which the determination relates, such information and documentation as the Agency deems necessary.

Collection of information

10. In order to carry out its function under this Act the Agency may collect information and keep records concerning the characteristics and uses of Canadian ships and non-duty paid ships.


Unfair Practices

Unfair practices

11. (1) Where the Minister of Transport is of the opinion that a government of any country has engaged in unfair, discriminatory or restrictive practices with respect to the use of Canadian ships in commercial activities in waters of that country, the Minister of Transport and the Minister of Foreign Affairs shall seek elimination of those practices through consultations with the government of that country.

Idem

(2) Where the consultations referred to in subsection (1) fail to result in the elimination of the practices referred to in that subsection, the Governor in Council may, on the recommendation of the Minister of Transport and the Minister of Foreign Affairs, take such action as the Governor in Council considers appropriate.

1992, c. 31, s. 11; 1995, c. 5, s. 25.


Enforcement

Enforcement officers

12. (1) For the purposes of enforcing this Act, the Minister of Transport may designate any person or class of persons as enforcement officers and shall furnish every enforcement officer with a certificate of that designation.

Production of certificate of designation

(2) In carrying out the duties and functions of an enforcement officer under this Act, an enforcement officer shall, if so requested, produce the certificate of designation referred to in subsection (1) to the person appearing to be in charge of any ship in respect of which the enforcement officer is acting.


Offences

Offence

13. (1) Where a ship contravenes subsection 3(1), the ship is guilty of an offence and is liable on summary conviction to a fine not exceeding fifty thousand dollars.

Deemed separate offence

(2) Where an offence is committed by a ship under subsection (1) on more than one day or is continued by the ship for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.

Trial of offences

14. (1) Where a ship is charged with an offence under section 13, any court in Canada that would have had jurisdiction in respect of the offence if that offence had been committed within the limits of the court’s ordinary jurisdiction has jurisdiction to try the offence as if it had been committed in the court’s jurisdiction.

Service on ship and appearance at trial

(2) Where a ship is charged with an offence under section 13, the summons in relation thereto may be served by leaving it with the master or any officer of the ship or by posting the summons on a conspicuous part of the ship, and the ship may appear by counsel or agent but, if it does not appear, a court may, on proof of service of the summons, proceed ex parte to hold the trial.


Searches

Powers of enforcement officer

15. (1) Where an enforcement officer believes on reasonable grounds that a ship has contravened this Act, the enforcement officer may stop and board the ship and, with a warrant, search the ship and seize anything found in or on the ship that the enforcement officer believes on reasonable grounds will afford evidence with respect to any contravention of this Act.

Where warrant not necessary

(2) An enforcement officer may carry out the powers under subsection (1) without a warrant if by reason of exigent circumstances it would not be practicable to obtain a warrant.

Assistance

(3) While carrying out any of the powers under this section, an enforcement officer may

(a) require the owner, master or any other person who may have possession of the official log book of the ship, or any other document or paper that may provide evidence of the contravention, to produce, for inspection or for the purposes of obtaining copies thereof or extracts therefrom, the log book or other document or paper; and

(b) require the master or any other person found on board the ship to give all reasonable assistance in the power of the master or other person, as the case may be, to enable the enforcement officer to carry out the enforcement officer’s duties and functions under this Act.


Detention Of Ship

Detention of ships

16. (1) Where an enforcement officer believes on reasonable grounds that an offence under this Act has been committed by or in respect of a ship, the enforcement officer may make a detention order in respect of the ship.

Geographical application of section

(2) The power to make a detention order under this section may be exercised in Canadian waters and in waters above the continental shelf of Canada.

Order to be in writing

(3) A detention order made under subsection (1) shall be in writing and addressed to all persons who, at the place where the ship to which the order relates is or will be, are empowered to give a clearance in respect of the ship.

Notice of detention order to be served on master

(4) Where a detention order under this section is made in respect of a ship, notice thereof shall be served on the master of the ship

(a) by delivering a copy thereof personally to the master; or

(b) if service cannot reasonably be effected in the manner provided in paragraph (a),

(i) by leaving a copy thereof for the master on board the ship with the person who is, or appears to be, in command or charge of the ship, or

(ii) by leaving a copy thereof with the owner or agent of the owner of the ship residing in Canada or, where no such owner or agent is known or can be found, by fixing a copy thereof to a prominent part of the ship.

