Commercial fisheries licensing policy for Eastern Canada

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Chapter 1 - Presentation

1. Introduction

Licensing policies for the marine fisheries of Eastern Canada take into account the fact that for the most part, the fishing industry is located in areas of scarce alternative employment opportunities, and that completely unregulated entry to the fishery usually leads to over capitalization, elimination of net returns and resource depletion. Added to this background is a situation where, in most fisheries throughout the Atlantic, excess fishing capacity exists. Furthermore, the resource and the social and economic forces in play vary tremendously from area to area.

The Licensing Policy is an integral part of a number of federal government initiatives to restructure the commercial fisheries and lay the foundation for a fishery that is environmentally sustainable and economically viable. The objectives of the Licensing Policy are to reduce capacity, improve the economic viability of participants in commercial fishing operations, and prevent future growth of capacity in the commercial fishery. The Licensing Policy reform along with other fisheries renewal initiatives brings about fundamental changes to the way we do business in fisheries, and in the Department's relationship with the fishing industry. The industry will be given more responsibility in the decisions regarding the fisheries and will become a partner and true steward of the resource.

The Department of Fisheries and Oceans (DFO)'s approach to licensing favours limiting access to the fishery as much as is necessary to provide for an orderly harvesting of the fishery resource, to promote viable and profitable operations for the average participant and, finally, to adopt policies which are consistent where consistency is desirable and practical, while at the same time recognizing that specific measures may be necessary for certain fisheries and geographical locations of Eastern Canada.

2. Purpose of policy document

This policy document has been prepared to provide fishers, corporations, Indigenous organizations, and other interested Canadians with a clear and consistent statement of the DFO's policy respecting the registration of commercial fishing enterprises and vessels, and the issuance of fishing licences in Eastern Canada. This document also provides objectives against which the appropriateness and effectiveness of policies are to be evaluated.

3. Legislative background

The Constitution Act, 1867 provides the Parliament of Canada, on behalf of the Canadian public, the legislative responsibility for Canada's seacoast and inland fisheries. As a result, the federal government has constitutional authority for all fisheries in Canada. Canada directly manages fisheries in the Atlantic provinces of Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island; the marine and anadromous salmon fisheries of British Columbia; the marine fisheries of Quebec; and the fisheries of the Yukon, the Northwest Territories, and Nunavut.

Between 1899 and 1930 intergovernmental negotiations lead to a series of agreements whereby the federal government authorized the provinces to oversee day-to-day management of all fisheries in the provinces of Ontario, Manitoba, Saskatchewan and Alberta, and for some fisheries in the provinces of Quebec (where the province manages freshwater and anadromous and catadromous fisheries), and British Columbia (where the province manages freshwater species, except salmon). In these six provinces, or areas thereof, federal fisheries are administered by the provincial governments as promulgated by federal regulations made under the Fisheries Act.

In 2019, the Fisheries Act was amended to, among other things, enhance and modernize the Act. The Fisheries Act now contains a list of considerations that may be taken into account by the Minister for decision-making. Among the listed considerations are social, economic and cultural factors in the management of fisheries, as well as the preservation or promotion of the independence of licence holders in commercial inshore fisheries in Atlantic Canada and Quebec. In addition, clearer authorities to make regulations regarding the use and control of the rights and privileges under a fishing licence were introduced.

As of April 1, 2021, several of Fisheries and Oceans Canada's key inshore licensing policies are enshrined in regulations, specifically, elements of the Fleet Separation and Owner-Operator Policies, and the Issuing Licences to Companies Policy. These regulatory amendments to the Atlantic Fishery Regulations, 1985 (AFR) and the Maritime Provinces Fishery Regulations (MPFR) also enacted a new regulatory licensing eligibility criteria that provides that licence holders who have transferred the use and control of the rights or privileges conferred by a licence to fish are ineligible to further be issued such fishing licence. Specific exceptions exist to this general rule. These amendments clarify the rules governing inshore and coastal fishing licences.

4. Indigenous access

Special consideration is given to Indigenous individuals or organizations for access to commercial fisheries for economic development purposes. In this context, the policy provides for exemption from eligibility criteria respecting the issuance of replacement licences as discussed in section 16. This policy is to be interpreted in conjunction with DFO's Aboriginal Fisheries Strategy.

5. What is a licence?

A. General

A "licence" grants permission to do something which, without such permission, would be prohibited. As such, a licence confers no property or other rights which can be legally sold, bartered or bequeathed. Essentially, it is a privilege to do something, subject to the terms and conditions of the licence.

