RESTRICTED
WORLD TRADE S/NGMTS/W/8
18July1995
ORGANIZATION(95-2081)
Original: English Negotiating Group onMaritime Transport Services
COMMUNICATION FROM CANADA
Conditional Offer onMaritime Transport Services
Thefollowing communication iscirculated attherequest ofCanada tomembers ofthe
Negotiating Group onMaritime Transport Services.
____________
Canada hereby submits itsdraftofferonmaritime transport services totheNegotiating Group
onMaritime Transport Services. Theofferisconditional uponsatisfactory initial commitments being
received from other negotiating partners.
Canada reserves theright towithdraw, modify orreduce thisoffer, inwhole orinpart,at
anytimeonorbefore 30June1996, ifsatisfactory offers arenotmade byitsnegotiating partners.
Canada further reserves therighttomake technical changes andcorrections totheoffer.S/NGMTS/W/8
Page3Revised, 20June1995
CANADA -LIST OFARTICLE II(MFN) EXEMPTIONS
Sector
orSub-Secto rDescription ofMeasures Indicating their
Inconsistency with Article IICountries to
which the
Measure AppliesIntended
DurationConditions Creating theNeed
fortheExemption
AirandMaritime
Transport
- Exemptions
from taxExemptions from taxes onincome andcapital of
anon-resident person earned inCanada from the
operation ofashiporaircraft ininternational
traffic onthebasis ofreciprocity withthe
country inwhich theperson resides.Allcountries Indeterminate Maintenance ofreciprocity asthe
basis forthetaxexemption
Maritime transport
- Registration
ofshipsToregister, from outside Canada, avessel as
Canadian, theowner ofthevessel must be:
(i) acitizen ofaCommonwealth country,
or
(ii) acorporation incorporated under the
laws of,andhaving itsprincipal place
ofbusiness in,aCommonwealth
country.Countries ofthe
CommonwealthIndeterminate Maintenance ofexisting
preference pending possible
amendments toCanadian
legislation.S/NGMTS/W/8
Page5Revised, 20June 1995
CANADA -OFFER ONMARITIME TRANSPORT SERVICES
Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
TRANSPORT SERVICES
MARITIME TRANSPORT
SERVICES (SeeClarification on
lastpage)1Nomeasures shall beapplied tothe
following portservices which deny
reasonable andnon-discriminatory
access byinternational maritime
transport andmaritime auxiliary
service suppliers:
1. Pilotage.
2. Towing andtugassistance.
3. Provisioning, fuelling and
watering.
4. Garbage collecting andballast
waste disposal.
5. Navigation aids.
6. Shore-based operational
services essential toship
operations, including
communications, water and
electrical supplies.
7. Emergency repair facilities.
8. Anchorage, berth andberthing
services.
9. Lightering andwater taxi
services.
10. Shipagencies
1Approval isrequired fromtheNational Transportation Agency prior totheacquisition ofanyfederally regulated transportation undertaking withassets orannual gross salesinCanada inexcess of$10million.
Forthese purposes, atransportation undertaking means anybusiness principally engaged inanytransportation activity under federal jurisdiction within Canada, excluding (a)those operated byaperson whose principal
place ofresidence isoutside Canada, and(b)those engaged inthetransport ofgoods and/or passengers solely between Canada andanother country.S/NGMTS/W/8
Page6Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
TRANSPORT SERVICES (cont'd)
International Transport (Freight
andpassengers) CPC 7211 and7212 1.None, other than
Cabotage
Members ofaShipping
Conference thathasthepurpose
oreffect ofregulating rates and
conditions, must maintain
jointly anoffice oragency in
theregion ofCanada where
theyoperate.
2.None
3.None, other than:
toregister avessel inCanada,
theowner ofthatvessel must
beacitizen ofCanada ora
corporation incorporated under
thelaws ofandhaving its
principal place ofbusiness in
Canada.
4.Unbound except as
indicated inthehorizontal
section and:
Crew Members Remaining on
Board aVessel: None1.None
2.None
3.None
4.Unbound except as
indicated inthehorizontal
section11. Custom brokers
12. Stevedoring andterminal
services
13. Surveying andclassification
services
1. SeeNote onadditional
commitments
3. SeeNote onadditional
commitmentsS/NGMTS/W/8
Page7Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Replacement Crew Members:
None, other thanthattheymust
report totheir vessel within
forty-eight (48)hours after
being granted entry into
Canada.
Marine Surveyors:
None, other thanentry limited
toninety (90)days.
PortCaptain Services:
None, other thanentry limited
toninety (90)days.
