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

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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

2. Type of Operation – Feeder Services

3. Type of Operation 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

5. Complete Description of the Proposed Engagement/Operation

6. Details of the Importer

7. Details of Vessel Registered Owner or Chartered

8. Details of the Applicant/Broker/Agent


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:

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

2. Type of Operation - Feeder Services

3. Type of Operation - 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

5. Complete Description of Proposed Engagement /Operation

6. Details of the Importer

7. Details of Vessel Registered Owner or Charterer

8. Details of the Applicant/Broker/Agent

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