Bill C-73

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First Reading

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	132. Subsection 545(1) of the Act is replaced by the following:
No clearance granted unless there is compliance with regulations	545. No customs officer shall grant a clearance to any ship that is wholly or partly laden with grain, except as provided in section 541, with a timber deck cargo or with concentrates, within the meaning of section 540, consigned to any place outside Canada and not being a place within the limits of an inland voyage, unless the master of the ship produces to the customs officer a certificate signed by the port warden that the regulations made under subsection 338.1(1) in respect of grain cargoes or timber deck cargoes have been complied with or that concentrates have been loaded and secured according to ap proved practices , as the case may be.
R.S., c. 6 (3rd Supp.), s. 77	133. Section 562 of the Act is replaced by the following:
Rules and regulations	562. (1) The Governor in Council may make rules or regulations relating to the safety of life or limb on navigable waters.
Orders and regulations	(2) The Governor in Council may, by order or regulation, provide
	(a) for the government and regulation of any part or parts of Canadian waters;
	(b) for the licensing of operators of vessels on Canadian waters ; and
	(c) for the enforcement of any order or regulation.
Restriction of navigation	(3) Without limiting the generality of subsection (2) , any order or regulation made by the Governor in Council under that subsec tion may provide for the controlling , prohibit ing or limiting of navigation on Canadian waters, in the interests of public safety or of promoting or ensuring the effective regulation of those waters in the public interest or for the protection or convenience of the public, of vessels not exceeding fifteen tons gross ton nage.
	134. Section 562.1 of the Act is amended by adding the following after subsection (1):
Form of charts, etc.	(1.1) The charts and nautical publications required by regulations made under paragraph (1)(a) may be in any form, including any electronic data format.
R.S., c. 6 (3rd Supp.), s. 78	135. Section 562.12 of the Act is repealed.
R.S., c. 6 (3rd Supp.), s. 78	136. Subsection 562.19(4) of the Act is replaced by the following:
Ship may be detained	(4) Where the Commissioner of the Cana dian Coast Guard or any person authorized by the Commissioner of the Canadian Coast Guard for the purposes of this subsection believes on reasonable grounds that an of fence referred to in subsection (1) has been committed by or in respect of a ship, the Commissioner of the Canadian Coast Guard, or that other person, as the case may be , may make a detention order in respect of that ship, and section 618.6 applies to the detention order, with such modifications as the circum stances require.
R.S., c. 6 (3rd Supp.), s. 78	137. Section 562.2 of the Act is repealed.
	138. Subsection 569(2) of the Act is replaced by the following:
Offence and punishment	(2) An owner or master who , without reasonable cause, fails to comply with this section is guilty of an offence and liable on summary conviction to a fine not exceeding $10,000 .
	139. Subsection 578(1) of the Act is replaced by the following:
Limitation of liability of dock, canal and harbour owners or conservators	578. (1) The owners of any dock or canal, or a harbour commission, are not, where without their actual fault or privity any loss or damage is caused to any vessel or vessels, or to any goods, merchandise or other things whatever on board any vessel or vessels, liable to damages beyond an aggregate amount equiva lent to one thousand gold francs for each ton of the tonnage of the largest registered ship that, at the time of the loss or damage occurring is, or has been within any of the previous five years, within the area over which the dock or canal owner, or harbour commis sion, performs any duty or exercises any power.
	140. (1) Subsection 581(1) of the Act is replaced by the following:
Tonnage of ship	581. (1) For the purposes of sections 575 and 578, the tonnage of a ship, other than a sailing ship , shall be its register tonnage with the addition of any engine-room space de ducted for the purpose of ascertaining that tonnage, and the tonnage of a sailing ship shall be its register tonnage.
	(2) Subsection 581(2) of the English version of the Act is replaced by the following:
Space occupied by seafarers	(2) There shall not be included in the tonnage of a ship any space occupied by seafarers or apprentices and appropriated to their use that is certified under the regulations made pursuant to section 231.
	(3) Subsection 581(3) of the Act is re placed by the following:
Measure- ment of tonnage	(3) The measurement of the tonnage of a ship shall be according to the law of Canada.
R.S., c. 27 (1st Supp.), s. 203; 1992, c. 51, s. 64	141. Sections 605 and 606 of the Act are repealed.