B. Fishing licence

A "fishing licence" is an instrument by which the Minister of Fisheries and Oceans, pursuant to their discretionary authority under the Fisheries Act, grants permission to a person, including an Indigenous organization, to harvest certain species of fish or marine plants subject to the conditions attached to the licence. This is in no sense a permanent permission; it terminates upon expiry of the licence. The licensee is essentially given a limited fishing privilege rather than any kind of absolute or permanent "right or property".

C. Future commitment

As provided under the Fishery (General) Regulations, the issuance of a document of any type to any person does not imply or confer any future right or privilege for that person to be issued a document of the same type or any other type upon expiry of the document.

6. Licensing principles

The "Commercial Fisheries Licensing Policy for Eastern Canada" is built on the following principles:

1. Be consistent with DFO's core mandate following the program review exercise.
2. Achieve a balance between capacity and the resource,
3. Encourage environmentally sustainable harvesting,
4. Foster greater economic viability of the fishery sector,
5. Facilitate industry self-reliance,
6. Develop a greater degree of partnership with a professional group of harvesters,
7. Streamline administration of licensing.

7. Licensing parameters

The licensing parameters which have guided the development of the "Commercial Fisheries Licensing Policy for Eastern Canada" are:

1. Adjacency to the resource recognized as a priority factor for the issuance of new regular/exploratory licences and for the issuance of replacement licences,
2. Regional specificities of fisheries recognized and accommodated,
3. Continuous reduction in capacity promoted through self-rationalization programs,
4. Geographic distribution of economic opportunities maintained,
5. Specific rules for all fishers in Northern Areas provided for,
6. Withdrawal of licence privileges recognized as a valid means of ensuring compliance with regulations and management plans.

Chapter 2 - General policy framework

8. Application of policy

This policy applies to the registration of fishers, fishing enterprises, the registration of fishing vessels, and the issuance of fishing licences to engage in commercial fishing in Canadian fisheries waters on the Atlantic Ocean and the NAFO Convention Area. This policy also applies to commercial freshwater fisheries in the provinces of Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island. It does not apply to commercial freshwater fisheries in the province of Quebec or to commercial fishing for anadromous or catadromous fish within the tidal waters of Quebec.

This policy does not apply to licences issued under the Aboriginal Communal Fishing Licences Regulations.

9. Terminology

Unless defined below, expressions in this document have the same meanings as those found in the Fisheries Act, the Coastal Fisheries Protection Act, and the regulations made under those acts.

1. Access: means the opportunity to harvest or use fisheries resources, generally permitted by licences or leases issued by the Minister.
2. Allocation: means the amount or share of the fisheries resource or allowable catch and/or effort that is distributed or assigned to those permitted to harvest the resource.
3. Area of Historical Fishing: refers to a fishing area where a fisher has participated in fisheries during a period of no less than 24 months.
4. Authorized Overlap: refers to those specific areas beyond home sectors where fishers restricted to using groundfish vessels less than 19.8m (65') LOA are permitted to continue fishing as a result of their home port being located in the extremities of their sector in 1981 specifically:
   

   	Home Port Division	Authorized Overlap
   i	4T	4Vn
   ii	4Vn	4T
   iii	3Pn	3Ps
   iv	3Ps	3Pn
   v	4RS	2J
   vi	2J	4RS

