Higher marine administrative fines up to $250,000

Summary#

This is a proposed change (published June 10, 2023) to the Administrative Monetary Penalties and Notices (CSA 2001) Regulations. It would let Transport Canada impose much higher administrative fines for some marine safety and pollution rules — up to $250,000 per violation — and add many rules under the new penalty system.

What it does#

• Raises the allowed maximum administrative monetary penalty from $25,000 to $250,000 per violation (the Canada Shipping Act, 2001 already allows this; the regulations would be updated to match).
• Updates penalty ranges for a large number of existing designated violations, including:
  • 121 violations under the Canada Shipping Act, 2001.
  • 70 violations across six regulations, including the Ballast Water Control and Management Regulations, Environmental Response Regulations, Load Line Regulations, Special-purpose Vessels Regulations, Vessel Safety Certificates Regulations, and Vessel Registration and Tonnage Regulations.
• Designates existing rules so they become enforceable by administrative penalties (instead of only warnings or prosecution) for:
  • 18 provisions in the Arctic Shipping Safety and Pollution Prevention Regulations.
  • 154 provisions in the Vessel Fire Safety Regulations.
• Designates subsection 10.1(4) of the Canada Shipping Act, 2001 (compliance with ministerial interim orders) as a violation subject to penalties.
• Keeps the three-level gravity system (minor / medium / serious) and different ranges depending on whether the violator is an individual, a vessel, or a corporation. Example ranges proposed:
  • Minor: individual $260–$1,250; vessel/corporation $525–$10,000.
  • Medium: individual $1,300–$6,250; vessel/corporation $2,625–$100,000.
  • Serious: individual $2,625–$12,500; vessel/corporation $5,250–$250,000.
• Confirms that the administrative penalty route remains an optional enforcement tool. Parties can ask the Transportation Appeal Tribunal of Canada to review a penalty.

(Comments on the proposal are invited within 75 days after the notice was published.)

Who's affected#

• Owners and operators of vessels of all sizes. Large commercial vessels are the most likely to face the highest fines.
• Shipping companies and other marine businesses and corporations.
• Masters, crew members or other individuals who have duties under marine safety and pollution rules.
• Coastal communities and Indigenous groups concerned about marine safety and environmental protection (the proposal notes concerns from some Indigenous communities that past penalties were insufficient).
• Transport Canada enforcement staff, who would have an expanded range of administrative penalties to use.
• The document says small businesses would not be disproportionately affected under the government’s analysis.

Why it matters#

• It makes the financial risk of breaking certain marine safety or pollution rules much larger. That can give regulators a stronger tool to deter unsafe or polluting behaviour, especially from large vessels and corporations.
• Rules that were only enforceable by warning or prosecution would become eligible for administrative fines. That provides a mid-level enforcement option between a warning and court prosecution.
• For vessel owners and operators, non-compliance could lead to significantly higher fines — though the highest amounts would generally be reserved for serious cases or repeat offenders.
• The proposal is not law yet. If finalized, the amendments would take effect when published in Canada Gazette, Part II.