Administrative Monetary Penalties under Canada Marine Act

Summary#

The final rules called the Administrative Monetary Penalties (Canada Marine Act) Regulations set up a system of on‑the‑spot monetary penalties for breaches of the Canada Marine Act and a group of related port and harbour regulations. They let enforcement officers issue scaled fines (up to $5,000 for an individual and $25,000 for a corporation or ship) and came into force when published in the Canada Gazette, Part II on July 5, 2023.

What it does#

• Creates an administrative monetary penalty (AMP) regime for the Canada Marine Act and these regulations:
  • Port Authorities Operations Regulations
  • Public Ports and Public Port Facilities Regulations
  • Seaway Property Regulations
  • Natural and Man-made Harbour Navigation and Use Regulations
• Classifies each designated breach as minor, serious, or very serious, and lists 85 specific provisions that may attract AMPs.
• Sets maximum penalty limits:
  • For an individual: $1,250 (minor), $2,500 (serious), $5,000 (very serious).
  • For a corporation or ship: $6,250 (minor), $12,500 (serious), $25,000 (very serious).
• Explains how a penalty is calculated using a formula (baseline + history + harm + economic gain – mitigation). It factors in:
  • past non‑compliance,
  • real or potential harm to people, property or the environment,
  • any economic gain from the breach,
  • mitigating actions or cooperation (mitigating reductions of 20% for voluntary disclosure or 10% for cooperation/voluntary mitigation).
• Allows some ongoing breaches to be penalized for each day they continue (where the schedules show an “X”).
• Sets practical rules on how notices are served and how payment works:
  • Payment due within 30 days of service.
  • Acceptable payment methods include credit card, certified cheque, or money order payable to the Receiver General.
  • Service by registered mail is effective on the 4th day after sending (per the rules).
• Gives recipients the right to ask the Transportation Appeals Tribunal of Canada (TATC) to review a penalty decision.
• Requires training for enforcement officers; the government estimated a one‑time implementation cost of $21,126 (split as $16,763 to the Government of Canada and $4,362 to third‑party enforcement companies).

Who's affected#

• Enforcement officers working under the Canada Marine Act (including those employed by Transport Canada, Canada Port Authorities, the St. Lawrence Seaway Management Corporation, and the Department of National Defence). The rules note about 87 third‑party EOs and 15 government EOs who will be trained on the regime.
• Port operators and managers, including Canada Port Authorities and public ports.
• Vessel owners, operators, masters and crews, and businesses working in port areas (for example, companies doing dredging or cargo operations).
• Users of specific regulated harbours, and anyone who might breach the listed port or harbour rules.
• The public generally, insofar as the measures aim to improve safety and compliance.

Why it matters#

• It gives enforcement officers a middle tool between a warning and prosecution. That lets them respond more proportionately to different levels of non‑compliance.
• Monetary penalties are scaled to the seriousness of the breach and to aggravating/mitigating circumstances. That can make enforcement more predictable and better targeted.
• Maximum fines are notable: up to $5,000 for individuals and $25,000 for corporations or ships. Repeated or continued breaches can lead to additional daily penalties.
• The government expects this regime to reduce the number of prosecutions and to improve safety and order in ports by encouraging compliance.
• The immediate cost to government for rolling out training was estimated at $21,126, a modest, one‑time implementation expense.