5. Buddy-up: means an arrangement authorized by DFO between two or more licence holders holding valid fishing licences for the same species, the same fishing area and the same gear type operating from the same vessel. This only exists in the Quebec and Newfoundland and Labrador Regions.
6. Certification board: means a provincial body established to conduct professional accreditation or certification of fishers.
7. DFO administrative areas: means those portions of a DFO Region established for the purpose of administering departmental programs, except in the Maritimes Region where the entire Region is a single DFO Administrative Area.
   • In the Quebec Region the three administrative areas are:
     • North Shore (NS)
     • Gaspe-Lower St. Lawrence (GLST) and
     • Magdalen Islands (MI)
   • In the Gulf Region, the three DFO administrative areas are:
     • Eastern New Brunswick (ENB)
     • Gulf Nova Scotia (GNS) and
     • Prince Edward Island (PEI)
   • In the Newfoundland and Labrador Region, the administrative areas are divided in relation to the North Atlantic Fisheries Organization (NAFO) subdivisions 2GHJ, 3K, 3L, 3Ps 3Pn and 4R they are adjacent to:
     • Area 1, Eastern and Southern Area manages domestic fisheries in NAFO subdivisions 3K, 3L;
     • Area 2, Western Area manage domestic fisheries in NAFO subdivisions 4R and 3Ps, 3Pn; and
     • Area 3, Labrador Area manages domestic fisheries in NAFO subdivisions 2GHJ.
8. DFO Regions are delimited as such:
   • Gulf Region: The northern coast of New Brunswick and Nova Scotia, from the New-Brunswick-Quebec border and extending to the northern tip of Cape Breton, and including Prince Edward Island.
   • Maritimes Region: The coast from the northern tip of Cape Breton to the New Brunswick – Maine border, and including the Bay of Fundy.
   • Newfoundland and Labrador Region: the boundaries of the Province of Newfoundland and Labrador.
   • Quebec Region: the boundaries of the Province of Quebec, including the Magdalen Islands.
9. Designated operator status: an exception, based on historic practices and policies, which exempts certain licence holders in the Maritimes Region from the requirement to fish the licence personally.
10. Eastern Canada: means the provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Quebec, the waters of Ungava Bay, the waters of Hudson Strait lying east of 70°00′ west longitude, and encompasses the DFO Regions.
11. Enterprise:
    • Core enterprise means:
      1. a fishing unit composed of a licence holder (head of the enterprise), registered vessel(s) and licences issued in their name, and was designated as such by DFO in 1996 according to specific criteria; or
      2. a fishing unit composed of a licence holder (head of the enterprise), registered vessel(s) and licences which were previously issued to a Head of a Core Enterprise and which were reissued to the current licence holder, or a new entrant.
    • Head of Enterprise: means the individual who has been issued the licence and is in charge of the fishing enterprise.
    • Head of a non-core enterprise: means the person who has been issued the licence and is in charge of a fishing enterprise that was not designated as a core enterprise by DFO in 1996, or who was reissued licences after 1996 but who were not head of a "Core Enterprise".
12. Exempted fleet: means a fleet to which the Minister has granted an exemption from the inshore policies. Only Maritimes Region has exempted fleets, they are listed in subparagraphs 18(a)(i) to (xii) of the AFR. Part III of the AFR does not apply to these fleets.
13. Family member: for the purposes of the inshore regulations, is defined in subsection 17.2(1) of the AFR and 29.01(1) of the MPFR. It has the same meaning as the definition of related persons in subsection 251(2) of the Income Tax Act which refers to individuals connected by blood relationships or adoption (i.e. parents and grandparents, siblings, children and grandchildren), and marriage (i.e. spouse or common-law partner and individuals connected to them by blood relationships or adoption).
    • For the purpose of the regulations and this policy, other members of a person's extended family, such as nieces, nephews, aunts, uncles and cousins, are not considered to be a "family member".
14. Fishing sectors:
    • Coastal: refers to the fishing sector where fish or marine plants are found close to shore and vessels may or may not be required. This sector was previously referred to as non-vessel based. The Coastal sector only exists in Maritimes and Gulf Regions.
    • Inshore: means the fishing sector where fishers are restricted to using vessels less than 19.8m (65') length over all (LOA).
    • Midshore: means the fishing sector where licence holders are permitted to use vessels 19.8m (65') and greater but less than up to 30.5m (100') LOA.
    • Offshore: refers to the fishing sector where licence holders are permitted to use vessels 30.5m (100') LOA or greater.
15. Grandfather clause: Where, based on historic practices and policies, an exemption to policy has been granted to an individual licence holder and that exemption remains in place until the licence is reissued to another person.
16. Historic overlap privilege: refers to those specific areas beyond home sectors where inshore fishers are permitted to continue fishing for groundfish as a result of participation for a two year period during the years 1978-1980. (This qualifying period was extended to the years 1980 and 1981 when it could be shown that commitments had been made to have a vessel replaced prior to 1980).
17. Home port: means the port identified by, or assigned to, the fisher upon registration. As provided for in this policy, may constitute an eligibility criteria in the issuance of some licences.
18. Indigenous organization: has the same meaning as in the Aboriginal Communal Fishing Licences Regulations.
19. Individual quota: refers to an amount of fish from a specific stock that is allocated to a particular licence holder through a condition of the licence.
20. Independent core licence holder means:
    • An individual who, on April 1, 2021, was identified as an Independent Core licence holder; or
    • An eligible fisher which has been issued the last key inshore licence(s) (or pre-1979 and/or inshore licence(s) in the case of Maritimes Region) that were previously issued to an Independent Core licence holder.
