Exporter Reporting for Bulk Oil Exports

Summary#

These are proposed rules called Regulations Amending the Marine Liability and Information Return Regulations (Exporters), published in the Canada Gazette on October 10, 2020. They would require certain companies that export oil by ship to file annual reports of the amounts exported. The rules are at the proposal stage and the government invited comments within 30 days of publication.

What it does#

• Requires any person in Canada who, in a calendar year, exports by sea more than 150,000 metric tons of persistent oil (for example crude oil) or more than 17,000 metric tons of non-persistent oil (for example gasoline or jet fuel) to file an annual information return.
• Sets the report deadline as no later than February 28 of the year after the exports (for example, exports in 2021 would be reported by February 28, 2022).
• Matches the format and most content to the existing reporting that oil receivers (importers) already provide, including the agent/principal rule for non-persistent oil: agents must identify the principal and vice versa.
• Defines what counts as exported “by sea” for eastern Canada using a fixed geographic boundary, and clarifies transshipment reporting rules in line with international rules.
• Adds minor wording and consistency changes to the Marine Liability and Information Return Regulations and removes references that are no longer relevant after 2018 legislative changes.
• Notes penalties for failing to file or for providing false information: fines up to $250,000, and administrative monetary penalties up to $50,000 for individuals and $250,000 for other persons.

Who's affected#

• Primarily companies that export oil in bulk by ship from Canada and that exceed the thresholds. The government estimates about 30 companies would be affected.
• Oil producers, refiners, exporters, and shipping operators involved in bulk oil exports. Those who already report to the Canada Energy Regulator (CER) may need to convert reported volumes into weight (metric tons).
• Small businesses are not expected to be affected (the government analysis says none of the affected stakeholders are small businesses).
• If a levy on oil shipments were ever re‑imposed, both exporters and receivers could be required to contribute to the Ship-source Oil Pollution Fund (SOPF) — these reporting rules would help identify who would pay.

Why it matters#

• The rules are meant to make exporters visible in the oil-spill compensation system so they can share liability with receivers if the fund needs more money in the future. This follows the “polluter pays” idea.
• The added paperwork is small, according to the government: total present-value administrative costs estimated at $12,406.78 over 10 years (about $27 per business annually), with each affected company estimated to spend about 60 minutes per year preparing the report.
• Accurate reporting would allow the SOPF to call for contributions from both sides of an oil shipment if a levy were brought back. That matters to taxpayers, coastal communities, and businesses that could otherwise face higher cleanup costs after spills.
• These are proposed regulations, not law yet. The publication invited comments for 30 days after October 10, 2020.