Maritime transactions in British Columbia By Catherine A. Hofmann, a Vancouver Lawyer with Bernard LLP
T
here is no question that 2020 has fulfilled the blessing (or is it a curse?) that we should live in “interesting times”. Interesting times also seem to make for more complicated times and as maritime transactions become increasingly complex, the business, financial, tax and
Catherine Hofmann
Before buying any previously owned vessel, it is essential to conduct due diligence searches to ensure that there are no recorded or other liens over the vessel. Traditional maritime liens, possessory liens and statutory liens, including vessel mortgages, can all impact a seller’s ability to deliver title to the vessel free and clear of all
regulatory issues can become tricky to navigate. To
encumbrances. Unfortunately, of these various kinds of
cover all of these matters here would make for laborious
liens, only statutory vessel mortgages are required or
reading; however, it is useful to review some of the critical
able to be registered in the Transport Canada Vessel
issues faced in most vessel purchase transactions.
Registry. Consequently, we recommend the following due diligence searches: ships registry, Bank Act, BC Personal Property Registry, court registries, bailiff, bankruptcy and Fisheries and Oceans Canada. A potential buyer should also make enquiries of the seller regarding all repair and maintenance work carried out on the vessel, including where the work was conducted, and copies of all invoices and receipts for the work done as well as any crew or insurance claims which may have been levied against the vessel. Due diligence searches are often more difficult to conduct if the vessel is flagged in a foreign jurisdiction and additional time and money should be allotted for all
ASSISTING THE MARINE TRANSPORTATION, FISHING AND RECREATIONAL BOATING INDUSTRIES WITH COMMERCIAL, CORPORATE AND LITIGATION MATTERS ON CANADA’S WEST COAST AND THE CANADIAN ARCTIC. W. Gary Wharton David K. Jones Jason Hicks Glen Krueger Ryan Bernard
Peter Swanson Catherine A. Hofmann Tom Beasley Jakub Vodsedalek Jeffrey Wu
ASSOCIATE COUNSEL:
Lorna Pawluk, Q.C.
Thomas S. Hawkins David S. Jarrett Connie Risi Harry Ormiston
such investigations. If the vessel to be purchased is in fact foreign flagged, special consideration should be given to any taxes and duties, which may be owing upon its importation into Canada. The amount of any customs duties payable upon importation depend on the tariff classification of the vessel and its country of original construction, not on the country where it is currently registered. In order to benefit from any preferential tariff treatment available under Canada’s various trade treaties, a certificate of origin for the vessel
24/7 EMERGENCY RESPONSE: 604.681.1700 or shipping@bernardllp.ca TEL: 604.681.1700 WEB: www.bernardllp.ca EMAIL: (lawyer’s last name)@bernardllp.ca
ADDRESS: 1500–570 Granville St., Vancouver, BC, Canada, V6C 3P1
must be presented at the time of importation. Therefore, it will be critical to ensure that this document is provided by the seller at closing, along with an original (notarized) bill of sale and a certificate of deletion from its current foreign
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B.C. Tugboat 2021
