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Currently, the Canadian Coast Guard levies fees for navigation services it provides to commercial shipping in Canadian waters. These services include aids to navigation and Vessel Traffic Services. With specific regard to the Arctic, the Marine Navigation Services Fee does not apply to vessels operating exclusively in Canadian waters north of 60° North latitude, or between locations defined as remote ports via the Income Tax Act (i.e.: Places in Prescribed Zones). However, the Marine Navigation Services Fee does apply to ships trading between non-remote ports south of 60° North latitude and those defined as remote or those northern ports located north of 60° North latitude. For example, the fee would not apply to vessels transiting from Iqaluit to Pangnirtung but would apply to transits from Montreal to Iqaluit. It is this south of sixty to north of sixty trade that is at the centre of the review. At this time, the Coast Guard estimates that the total Marine Navigation Services Fees applied to all cargo conveyed by marine transportation destined for Nunavut to be approximately $170,000 annually.
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