To help promote operator and stakeholder compliance with Canadian law, this document explains how the Coasting Trade Act applies to seafarers on foreign-flagged vessels in Canadian waters.
On this page
- The Coasting Trade Act
- Applying for work permits
- Coasting trade exemptions and impact on work permit requirement
- Questions
- Related links
The Coasting Trade Act
Coasting trade refers to any commercial marine activity within Canadian waters. Above the continental shelf of Canada, these activities must be related to the transport, exploration or exploitation of the minerals and non-living natural resources of the continental shelf.
The Coasting Trade Act supports Canadian marine interests by reserving the coasting trade of Canada to Canadian-registered and duty-paid vessels. The legislation provides a process to temporarily import a foreign or non-duty paid vessel under a coasting trade licence when a suitable Canadian-registered duty paid vessel isn’t available. A coasting trade licence can be valid for up to one year.
Apply for a coasting trade licence
For a vessel owner or operator to obtain a coasting trade licence, the Canadian Transportation Agency must determine that no duty-paid Canadian vessel is suitable and available to provide the service. The vessel is also subject to Transport Canada safety inspection. All certificates and documents relating to the vessel must be valid and in force. Duties and taxes for the vessel must also be paid.
For more information and links to the licence process, forms and key contacts, please visit: Coasting trade in Canada.
Penalty for engaging in a coasting trade activity without a licence
Any vessel that is found in contravention of the Coasting Trade Act is guilty of an offence and is liable on summary conviction to a fine not exceeding $50,000. In addition, where a vessel commits an offence on more than one day or an offence is continued by a vessel for more than one day, it shall be deemed to be a separate offence for each day on which the offence is committed or continued.
Applying for work permits
Foreign workers employed on a foreign-flagged vessel engaged in cabotage in Canada may require both a Labour Market Impact Assessment (LMIA) and a work permit before they enter Canada. When required, it is recommended that you apply for a Coasting Trade licence and the LMIA simultaneously. The LMIA process is overseen by ESDC, and the work permit process falls under IRCC’s jurisdiction. If a work permit applicant does not include an LMIA (where required) and proof of a related Coasting Trade Licence, their work permit application may be refused. For more information, visit: who can apply. Be sure to check application, permit, and LMIA requirements as well as the processing timelines.
More information on LMIAs, including how to apply, can be found at the following links:
For more details on who is required to have a work permit and step-by-step instruction for work permits, please visit IRCC’s websites:
Note: The Immigration and Refugee Protection Act and the Immigration and Refugee Protection Regulations only cover who can legally work in Canada and when they need to get a work permit. Contracts or other legislation, such as agreements with port authorities, may govern who actually works in a particular port.
Coasting trade exemptions and impact on work permit requirement
Although a vessel may be exempt from the requirement for a Coasting Trade licence, the vessel’s crew will likely still require work permits. Visit ESDC and IRCC websites linked above for more information.
According to the Coasting Trade Act, there are some categories of marine activities for which a coasting trade licence is not required. These activities include vessels that are
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used as a fishing vessel, as defined by the Coastal Fisheries Protection Act;
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engaged in any ocean research activity commissioned by the Department of Fisheries and Oceans;
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operated or sponsored by a foreign government that has sought and received the consent of the Minister of Foreign Affairs to conduct marine scientific research;
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engaged in seismic activities in waters above the continental shelf of Canada that are in relation to the exploration for mineral or non-living natural resources of the continental shelf of Canada;
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engaged in salvage operations, except where such operations are performed in Canadian waters; or
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engaged, with the approval of a person designated as a pollution response officer under section 174.1 of the Canada Shipping Act, 2001, in activities related to a marine pollution emergency, or to a risk of a marine pollution emergency.
Canada’s trade agreement with the European Union, known as CETA and the Canada-UK Trade Continuity Agreement (CUKTA), also allow eligible European Union and British entities to offer a limited number of coasting trade services without a licence. These activities include feedering services between Halifax and Montreal and certain dredging activities.
Questions
If you have questions about the application of the Coasting Trade Act as it pertains to foreign workers, please contact Transport Canada’s Domestic Marine Policy Group: tc.coastingtrade-cabotage.tc@tc.gc.ca.
