Shipping penalties raised to $250,000

Summary#

This is a Part I proposal from Transport Canada (published June 10, 2023) to change the Administrative Monetary Penalties and Notices (CSA 2001) Regulations so penalties better match the risks from modern shipping. If finalized, the maximum administrative monetary penalty would be raised from $25,000 to $250,000 per violation, and new marine safety rules would be made subject to those penalties. This is a proposal, not yet law, and the public can comment within 75 days of the notice.

What it does#

• Raises the maximum administrative monetary penalty under the Canada Shipping Act, 2001 from $25,000 to $250,000 per violation (this change was authorized for the Act in 2018 but the AMPNR have not yet been updated).
• Updates penalty ranges for a number of existing designated violations:
  • 121 existing violations under the Act itself.
  • 70 violations in several related regulations (for example, 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 additional rules as violations so they can be enforced with AMPs (these rules were previously enforced only by warnings or prosecution):
  • 18 provisions of the Arctic Shipping Safety and Pollution Prevention Regulations (ASSPPR).
  • 154 provisions of the Vessel Fire Safety Regulations (VFSR).
• Keeps the AMP system’s three "gravity" levels (minor, medium, serious) and provides new dollar ranges so penalties fit the seriousness and type of violator. General examples of the proposed ranges:
  • Minor: $260–$1,250 (individuals) and $525–$10,000 (vessel or corporation).
  • Medium: $1,300–$6,250 (individuals) and $2,625–$100,000 (vessel or corporation).
  • Serious: $2,625–$12,500 (individuals) and $5,250–$250,000 (vessel or corporation).
• No new safety or technical rules are being created. These amendments only make existing requirements subject to AMPs.
• If finalized, the regulations would come into force on the day they are published in Canada Gazette, Part II.

Who's affected#

• Vessel owners and operators, including commercial shipping companies, passenger vessels, fishing vessels and others that operate in Canadian waters.
• Ports, marine service providers, and inspectors who deal with marine safety and pollution rules.
• Coastal and Indigenous communities that have raised concerns about enforcement effectiveness.
• Transport Canada enforcement officers and the marine industry (they will have updated penalty ranges to use).
• The government notes its review under the small business lens found no expected impact on Canadian small businesses.

Why it matters#

• It makes monetary penalties large enough (up to $250,000) to match the potential harm from big ships and serious safety or pollution breaches. That is intended to be a stronger deterrent than the old $25,000 cap.
• It brings enforcement of newer rules (the ASSPPR and VFSR) into the same AMP system used for other marine safety and environmental rules. Those rules were previously enforceable only by warnings or by recommending prosecution.
• AMPs are administrative, not criminal. They can be quicker and avoid criminal records, but larger AMPs could still be substantial for companies or vessels found in serious breach.
• For the most serious crimes, other tools remain available, such as court prosecution. The notice reminds readers that a summary conviction can carry fines up to $1,000,000 and/or imprisonment up to 18 months.
• Because this is a Part I proposal, the public and industry can comment before any final decision is made.