Why does TC need to modernize fees for marine cargo services?
Currently,
all of the costs of providing marine insurance assessment and certification
services are borne by Canadian taxpayers. However, the primary benefits of
having these certificates are realized by the ship owners receiving these
certificates, who can then call at Canadian ports and other signatory state
ports and access those respective markets.
A key
principle underlying any cost recovery initiative is that service recipients
who receive a direct benefit above those enjoyed by the general public should
pay a greater share of the costs. A fee
for marine insurance assessment and certification services leading to the
issuance of a certificate needs to be introduced to ensure that this principle
is realized.
Under the Fee
Proposal for Marine Insurance Certification Services, TC proposes to establish
a new fee of $98 per certificate.
What are the features of the new proposed fee structure?
The new fee is for services related to the marine insurance assessment
and certification services. The issuance of the marine insurance certificates
is proposed to be $98 per certificate.
In order to meet the requirements of the Service Fees Act, TC is proposing the following service standard
for this service:
‘’To issue the
applicable certificate of insurance within 10 business days of receiving a full
and complete application, including the relevant documentation support.’’
In accordance with
the In accordance with
the Service Fees Act,
the proposed fee will be indexed annually every April 1st, based on the applicable Consumer Price Index published by
Statistics Canada.
Were stakeholders informed that TC plans to modernize its fees?
Yes. Several presentations were made to raise
awareness and seek input from stakeholders at the regional and national plenary
sessions of the Canadian Marine Advisory Council (CMAC) meetings held between
December 2017 and May 2018. These presentations outlined the goals and
timeframes associated with this initiative. Stakeholders were provided the
opportunity to ask questions and provide input and will have a further
opportunity to provide comments through the Let’s Talk Transportation website.
How can stakeholders participate in this public consultation?
As we consider introducing
this fee for Marine Insurance Certification Services, we are asking for
stakeholder feedback throughout the process.
From February 13 through April
12, 2019, we are inviting stakeholders to read the Fee Proposal published on the Let’s Talk Transportationwebsite, where stakeholders can provide
their feedback. Input and comments submitted through the website will be
recorded and considered in the development of an amendment to the applicable
regulations.
Finally, the proposed amendments to the regulations will be published in
Canada Gazette for consultation prior to coming-into-force.