	142. Paragraph 609(a) of the Act is replaced by the following:
	(a) that proceeding is commenced at any time within but not later than two years after the commission of the offence or after the cause of complaint arises, as the case may be; or
	143. The Act is amended by adding the following after section 609:
Owner and master liable for contravention by ship	609.1 Except when this Act specifically provides otherwise, where a ship contravenes this Act or the regulations, the owner or master of the ship at the time of the contravention is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term of three months or to both, whether or not the ship has been convicted of the contravention.
	144. The portion of subsection 614(1) of the Act before paragraph (a) is replaced by the following:
Power to detain foreign ship that has occasioned damage	614. (1) Whenever any injury has in any part of the world been caused to any property belonging to Her Majesty or to any of Her Majesty's subjects by a foreign ship, and at any time thereafter that ship is found in Canadian waters, the Admiralty Court may, on being shown by any person applying sum marily that the injury was probably caused by the misconduct or want of skill of the master or seafarers of the ship, issue an order directed to any officer of customs or other officer named by the Court, requiring the officer to detain the ship until such time as the owner, master or consignee of the ship has
	145. The Act is amended by adding the following after section 617:
	Detention Orders
Order to be in writing	617.1 A detention order in respect of a ship must be in writing and addressed to all persons who, at the place where the ship is or will be, are authorized to give a clearance in respect of the ship.
Service	617.2 Where a detention order is made in respect of a ship, notice of the order must be served on the master of the ship
	(a) by delivering a copy of the order personally to the master; or
	(b) if personal service is not reasonably practicable,
	(i) by leaving a copy of the order for the master with the person on board the ship who is, or appears to be, in command or charge of the ship, or
	(ii) if the ship is within Canadian waters, by leaving a copy of the order with the owner or agent of the owner of the ship residing in Canada or, where no such owner or agent is known or can be found, by fixing a copy of the order to a prominent part of the ship.
R.S., c. 6 (3rd Supp.), s. 81	146. Section 618 of the Act is replaced by the following:
Who may detain ship	618. Where under this Act a ship is to be or may be detained, any commissioned officer on full pay in the naval, army or air service of Her Majesty or in the Canadian Forces, or any officer of customs, may detain the ship.
Definition of ``proper officer''	618.1 Where any provision of this Act provides that a ship may be detained until any document is produced to the proper officer of customs, ``proper officer'' means the officer who is able to grant a clearance or transire to the ship.
Unlawfully proceeding to sea - general detention	618.2 (1) If a ship that is detained under this Act other than pursuant to a detention order proceeds to sea before it is released by a competent authority, the master of the ship, the owner and any person who sends the ship to sea are each guilty of an offence and liable on summary conviction to a fine not exceed ing $5,000.
Unlawfully proceeding to sea - detention order	(2) If a ship that is detained pursuant to a detention order proceeds to sea after service of the notice of the detention order and before it is released by a competent authority, the master of the ship, the owner and any person who sends the ship to sea are each guilty of an offence and liable on summary conviction to a fine not exceeding $100,000.
Limitation	(3) The owner or person who sends the ship to sea may be convicted under subsection (1) or (2) only if the owner or that person knows the ship was detained and is party or privy to the act of sending the ship to sea before its release by a competent authority.
Unlawfully taking detention officer to sea	618.3 (1) Where a ship proceeds to sea in the circumstances referred to in subsection 618.2(1) or (2) and takes to sea any officer authorized to detain the ship or any officer of customs, while the officer is on board in the execution of any duty under this Act, the master of the ship and the owner are each guilty of an offence and liable,
	(a) to pay all expenses of and incidental to the officer being so taken to sea; and
	(b) on summary conviction to a fine not exceeding $5,000, or on conviction on indictment, to a fine not exceeding $2,500 for every day until the officer returns, or until such time as would enable the officer after leaving the ship to return to the port from which the officer was taken.
Recovery of expenses	(2) Any expenses ordered to be paid under paragraph (1)(a) may be recovered in like manner as a fine imposed under paragraph (1)(b).
Refusal of clearance - detention generally	618.4 Where under this Act a ship is to be detained other than pursuant to a detention order, an officer of customs shall, and, where under this Act a ship may be detained, an officer of customs may, refuse to clear that ship outward.
Refusal of clearance - detention order	618.5 (1) Subject to subsection (2), no person to whom a detention order is addressed shall, after notice of the order is received by the person, give clearance in respect of the ship to which the order relates.
