Marine spark-ignition engine regulations technical guidance: chapter 12

12 Special Cases of Marine Spark-Ignition Engines, Vessels and Off-Road Recreational Vehicles

• 12.1 Engines, vessels or vehicles imported into Canada solely for purposes of exhibition, demonstration, evaluation or testing
• 12.2 Engines, vessels or vehicles in transit through Canada, from a place outside Canada to another place outside Canada
• 12.3 Engine, vessel or vehicle imported exclusively for use by a visitor to Canada
• 12.4 Incomplete engine, vessel or vehicle
• 12.5 Replacement engine
• 12.6 Engine, vessel or vehicle for which the Governor in Council has granted an exemption

12.1 Engines, vessels or vehicles imported into Canada solely for purposes of exhibition, demonstration, evaluation or testing

Under paragraph 155(1)(a) of CEPA 1999, an engine, vessel or vehicle imported into Canada solely for purposes of exhibition, demonstration, evaluation or testing does not have to comply with the requirements of the Regulations if a declaration signed by the person importing the engine, vessel or vehicle, or their duly authorized representative, is submitted to the Minister prior to importation. The declaration must indicate that the engine, vessel or vehicle will be used in Canada solely for purposes of exhibition, demonstration, evaluation or testing and will remain in Canada not longer than one year or any other period that the Minister specifies.

Subsection 38(1) of the Regulations specifies that the declaration must contain the following:

• the information described in paragraphs 37(1)(a) to (c) and subparagraph 37(1)(d)(i) of the Regulations:
  • the importer's name and civic address and, if different, their mailing address;
  • the manufacturer's name, the number of engines, vessels or vehicles being imported, and the applicable make, model, model year and class of each of those engines, vessels and vehicles;
  • the day on which the engine, vessel or vehicle is expected to be imported; and
  • the business number assigned to the importer by the Minister of National Revenue.
• the identification number, if any, of the engine, vessel or vehicle;
• a statement that the engine, vessel or vehicle will be used in Canada solely for purposes of exhibition, demonstration, evaluation or testing; and
• the date on which the engine, vessel or vehicle will be removed from Canada or destroyed.

Subsection 38(2) states that a company whose world production of engines, vessels and vehicles, combined, is at least 2500 per year has the option of submitting its declaration quarterly.

The time restriction of one year applies for both types of declarations (i.e., declaring before importation or quarterly declarations). Also for both types of declarations, the company must apply in writing to the Minister if it would like to obtain an acknowledgement from the Minister specifying a different period of time that the engine, vessel or vehicle can remain in Canada.

Companies are encouraged to contact VehicleandEngineInfo@ec.gc.ca if they are planning to import into Canada an engine, vessel or vehicle solely for purposes of exhibition, demonstration, evaluation or testing.

12.2 Engines, vessels or vehicles in transit through Canada, from a place outside Canada to another place outside Canada

Under paragraph 155(1)(b) of CEPA 1999, an engine, vessel or vehicle in transit through Canada, from a place outside Canada to another place outside Canada, does not have to comply with the requirements of the Regulations, if it is accompanied by written evidence establishing that the engine, vessel or vehicle will not be sold or used in Canada.

12.3 Engine, vessel or vehicle imported exclusively for use by a visitor to Canada

Under paragraph 155(1)(c) of CEPA 1999, an engine, vessel or vehicle imported exclusively for use by a visitor to Canada or by a person passing through Canada to another country does not have to meet the requirements of the Regulations.

