Registration of non-pleasure craft (small commercial vessels) in the "Small Vessel Register" – New requirements under the Canada Shipping Act 2001 (CSA 2001) - TP 14658 E

To view or download alternate formats of this publication, visit "Transact", Transport Canada's Online Publications Storefront.

Table of Contents

• Background
• Transitional Period
• S.46 of the Canada Shipping Act 2001 states:

Background

Under the Canada Shipping Act 2001 (CSA 2001), expected to come into force in July 2007, all non-pleasure craft (small commercial vessels) will be required to be registered. All non-pleasure crafts currently licensed by Transport Canada under the Small Commercial Vessel Licensing System will also be required to be registered with the department’s Small Vessel Register. This procedural change is outlined under Part 2, Registration, Listing and Recording of CSA 2001. Pleasure crafts are no longer required to be registered but must be licensed unless the owner chooses to be registered.

The main difference between the registration of small commercial vessels in the large Register (mandatory registration of vessels over 15 gross tons) and those in the Small Vessel Register (non-pleasure vessels less than or equal to 15 gross tons) is that vessels on the large Register can register a mortgage whereas vessels on the Small Vessel Register cannot.

Under the current Small Commercial Vessel Licensing System there is a $50 registration fee and a $50 renewal fee every five years. For the Small Vessel Register, under the proposed Vessels Registry Fees Tarrif owners of a fleet of vessels will qualify for a flat fee of $50. To qualify for a flat fee, there must be two or more vessels, each being less than 5 gross tonnage, that are owned by the same person. This provision will not apply to government vessels or to vessels owned and in the service of a municipality or in the exclusive possession of a municipality.

Transitional Period

There will be a grace period under Part 13 of the CSA 2001, which will affect small commercial vessels:

Under Section 272(a) and (b)

• Non-pleasure craft of less than or equal to 15 gross tons tonnage (GT), that meet the requirements of s.46 of the Act and were licensed under section 108 of the Canada Shipping Act, chapter S-9 of the Revised Statutes of Canada, 1985 when Part 2 comes into force whose licences were issued by a customs office on behalf of Transport Canada will have to be registered (copy of a sample licence attached below). Those vessels will, however, be deemed to be registered in the Small Vessel Register until one of two things happens:
  1. Upon a transfer of ownership wherein the new owner must apply for registration; OR
  2. If there is no transfer of ownership, five years after Part 2 comes into force
• Non-pleasure craft of less than or equal to 15 GT, that meet the requirements of s.46 of the Act and were licensed under section 108 of the Canada Shipping Act, chapter S-9 of the Revised Statutes of Canada, 1985 when Part 2 comes into force whose licences were issued by Transport Canada when Part 2 came into force, will have to be registered (copy of a sample licence attached below). Those vessels will, however, be deemed to be registered in the Small Vessel Register until one of two things happens:
  1. Upon expiry of the Small Commercial Vessel Licence (which is valid for a period of 5 years from the issue date); OR
  2. Upon a transfer of ownership wherein the new owner must apply for registration

Sample of Certificate of Registry for vessels under section 54 (1)

[Click on image to enlarge]

[Click on image to enlarge]

Samples of Licences for vessels under section 272 (a) and (b)

[Click on image to enlarge]

[Click on image to enlarge]

S.46 of the Canada Shipping Act 2001 states:

Mandatory registration of vessels

46. (1) A vessel must be registered under this Part if it

1. is not a pleasure craft;
2. is wholly owned by qualified persons; and
3. is not registered, listed or otherwise recorded in a foreign state.

Obligation of owner

(2) Every owner of a vessel described in subsection (1) shall ensure that it is registered under this Part.

Mandatory registration- government vessels

(3) Every government vessel must be registered under this Part.