Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[The Company]
[Address]
Case Number: 9000357
Business Number: [#]
Attention: [Client]
Date: April 17, 2025
Dear [Client]:
Subject: EXCISE INTERPRETATION
Interpretation of “Journey” under the Greenhouse Gas Pollution Pricing Act as it applies to the business activities conducted by [The company] on the […]coast of Canada.
Thank you for your correspondence requesting an interpretation of “journey” under the Greenhouse Gas Pollution Pricing Act (GGPPA) as it applies to the business activities conducted by [The company] on the […] coast of Canada.
All legislative references are to the GGPPA and the regulations therein, unless otherwise specified.
Our understanding of the facts from your correspondence is as follows:
- [The Company] is a registered specified marine carrier under the GGPPA.
- [The company’s] business activity on the […] coast of Canada involves loading [product] from [a facility] located in [a place] [outside a listed province] and transporting the [product] to a facility at […], located in the town of [a place], [in a listed province].
- While in transit to […], vessels may dock at “waiting areas” until the loading/offloading [facilities] are able to receive the vessel. Limited port infrastructure, i.e. berths or quaysides, suitable for the vessels at either [facilities] necessitate docking along the transit route. Wait times range from one day to one week.
- “Waiting areas” are [place 1] and [place 2] in [listed province]. [place 1] being the favoured primary “waiting area” due to its location, allowing for minimum deviation from the transit route.
- While anchored at [place 1]the vessel may:
a. Complete required ship maintenance that cannot be performed while the vessel is in operation.
b. Crew change – crew work rotation that requires a crew change for half of the crew every 2-3 weeks.
c. Taking on additional provisions for the crew and/or spare parts for the vessel.
- The above noted actions do not occur every time the vessel is docked at [place 1], but only when required.
- An added benefit to anchoring at “waiting areas” is the reduction of fuel usage and the resulting emissions as the main engine used when sailing can be shut down.
Interpretation Requested
You would like clarification regarding the interpretation of “journey” under the GGPPA as it applies to the business activities conducted by [The company} on the […] coast of Canada.
Interpretation Given
Section 3 of the GGPPA defines “journey” as follows:
The transportation of individuals or goods by aircraft or vessel from a particular location to another location where the aircraft or vessel is next stopped if any of the following activities occurs at the particular location and if any of the following activities occurs at the other location:
- (a) individuals embark or disembark the aircraft or vessel;
- (b) goods are loaded onto or removed from the aircraft or vessel; or
- (c) the aircraft or vessel is stopped to allow for its servicing or refuelling or for emergency or safety purposes.
We interpret the above definition of “journey” to mean if a vessel anchors, docks, or stops to carry out any of the activities listed in the definition of a “journey” the stoppage will constitute a journey.
In addition, section 3 of the GGPPA further classifies “journey” as either a “covered marine journey” or as an “excluded marine journey”. This classification outlines the conditions that either subject the journey to fuel charge or not. A covered marine journey is where a journey begins and concludes in the same listed province. This condition subjects a covered marine journey to fuel charge, with the charge calculated accordingly under the net fuel quantity calculation for a specified marine carrier under section 28. An excluded marine journey is one that begins or ends in a listed province other than covered marine journey and is not subject to the fuel charge.
In specifically addressing [the company’s] business activities on the […] coast of Canada, as relayed in your request for an interpretation letter, we understand that the stoppages at the waiting areas of [place 1] and [place 2] in [listed provinces] are not specifically for the purpose of carrying out any of the activities listed in the definition of a “journey”, but are incidental to [the company’s] marine operations i.e. to schedule the vessels’ arrival times to coincide with the accessibility of loading/offloading [facilitiy] at [a place] [outside a listed province] and the facility at [a place] [in a listed province].
To be considered incidental to marine operations, the ensuing activity would generally occur as a result of something outside the person’s control, such as a delay or interruption at the vessel’s intended destination and would normally play a minor role in relation to the provision of the particular journey. Whether or not a particular activity is incidental to a person’s marine operations is a question of fact. Should the actual purpose of the stoppage be one of the activities listed in the definition of a “journey”, the stoppage would constitute a “journey” and being that it begins and concludes in the same listed province it would then be a “covered journey” subject to fuel charge.
It should also be noted that some activities, such as using fuel during the hotelling of a vessel in a listed province, when not part of a marine journey would be considered as use and must be included in element A of the net fuel quantity calculation of a registered specified marine carrier under section 28.
As to the request for waiver of late filing penalties, an application using form RC4288 Request for Taxpayer Relief – Cancel or Waive Penalties and Interest, available on our website www.Canada.ca, may be made citing the reasons for relief.
The interpretations given in this letter, including any additional information, is not a ruling and does not bind the Canada Revenue Agency (CRA) with respect to a particular situation. Future changes to the Act, regulations, or the CRA’s interpretative policy could affect the interpretations or the additional information provided herein. For further information see the publication “Requesting an Excise and Specialty Tax Ruling or Interpretation”.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 403-835-5431.
Yours truly,
Salim Karmali
Technical Policy Advisor, Fuel Charge Unit
Excise and Fuel Charge Division
Excise and Specialty Taxes Directorate
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