Cabotage
Canadian Registered Vessels:
Officers andratings employed
onboard ofCanadian registered
vessels must bepermanent
residents.S/NGMTS/W/8
Page8Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
MARITIME AUXILIARY
SERVICES
Maritime Cargo Handling Services
(asdefined)
Storage andWarehousing Services
CPC 742(asamended)1.Unbound*
2.None
3.None
4.Unbound except asindicated in
thehorizontal section
1.Unbound*
2.None
3.None
4.Unbound except asindicated in
thehorizontal section1.Unbound*
2.None
3.None
4.Unbound except asindicated in
thehorizontal section
1.Unbound*
2.None
3.None
4.Unbound except asindicated in
thehorizontal section
*Acommitment onthismode ofdelivery isnotfeasible.S/NGMTS/W/8
Page9Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Customs Clearance Services (as
defined)1.None, other than:
Licensed Customs Brokers
(federal) (juridical persons):
requirement foracommercial
presence
(natural persons): requirement
forapermanent residency
2.None, other than
Licensed Customs Brokers
(federal) (juridical persons):
requirement foracommercial
presence
(natural persons): requirement
forapermanent residency
3.None, other than:
Licensed Customs Brokers
(federal) (juridical persons):
Commercial presence must be
bymeans ofincorporation ora
partnership
(a)Acorporation must be
incorporated inCanada andthe
majority ofitsdirectors must
beCanadian citizens or
permanent residents.
(b)Apartnership must be
composed ofpersons whoare
Canadian citizens orpermanent
residents.1.None
2.None
3.NoneS/NGMTS/W/8
Page10Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Container Station andDepot
Services (asdefined)
Maritime Agency Services (as
defined)4.Unbound except asindicated in
thehorizontal section and:
Licensed Customs Brokers
(federal) (natural persons):
requirement forpermanent
residency.
1.Unbound*
2.None
3.None
4.Unbound except as
indicated inthehorizontal
section
1.None
2.None
3.None
4.Unbound except as
indicated inthehorizontal
section4.Unbound except asindicated in
thehorizontal section
1.Unbound*
2.None
3.None
4.Unbound except asindicated in
thehorizontal section
1.None
2.None
3.None
4.Unbound except asindicated in
thehorizontal sectionSeeClarification ofOffer on
Maritime Transport
SeeClarification ofOffer on
Maritime Transport
*Acommitment onthismode ofdelivery isnotfeasible.S/NGMTS/W/8
Page11Sector orSub-Sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Maritime Freight Forwarding
Services (asdefined)1.None
2.None
3.None
4.Unbound except as
indicated inthehorizontal
section1.None
2.None
3.None
4.Unbound except asindicated in
thehorizontal sectionS/NGMTS/W/8
Page13NOTE ONADDITIONAL COMMITMENTS
Where road, rail,inland waterways andrelated auxiliary services arenototherwise fullycovered inthisschedule, multimodal transport operators, general
andbulkcargo shipping lines, shippers andtheirintermediaries shallhavetheability torentorleasetrucks, railway carriages orbarges, andrelated equipment,
forthepurpose ofinland forwarding ofcargoes, orhavereasonable andnon-discriminatory access to,anduseof,these forms ofmultimodal activities for
thepurpose ofcarrying outonward transport operations. "Reasonable andnon-discriminatory access" includes, forthepurpose ofthisadditional commitment,
theability ofthemultimodal transport operators, general andbulkcargo shipping lines, shippers andtheirintermediaries toarrange fortheconveyance of
merchandise onatimely basis, including priority overships ofmerchandise which haveentered theportatalaterdate.
DEFINITIONS
Forthepurposes ofthisoffer:
1. "Cabotage" services asdefined bytheCoasting Trade Actinclude:
(a) thetransportation ofgoods orpassengers byvessel between points intheterritory ofCanada anditsExclusive Economic Zone;
(b) withrespect towaters above thecontinental shelf, thetransportation ofgoods orpassengers inrelation totheexploration, exploitation,
ortransportation ofthemineral ornon-living natural resources ofthecontinental shelf; and
(c) theengaging byvessel inanymaritime activity ofacommercial nature intheterritory ofCanada andinitsExclusive Economic Zone
and,withrespect towaters above thecontinental shelf, insuchother maritime activities ofacommercial nature inrelation tothe
exploration, exploitation, ortransportation ofthemineral ornon-living natural resources ofthecontinental shelf.
Fornon-maritime transport services, "cabotage" means thatonlypermanent residents, using Canadian registered andeither Canadian-built
ordutypaidtrucks orbuses, mayprovide truck orbusservices between points intheterritory ofCanada.