Ship under detention not to depart

(5) Where notice of a detention order in respect of a ship is served under subsection (4) and, during the term of the detention order, the master or owner of the ship gives an order for the ship to depart from Canadian waters or from waters above the continental shelf of Canada, the master or owner, as the case may be, is guilty of an offence and liable on summary conviction to a fine not exceeding fifty thousand dollars.

Duty of persons empowered to give clearance

(6) Subject to subsection (7), no person to whom a detention order made under subsection (1) is addressed shall, after notice of the order is received by that person, give clearance in respect of the ship to which the order relates.

When clearance shall be given

(7) A person to whom a detention order made under subsection (1) is addressed and who has received notice of the order shall give clearance in respect of the ship to which the order relates where

(a) security satisfactory to the Minister of Transport in the amount of fifty thousand dollars is given to Her Majesty in right of Canada;

(b) the ship has not been charged with an offence under this Act within thirty days after the making of the detention order; or

(c) the ship has been charged with an offence under this Act within the period referred to in paragraph (b) and

(i) security satisfactory to the Minister of Transport for payment of the maximum fine that might be imposed as a result of a conviction of a ship charged with that offence, or in such lesser amount as may be approved by the Minister of Transport, is given to Her Majesty in right of Canada, or

(ii) proceedings in respect of the alleged offence that gave rise to the making of the detention order are discontinued.

Sale of ship where no appearance and no security

(8) Where a ship has been charged with a offence under this Act within thirty days after the making of a detention order in respect thereof and, within thirty days after the day on which the ship was charged with the offence,

(a) no one has appeared on behalf of the ship to answer to the charge, and

(b) security referred to in paragraph (7)(c) has not been given,

the Minister of Transport may apply to a court for an order authorizing the Minister of Transport to sell the ship.

Sale of ship where appearance but no security

(9) Where a ship has been charged with an offence under this Act within thirty days after the making of a detention order in respect thereof and

(a) within thirty days after the day on which the ship was charged with the offence, someone has appeared on behalf of the ship to answer to the charge but security referred to in paragraph (7)(c) has not been given, and

(b) the ship is convicted and a fine is imposed but not paid forthwith,

the Minister of Transport may apply to a court for an order authorizing the Minister of Transport to sell the ship.

Notice

(10) Forthwith on making an application under subsection (8) or (9), the Minister of Transport shall, by registered mail, give notice of the application to

(a) the person responsible for maintaining any register in which the ship is registered, listed or recorded;

(b) the holder of any mortgage against the ship that is registered on the register referred to in paragraph (a); and

(c) the holder of any maritime lien against the ship to which the application relates, and the holder of any like interest, known to the Minister of Transport at the time of the making of the application.

Day notice deemed to be given

(11) A notice sent by registered mail under subsection (10) shall be deemed to have been given to the person to whom it was sent on the day on which an acknowledgement of receipt in respect thereof is received by the Minister of Transport.

Court may relieve Minister of giving notice

(12) Where the court seized of an application under subsection (8) or (9) is satisfied that it is appropriate to do so, the court may relieve the Minister of Transport of the obligation to give the notice referred to in subsection (10), or authorize the Minister of Transport to give the notice in such other manner as the court deems fit.

Claiming interest

(13) Where an application is made under subsection (8) or (9) in respect of a ship,

(a) any person referred to in paragraph (10)(b) or (c) may, within sixty days after the notice is given to that person, and

(b) any other person who claims an interest in the ship as mortgagee, or as the holder of a maritime lien or as the holder of any like interest, may, within sixty days after the application is made,

apply by notice in writing to the court seized of the application for an order referred to in subsection (14).

Order

(14) Where, on the hearing of an application made under subsection (13), it is made to appear to the satisfaction of the court

(a) that the applicant acquired the interest in respect of which the applicant is applying in good faith prior to the commission of the offence in respect of which the ship was detained, and

(b) that the applicant is innocent of any complicity or collusion in respect of theffence in respect of which the ship was detained,

the court shall grant to the applicant an order declaring the nature and extent of the applicant’s interest at the time of the commission of the offence.

Appeal

(15) Any person who makes an application under subsection (13), and the Minister of Transport, may appeal to the court of appeal from an order referred to in subsection (14) and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judgments of a court.

Applications under subsection (13) to be heard first

(16) A court shall not hear an application under subsection (8) or (9) until all applications under subsection (13) in relation thereto have been heard.