12.4 Incomplete engine, vessel or vehicle

Under section 39 of the Regulations and subsection 153(2) of CEPA 1999, an incomplete engine or vehicle can be imported by a company when a declaration is submitted to the Minister prior to importation. The declaration must be signed by a duly authorized representative of the company and must contain the following:

• the information described in paragraphs 37(1)(a) to (c) and subparagraph 37(1)(d)(i) of the Regulations:
  • the importer's name and civic address and, if different, their mailing address;
  • the manufacturer's name, the number of engines, vessels or vehicles being imported, and the applicable make, model, model year and class of each of those engines, vessels and vehicles;
  • the day on which the engine, vessel or vehicle is expected to be imported; and
  • the business number assigned to the importer by the Minister of National Revenue.
• a statement from the manufacturer of the engine, vessel or vehicle that that when the engine, or the main assembly of the vessel or the vehicle, is completed in accordance with instructions provided by the manufacturer, the engine, vessel or vehicle will conform to the standards prescribed under these Regulations; and
• a statement from the company that the engine, vessel or vehicle will be completed in accordance with the manufacturer's instructions.

12.5 Replacement engine

Under section 18 of the Regulations, a replacement engine is an engine manufactured exclusively to replace an engine used to propel a vessel if no current model year engine exists that has the characteristics necessary for the propulsion of the vessel. A replacement engine may conform to the standards specified in subsection 18(2) of the Regulations, which are different from those prescribed in sections 13 to 17 of the Regulations.

The company must affix a label to a replacement engine. Under subsection 18(3) of the Regulations, this label must meet the following:

• requirements set out for a label under subsections 7(3) and (4), and indicate, in both official languages, that the engine is a replacement engine; or
• requirements set out in CFR 1068.240(b)(6).

12.6 Engine, vessel or vehicle for which the Governor in Council has granted an exemption

A company may apply to the Governor in Council to be granted an exemption from any standard prescribed under the Regulations. Under section 156 of CEPA 1999, an exemption from any prescribed standard may be granted only if, in the opinion of the Governor in Council, compliance with that standard would:

• create substantial financial hardship for the company;
• impede the development of new features for safety, emission monitoring or emission control that are equivalent or superior to those that conform to prescribed standards; or
• impede the development of new kinds of vehicles, engines, or vehicle or engine systems or components.

An exemption may not be granted for a model of engine, vessel or vehicle if the exemption would substantially diminish the control of emissions from the engine, vessel or vehicle, or if the company applying for the exemption has not provided evidence that it has attempted in good faith to bring the model into conformity with all applicable prescribed standards.

Under subsection 156(4) of CEPA 1999, an exemption for financial hardship may not be granted:

• if the world production of engines, vessels or vehicles manufactured by the company, or by the manufacturer of the model that is the subject of the application for exemption, exceeded 10 000 engines, vessels or vehicles in the 12-month period beginning two years before the beginning of the exemption period; or
• if the total number of engines, vessels or vehicles manufactured for, or imported into, the Canadian market by the company exceeded 1000 in that 12-month period.

The following information from section 41 of the Regulations is to be provided by the company to the Minister, before the manufacture or importation of the engine, vessel or vehicle, when applying for an exemption:

• the company name and civic address and, if different, its mailing address;
• the province or country under the laws of which the company is established;
• the section number, title and text of the standards from which an exemption is sought;
• the duration requested for the exemption;
• the estimated number of engines, vessels or vehicles for which the exemption is sought, and an estimate of the changes in the level of emissions if the exemption is granted;
• the grounds (based on any of paragraphs 156(1)(a) to (c)) for the application, including technical and financial information that supports, in detail, those grounds;
• if the grounds for the application are substantial financial hardship:
  • (i) the world production of engines, vessels or vehicles manufactured by the company, or by the manufacturer of the model of the engine, vessel or vehicle that is the subject of the application, in the 12-month period that begins two years before the beginning of the exemption period that is requested, and
  • (ii) the number of engines, vessels or vehicles manufactured for, or imported into, the Canadian market by the company in that 12-month period;
• if the company is requesting that information submitted be treated as confidential under section 313 of CEPA 1999, the reasons for the request.

Section 42 specifies that the label to be applied to an engine, vessel or vehicle for which an exemption has been granted must meet the requirements for labels set out in subsections 7(3) and (4) of the Regulations. The label also must state, in both official languages, the standard for which the exemption has been granted, and the title and date of the exemption order.