Shipping 2026

CANADA Law and Practice Contributed by: Rui Fernandes, Andrea Fernandes and Conal Calvert, Gardiner Roberts LLP

1.4 Requirements for Ownership of Vessels A Canadian registered vessel may be jointly owned by up to five persons, one of whom must be a “qualified person”, which is defined as either a Canadian corpo - ration or a Canadian citizen or permanent resident. A non-citizen may own a Canadian registered vessel if they are a permanent resident or if they do so jointly with a Canadian corporation or citizen. In the event that an unqualified person is the registered owner of the vessel, any interested person may apply to the Federal Court for an order for the sale of the vessel, or their share in the vessel, to a qualified person. An exception to this rule is that a foreign corporation may own a vessel registered in Canada if a subsidiary of that corporation registered in Canada, an employee or director of a branch office of that corporation car - rying on business in Canada, or a ship management company incorporated in Canada is acting in respect to all matters relating to the vessel. A vessel under construction cannot be entered into the registry but it can be recorded with Transport Canada. This allows the party building the vessel or the intended owner to register a shipbuilder’s mort - gage, secure a vessel registration number and reserve a name for the vessel. 1.5 Temporary Registration of Vessels A vessel may be temporarily registered in Canada pro - vided that it is bare-boat chartered exclusively to a “qualified person”, but the registration in the foreign jurisdiction must be suspended in respect of the right to fly that state’s flag for the duration of the charter and the registration period. Canada does not permit the dual registration of ves - sels except insofar as this is part of a temporary reg - istration of a bare-boat charter as described above. 1.6 Registration of Mortgages Ship mortgages must be filed with the Chief Registrar of the Canadian Registry of Vessels, who maintains the registry of such mortgages pursuant to the Can - ada Shipping Act 2001 (CSA). A mortgage may only be registered under the CSA for vessels appearing in the register.

• International Convention on Standards of Train - ing, Certification and Watchkeeping for Seafarers (STCW); • Tokyo MOU and Paris MOU; and • domestic laws applicable to vessels in Canadian waters. In port, Transport Canada inspectors may board and inspect foreign vessels to verify safety and compli - ance with Canadian and international laws and may order that issues be addressed before the vessel is permitted to leave port. If issues are not addressed, particularly as concerns pollutants, Transport Canada can issue fines and lay charges against the ship-own - ers. Transport Canada is also responsible for investigating accidents to verify compliance with federal laws and regulations, including labour laws. In cases of more serious accidents and incidents, the Transportation Safety Board may also opt to investigate. The Canadian Coast Guard regulates marine traffic and is responsible for screening vessels and issuing clearance to ships prior to entry into Canadian waters. Vessels entering Canadian waters must report their identity, condition, destination and any pollutants or dangerous cargo carried aboard. Unlike its American counterpart, the Canadian Coast Guard is not a law enforcement agency, although it provides operational support to law enforcement agencies in respect of maritime security. Transport Canada will also work alongside law enforcement authorities where appro - priate, usually the Royal Canadian Mounted Police and the Canada Border Services Agency. 1.3 Domestic Legislation Applicable to Ship Registration The Canada Shipping Act 2001 (CSA) and its regula - tions govern ship registration in Canada with Transport Canada responsible for the registration of vessels. Registered vessels are listed in separate registries depending on gross tonnage, with vessels exceeding 15 GT registered with the Canadian Register of Ves - sels and those of less than 15 GT in the Small Vessel Register.

118 CHAMBERS.COM