C47-1 – Application for Duty Remission On a 1/120th Basis for Vessel Temporary Admission to the Coasting Trade of Canada Where a Coasting Trade Licence is Not Required

Protected A when completed

Pursuant to the Coasting Trade Act, December 1, 1992, and P.C. 1990-939 Vessel Duties Reduction or Removal Regulations

Please send application to:

Canada Border Border Services
Commercial Registration Unit
191 Laurier Ave. W., 12th Floor
Ottawa ON K1A 0L8
Fax: (613) 946-0242
E-mail: coastingtrade-cabotage@cbsa-asfc.gc.ca

1. Characteristics of vessel

• (a) Name of vessel
• (b) Country of Registry of Vessel
• (c) Type of vessel
• (d) Number of Passengers (if applicable)

2. Type of Operation – Feeder Services

• (a) Type of Operation
• (b) Type of Cargo
• (c) Trip Location (for Single Trip)
• (d) Foreign Cargo Loading/Discharge Ports

3. Type of Operation Dredging

• (a) Private dredging - Dragage privé

Note: For Federally Procured Dredging at or about the Federal Government threshold, please use Form C47, Application for Temporary Admission to the Coasting Trade of Canada - Coasting Trade Licence Required, however they will not need to meet the requirement of no suitable Canadian vessels available.

4. Type of Operation – Empty Container Repositioning

• (a) Repositioning owned or leased empty containers on a non-revenue basis
• Location: From YYYY-MM-DD to YYYY-MM-DD

5. Complete Description of the Proposed Engagement/Operation

• (a) Geographical/trip location(s) including origin, destination, and all points/ports to be served
• (b) Details of cargo (including tonnage) or other marine activity (if applicable)
• (c) CBSA office of importation
• (d) CBSA office of accounting
• (e) Period of operation
• (f) Start Date
• (g) End Date
• (h) Will the vessel be undertaking other cabotage activities in Canadian waters? (Yes/No)
  • If yes please specify
• (i) Did you apply for a coasting trade licence? (Yes/No)

6. Details of the Importer

• (a) Legal Name of Business and Address
• (b) Operating Name of Business

7. Details of Vessel Registered Owner or Chartered

• (a) Registered owner/Charterer of the vessel
• (b) Name and Title -
• (c) Address
• (d) Telephone No.
• (e) Fax No.
• (f) E-mail address

8. Details of the Applicant/Broker/Agent

• (a) Company Name
• (b) Address
• (c) Telephone No.
• (d) Fax No.
• (e) E-mail address
• (f) Signature of applicant or authorized representative
• (g) Date
• (h) Name of person signing application (Print.Type)

Guidelines for Completing an Application for Duty Remission On a 1/120th Basis for Vessel Temporary Admission to the Coasting Trade of Canada Where a Coasting Trade Licence is Not Required

All vessels entering Canada, including Canadian vessels are subject to the provisions of the Customs Tariff. In addition, foreign and non-duty paid vessels are subject to restrictions contained in the Coasting Trade Act. The Act reserves the coasting trade to Canadian ships and extends the jurisdiction of the coasting trade laws to include offshore development on the Canadian continental shelf. It also includes all commercial marine activities in addition to the carriage of passengers or goods. Foreign or non-duty paid vessels may temporarily enter the coasting trade upon payment of duty and taxes, where it can be established that no suitable Canadian ship is available for a particular movement or service. There are some exceptions to the licence requirement, as outlined in section 3 of the Coasting Trade Act.

All vessels must continue to comply with CBSA and Transport Canada marine reporting requirements. An application for a reduction in duty without the requirement to obtain a coasting trade licence should be submitted to the CBSA at least 10 days in advance of the proposed activity at coastingtrade-cabotage@cbsa-asfc.gc.ca. For empty container repositioning, please submit your application as soon as possible prior to the proposed commencement of the activity (at least three business days before the arrival of the vessel). (Please take note that the CBSA will require some time to process these applications.)

The CBSA (Commercial Registration Unit) will issue a letter of opinion for approval or denial of the request for duty reduction and to authorize the applicant to proceed to the office of importation to complete the process. Duty reduction is conditional on the vessel undertaking the coasting trade activity referred to in subsections 3(2.1) to (2.4) of being operated in accordance with the Coasting Trade Act. It is incumbent on the vessel owner to provide the CBSA with sufficient evidence to this effect, including any correspondence received from Transport Canada.