Court may authorize sale

(17) A court hearing an application under subsection (8) or (9) may authorize the Minister of Transport to sell the ship to which the application relates in such manner and subject to such terms and conditions as the court considers appropriate and, on application by the Minister of Transport, give directions to the Minister of Transport as to the rank of the interests of persons who have obtained an order referred to in subsection (14).

Payment of proceeds

(18) Where a ship is sold pursuant to this section, any surplus remaining from the proceeds of the sale after deducting

(a) the amount of

(i) the maximum fine that could have been imposed for the offence, where subsection (8) applies, or

(ii) the fine actually imposed, where subsection (9) applies, and

(b) the cost of the detention and the sale

shall, to the extent of the surplus, be paid in accordance with the interests of persons who have obtained an order referred to in subsection (14), and any surplus remaining thereafter shall be paid to the person registered as the owner of the ship or, in the absence of registration, to the person who owns the ship.

Clear title

(19) On selling a ship pursuant to this section, the Minister of Transport may, by bill of sale, give the purchaser a valid title to the ship free from any mortgage or other claim on the ship that is in existence at the time of the sale.

Registrability not implied

(20) Nothing in subsection (19) shall be construed as meaning that the ship may be registered in the name of the purchaser.

Not duty paid

(21) No ship sold pursuant to this section shall be deemed to have been duty paid under the Customs Tariff by reason only of that sale.

Definitions

(22) In this section,

“court”

« tribunal »

“court” means

(a) in the Province of Ontario, the Superior Court of Justice,

(b) in the Province of Quebec, the Superior Court of the Province,

(c) in the Provinces of Prince Edward Island and Newfoundland, the trial division of the Supreme Court of the Province,

(d) in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench for the Province,

(e) in the Provinces of Nova Scotia and British Columbia, the Supreme Court of therovince,

(f) the Supreme Court of Yukon, the Supreme Court of the Northwest Territories and the Nunavut Court of Justice, and

(g) the Federal Court;

“court of appeal”

« tribunal d’appel »

“court of appeal” means, in the province in which an order referred to in subsection (14) is made, the court of appeal for that province as defined in section 2 of the Criminal Code and includes the Federal Court of Appeal.

1992, c. 31, s. 16; 1996, c. 31, s. 108; 1998, c. 16, s. 31, c. 30, ss. 13(F), 15(E); 1999, c. 3, s. 21, c. 31, s. 43; 2002, c. 7, s. 132(E), c. 8, s. 183.

Previous Version

Other Offences

Obstruction

17. No person shall obstruct or hinder an enforcement officer in the carrying out of the enforcement officer’s duties and functions under this Act.

False statements

18. No person shall knowingly make a false or misleading statement, either orally or in writing, as the case may be,

(a) in an application for a licence;

(b) to the Agency pursuant to a request under section 9; or

(c) to an enforcement officer while the enforcement officer is engaged in carrying out that enforcement officer’s duties and functions under this Act.

Summary conviction offence and punishment

19. Every person who contravenes section 17 or 18 is guilty of an offence punishable on summary conviction and is liable to a fine of not more than fifteen thousand dollars or to imprisonment for a term not exceeding twelve months or to both.


General

Minister of Transport responsible

20. Except where otherwise provided for in this Act, the Minister of Transport is responsible for the administration of this Act.

Copies or extracts

21. (1) Subject to subsection (2), a copy or extract of any document or paper made or taken pursuant to subsection 15(3) by an enforcement officer and purporting to be certified under the enforcement officer’s signature as a true copy or extract is admissible in evidence in any prosecution for an offence under this Act without proof of the signature or official character of the person appearing to have signed the copy or extract and, in the absence of any evidence to the contrary, has the same probative force as the original document or paper would have if it had been proved in the ordinary way.

Notice

(2) No copy or extract referred to in subsection (1) shall be received in evidence in any proceedings unless the party intending to produce it has given to the party against whom it is intended to be produced notice of that intention at least seven days prior to the proceedings together with a duplicate of the copy or extract.


Consequential Amendments

22. to 28. (Amendments)


Transitional

29. (Repealed, 2001, c. 26, s. 291)

Previous Version30. (Repealed, 2001, c. 26, s. 291)

Previous Version

Coming Into Force

Coming into force

(2)�(Repealed, 2001, c. 26, s. 292)

1992, c. 31, s. 31; 2001, c. 26, s. 292.

Previous Version


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