2. "Container station anddepot services "means activities instoring containers, whether inportareas orinland, withaview totheir
stuffing/stripping, repairing, andmaking them available forshipments.
3. "Crew Members" and"Replacement Crew Members" means persons, including theMaster, whoareemployed onavessel toperform duties
during avoyage ortriprelated totheoperations ofthevessel ortheprovision ofservices topassengers ormembers ofthecrew except:
persons onboard thevessel forapurpose other thanthatofperforming duties thatrelate totheoperation ofthevessel andwhoare
notnormally onboard thevessel butwho,pursuant toaservice contract withatransportation company, perform maintenance orrepairs
while thevessel isinCanada orduring thevoyage;S/NGMTS/W/8
Page14anyperson whoisonboard thevessel forapurpose other thanthatofperforming duties thatrelate totheoperation ofthevessel
ortheprovision ofservices topassengers ormembers ofthecrew.
4. "Custom clearance services" means activities incarrying outonbehalf ofanother party customs formalities concerning import, export or
through transport ofcargoes, irrespective ofwhether thisservice isthemain orsecondary activity oftheservice provider.
5. "Marine Surveyors" means persons entering Canada toinspect thecondition of,including damage to,avessel oravessel 'scargo.
6. "Maritime agency services" means activities inrepresenting, within agiven geographic area,thebusiness interests ofoneormore shipping
linesorshipping companies, forthefollowing purposes:
- marketing andsalesofmaritime transport andrelated services, fromquotation toinvoicing, andissuance ofbillsoflading onbehalf
ofthecompanies; acquisition andresale ofthenecessary related services, preparation ofdocumentation, andprovision ofbusiness
information;
- acting onbehalf ofthecompanies organising thecalloftheshiportaking control ofcargoes when required.
7. "Maritime cargo handling services" means thework performed bystevedore companies orpublic terminal operators, butnotincluding the
work performed bydocklabour, when thisworkforce isorganised independently ofthestevedoring orpublic terminal operator companies.
Thework activities covered include theperformance, organization andsupervision of:
- theloading/discharging ofcargo to/from aship;
- thelashing/unlashing ofcargo;
- thereception/delivery andsafekeeping ofcargoes before shipment orafterdischarge.
8. "Maritime freight forwarding services" means theactivity oforganising andmonitoring shipments onbehalf ofshippers, through providing
suchservices asthearranging oftransport andrelated services, consolidation andpacking ofcargo, preparation ofdocumentation andprovision
ofbusiness information.
9. "Multimodal transport operator" means theperson whoissues orcauses tobeissued thebilloflading, multimodal transport document,
oranyother document evidencing acontract ofmultimodal carriage ofgoods, orwhoisissued andwhoisresponsible forthecarriage of
goods pursuant tothecontract ofcarriage.
10. "Port Captains" means persons entering Canada astheagents ofashipoperator orowner forthepurpose ofassessing requirements, negotiating
andauthorizing expenditures necessary tothemaintenance andoperation ofavessel aswellasthehandling ofitscargo.S/NGMTS/W/8
Page15CLARIFICATION OFOFFER ONMARITIME TRANSPORT
Forgreater certainty andsubject totherelevant reservation intheCanadian Schedule:
International maritime transport services suppliers ofother Members shallhavetheability toprovide locally allactivities which arerelated tothesupply to
theircustomers ofatransport service, within which themaritime transport constitutes asubstantial element.
These activities include, butarenotlimited to:
(a) marketing andsalesofmaritime transport andrelated services through direct contact withcustomers, fromquotation toinvoicing, theseservices
being those operated oroffered bytheservice supplier itself orbyservice suppliers withwhich theservice seller hasestablished standing
business arrangements;
(b) arrangements, ontheirownaccount oronbehalf oftheircustomers (andtheresale totheircustomers) foranytransport andrelated services,
including anchorage, berthandberthing services, inward transport services byanymode, particularly inland waterways, roadandrail,necessary
forthesupply oftheintegrated service;
(c) thepreparation ofdocumentation including transport documents, customs documents, orother documents related totheorigin andcharacter
ofgoods transported;
(d) theprovision ofbusiness information byanymeans, including computerised information systems andelectronic datainterchange (subject
totheprovisions oftheannex ontelecommunications);
(e) thesetting upofanybusiness arrangements (including participation inthestock ofacompany) andtheappointment ofpersonnel recruited
locally (or,inthecaseofforeign personnel, subject tothehorizontal commitment onmovement ofpersonnel) withanylocally established
shipping agency.
(f) acting onbehalf ofthecompanies, organising anyaspect ofthecallofthevessel ortaking control overcargoes when required;
(g) theprovision ofportcaptain services.