Application for Duty Remission on a 1/120th Basis for Vessel Temporary Admission to the Coasting Trade of Canada where a Coasting Trade Licence is not Required

1. An application for a reduction in duty on a 1/120th basis without the requirement to obtain a coasting trade licence is to be made using Form C47-1 and forwarded to the CBSA at least 10 days in advance of the proposed activity at: coastingtrade-cabotage@cbsa-asfc.gc.ca

Mailing address:
CBSA - Commercial Registration Unit
12th Floor, Sir Richard Scott Building
191 Laurier Avenue West
Ottawa, ON K1A 0L8

2. The CBSA will review the application and issue a letter to the applicant regarding whether they are of the opinion that the vessel qualifies for a duty reduction on a 1/120th basis, without the requirement of obtaining a Coasting Trade Licence.

3. However, before the applicant may commence the operations as set out in the letter of authorization issued by the CBSA's Commercial Registration Unit, Commercial Operations Division, the applicant will be required to present to the CBSA office of importation specified on their application, the following:

• (a) provide the CBSA office of importation a copy of the letter of authorization;
• (b) satisfactory evidence that applicable duties and taxes have been accounted for (i.e. provide Form B3, indicating the special authority code) along with payment; and

Note: As required under section 32 of the Customs Act, a vessel must be properly accounted for upon arrival in Canadian waters.

Vessel Duties

4. The tariff classification and origin of the goods as outlined in the Customs Tariff, determines the applicable rate of duty.

5. For certainty regarding the tariff classification or origin of a product, importers may request a binding advance ruling. Details on how to make such a request are found in CBSA Memoranda D11-11-3, Advance Rulings for Tariff Classification and D11-4-16, Advance Rulings for Origin Under Free Trade Agreements. The CBSA also offer binding rulings on non-FTA origin and the valuation of goods; please see Memorandum D11-11-1, National Customs Rulings.

Completion of Form C47-1.

Please provide any supporting documentation relevant to support your application for a reduction in duty. (i.e., a copy of your Transport Canada letter of opinion that a coasting trade licence is not required for the proposed activity)

1. Characteristics of Vessel

• (a) Name of Vessel
• (b) Country of registry of Vessel
• (c) Type of Vessel
• (d) Number of Passengers

2. Type of Operation - Feeder Services

• (a) Type of Operation - (Select from drop down menu)
  • Continuous - sub-section 3 2.3 of the Coasting Trade Act
  • Single Trip - sub-section 3 2.3 of the Coasting Trade Act
  • Single Trip - sub-section 3 2.4 of the Coasting Trade Act
• (b) Type of Cargo - (Select from drop down menu)
  • Containerized cargo
  • Break bulk cargo
  • Dry or liquid bulk cargo
• (c) Trip Location (for Single Trip) - (Select from drop down menu)
  • Halifax to Montreal
  • Montreal to Halifax
• (d) Foreign Cargo Loading/Discharge Ports

3. Type of Operation - Dredging

• (a) Private dredging

Note: For Federally Procured Dredging at or about the Federal Government threshold, please use Form C47, Application for Temporary Admission to the Coasting Trade of Canada - Coasting Trade Licence Required, however they will not need to meet the requirement of no suitable Canadian vessels available.

4. Type of Operation - Empty Container Repositioning

• (a) Empty Container Repositioning (indicate by checking the check box) and (indicate the location of the repositioning (Location: From YYYY-MM-DD to YYYY-MM-DD)).

5. Complete Description of Proposed Engagement /Operation

• (a) Geographical/trip location(s) including origin, destination, and all points/ports to be served.
• (b) Details of cargo (including tonnage) or other marine activity (if applicable)
• (c) CBSA office of importation (This is the office where the vessel is reported to the CBSA and where all documents are presented for verification or scrutiny)
• (d) CBSA office of accounting (This is the office where duties and taxes will be accounted for)
• (e) Period of operation (indicate the number of months the vessel will be engaged in coasting trade - maximum 12 months)
• (f) Start date
• (g) End date
• (h) Will the vessel be undertaking other cabotage activities in Canadian waters? Select Yes or No from drop down menu. (Note - If you are undertaking cabotage activities other than those indicated on this form, please use Form C47 to apply for a Coasting Trade Licence.)
• (i) Did you apply for a coasting trade licence? Select Yes or No from Drop down menu.

6. Details of the Importer

• (a) Legal Entity Name of Importer and Address (This is the name under which the importer is registered with the Canada Revenue Agency)
• (b) Operating Name (This is the name under which the company operates if different from the legal entity)

7. Details of Vessel Registered Owner or Charterer

• (a) Please indicate whether the information is for the:
  • Registered owner
  • Charterer of the vessel
• (b) Telephone Number
• (c) Fax Number
• (d) Name and Title
• (e) Address
• (f) E-mail address

8. Details of the Applicant/Broker/Agent

• (a) Company name
• (b) Telephone Number
• (c) Fax Number
• (d) Address
• (e) E-mail address
• (f) Signature of applicant or authorized representative
• (g) Date (indicate the date the application was signed)
• (h) Name of person signing application (Please type or print)

Date modified:

2017-09-22