When clearance shall be given	(2) A person to whom a detention order is addressed and who has received notice of the order shall give clearance in respect of the ship to which the order relates where
	(a) security satisfactory to the Minister in the amount of $100,000 is given to Her Majesty in right of Canada;
	(b) the ship has not, within thirty days after the making of the detention order, been charged with an offence under the Part of this Act under which the order was made; or
	(c) the ship has, within thirty days after the making of the detention order, been charged with an offence under the Part of this Act under which the order was made and
	(i) security, satisfactory to the Minister, for payment of the maximum fine that might be imposed as a result of a conviction of a ship charged with that offence, or in such lesser amount as may be approved by the Minister, is given to Her Majesty in right of Canada, or
	(ii) proceedings in respect of the alleged offence that gave rise to the making of the detention order are discontinued.
Sale of ship where no appearance and no security	618.6 (1) Where a ship detained pursuant to a detention order has, within thirty days after the making of the order, been charged with an offence under the Part of this Act under which the order was made and, within thirty days after the day on which the ship was charged with the offence,
	(a) no one has appeared on behalf of the ship to answer to the charge, and
	(b) security referred to in subparagraph 618.5(2)(c)(i) has not been given,
	the Minister may apply to a court for an order authorizing the Minister to sell the ship.
Sale of ship where appearance but no security	(2) Where a ship detained pursuant to a detention order has, within thirty days after the making of the detention order, been charged with an offence under the Part of this Act under which the order was made and
	(a) within thirty days after the day on which the ship was charged with the offence, someone has appeared on behalf of the ship to answer to the charge but security referred to in subparagraph 618.5(2)(c)(i) has not been given, and
	(b) the ship is convicted and a fine is imposed and not paid forthwith,
	the Minister may apply to a court for an order authorizing the Minister to sell the ship.
Notice	(3) As soon as is feasible after making an application under subsection (1) or (2) for the sale of a ship, the Minister shall give notice of the application by registered mail to
	(a) the registrar of the register in which the ship is recorded;
	(b) the holder of any mortgage against the ship that is registered on the register referred to in paragraph (a); and
	(c) the holder of any maritime lien against the ship and the holder of any like interest known to the Minister at the time of application.
Day notice deemed to be given	(4) A notice sent by registered mail under subsection (3) is deemed to have been given to the person to whom it was sent on the day on which an acknowledgement of receipt in respect thereof is received by the Minister.
Court may relieve Minister of giving notice	(5) Where the court seized of an application under subsection (1) or (2) is satisfied that it is appropriate to do so, the court may relieve the Minister of the obligation to give the notice referred to in subsection (3), or authorize the Minister to give the notice in such other manner as the court deems fit.
Claiming interest	(6) Where an application is made under subsection (1) or (2) in respect of a ship,
	(a) any person referred to in paragraph (3)(b) or (c) may, within sixty days after the notice is given to that person, and
	(b) any other person who claims an interest in the ship as mortgagee, or as the holder of a maritime lien or as the holder of any like interest, may, within sixty days after the application is made,
	apply by notice in writing to the court seized of the application for an order referred to in subsection (7).
Order	(7) Where, on the hearing of an application made under subsection (6), it is made to appear to the satisfaction of the court
	(a) that the applicant acquired the interest in respect of which the applicant is applying in good faith prior to the commission of the offence in respect of which the ship was detained, and
	(b) that the applicant is innocent of any complicity or collusion in respect of the offence in respect of which the ship was detained,
	the court shall grant to the applicant an order declaring the nature, extent and priority of the applicant's interest at the time of the commis sion of the offence.
Appeal	(8) Any person who makes an application under subsection (6), and the Minister, may appeal to the court of appeal from an order referred to in subsection (7) and the appeal shall be asserted, heard and decided according to the ordinary procedure governing appeals to the court of appeal from orders or judg ments of a court.
Applications under subsection (6) to be heard first	(9) A court shall not hear an application under subsection (1) or (2) until all applica tions under subsection (6) in relation thereto have been heard.
Court may authorize sale	(10) A court hearing an application under subsection (1) or (2) may authorize the Minister to sell the ship to which the applica tion relates in such manner and subject to such terms and conditions as the court considers appropriate and, on application by the Minis ter, give directions to the Minister as to the rank of the interests of persons who have obtained an order referred to in subsection (7).
Payment of proceeds	(11) Where a ship is sold pursuant to this section, any surplus remaining from the proceeds of the sale after deducting

Bill C-73

Detention Orders