What is fee modernization?

    Fee Modernization is a Transport Canada (TC) Transformation Initiative to update existing service fees and introduce others so we can:

    • ensure that those who benefit from TC services pay a greater portion of the costs;
    • continue to respond to industry demands to support innovation and use of modern technologies; and
    • continue to provide high quality services for business, employment and recreation.

    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.

    How were TC’s full costs determined for marine cargo services?

    Full cost is the allowable upper limit of a service fee and represents the departure point for pricing.

    A full cost estimate comprises all relevant resource costs incurred to deliver an activity or provide a service, including:
    • employee salaries;
    • operating and maintenance;
    • amortization of capital assets;
    • program support;
    • internal services;
    • centrally managed costs, such as employee benefit plans; and
    • services provided by other departments, such as office accommodations.

    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 Transportation website, 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.

    When would TC start charging the new fee for marine insurance certification services?

    TC expects to introduce new fee for Marine Insurance Certification Services in fiscal year 2020-21.