21. Inshore licence: means a licence issued to fish a species in the fishing sector where licence holders are restricted to using vessels less than 19.8m (65') length over all (LOA), unless otherwise specified in the Regional policies.
22. Inshore Regulations: means Part III of the Atlantic Fishery Regulations, 1985 (AFR) and Part I.1 of the Maritime Provinces Fishery Regulations (MPFR).
23. Key licences: means those licences specified in Annex I.
24. Length overall (LOA): means the horizontal distance measured between perpendiculars erected at the extreme ends of the outside of the main hull of a vessel. Transom platforms extending beyond the stern of a vessel for the purposes of this policy will be considered part of the main hull of a vessel.
25. Licence split: refers to the case where more than one licence is held by the same person and that person wishes to either (a) use a separate vessel or separate vessels for one or each of these licences or (b) relinquish one of the licences and request that a replacement licence be issued to another person.
26. Licensing authority: The Minister of Fisheries and Oceans.
27. Limited entry: refers to the mechanism DFO uses to control the number of licence holders participating in a fishery. A limited entry fishery has entry requirements or criteria established in order to qualify for participation in the fishery.
28. Minister: means the Minister of Fisheries and Oceans.
29. New entrant: means a fisher who holds no licence for a specific fishing sector.
30. Organization that has been issued an allocation of fish to catch for the benefit of its membership: means a community-based fishing organization, such as a fishers' association, a fleet planning board, or a community management board. These organizations do not fish the allocation themselves, but rather distribute the allocation to members of their organization. Under paragraph 19(1)(c) of the AFR and paragraph 29.2(1)(c) of the MPFR, those organizations as eligible to be issued an inshore or coastal fishing licence.
31. Partnership: in relation to section 11.9 in this policy, means an arrangement recognized by DFO between two fishers each holding similar licences for the same species and operating from the same vessel.
32. Person: means, unless otherwise stated, for the purpose of this policy an individual, a corporation or an Indigenous organization.
33. Pre-1979 company: means a company to which the Minister has granted an exemption (grandfather) from the inshore policies. Pre-1979 companies are listed in Annex VII.
34. Pre-1989 company: means a company to which the Minister has granted an exemption (grandfather) from the requirement to issue inshore licence to individuals or wholly-owned companies. Pre-1989 companies only exist in the Maritimes Region and are listed in Annex VII.
35. Relinquishment: means the process through which a licence holder agrees, in writing, to relinquish the licence issued in their name or their enterprise. Those who participate in a relinquishment program forego their eligibility to be issued the same type of licence in the future.
36. Residence: means a person's fixed permanent address to which they maintain residential ties (their main residence), distinguished from a place of temporary residence such as a summer home or a temporary residence for work or school. Residential ties include, but are not limited to, the individual's dwelling, spouse or common-law partner, and dependents. For more details please refer to Regional policies.
37. Resident: in respect of a licence, means a person who has continuously had their main place of residence in a defined area for a period of no less than six months immediately preceding the time that residence becomes relevant for the purpose of licensing, except for NAFO Division 2J, where the requirement is a period of no less than three (3) years.
    • For more details please refer to Regional policies.
38. Substitute-operator: means a person authorized by DFO, in accordance with subsection 23(2) of the Fishery (General) Regulations, to carry out the activity under the licence on behalf of another licence holder.
39. Wholly owned company: means a private company under the laws applicable in Canada, for which all shares are issued to and controlled by one individual (the sole shareholder) identified as an Independent Core licence holder by Fisheries and Oceans Canada.
40. Vessel-based licences: means those licences specified in Annex II.
41. Zone: for the purpose of section 18(3), the following zones have been established in the Scotia Fundy Sector of the Maritimes Region:
    • Zone 1: East of the Halifax/Guysborough County line.
    • Zone 2: Halifax, Lunenburg and Queens Counties.
    • Zone 3: Shelburne County.
    • Zone 4: Yarmouth, Digby, Annapolis, Kings, Hants, Colchester and Cumberland Counties in the Province of Nova Scotia and Westmorland, Albert, Saint John and Charlotte Counties in the Province of New Brunswick

9.1. Use and control of rights and privileges

1. Control: means, including but not limited to, directing, managing, overseeing, restricting, or influencing any of the rights or privileges conferred to an individual or entity under a licence issued in their name (i.e. making decisions related to the licence's use, the catch, or earnings without Departmental authorization).
2. Rights and privileges: means the limited rights and privileges conferred to the licence holder under the licence. These rights and privileges are expected to be used and controlled by the individual or organization that is issued the licence.
   • Rights conferred under the licences are:
     • the right to engage in an exclusive fishery under the conditions imposed by the licence (including decision-making over fishing activities authorized by the licence); and
     • the proprietary right to the fish caught under the licence (including, but not limited to, decision-making over the benefits resulting from their catch)
       
   • Privileges are granted through policy, include but are not limited to, the ability to make requests:
     • for substitute operators,
     • licence renewal,
     • licence reissuance or
     • quota transfers.
   These rights and privileges are temporary and exist only for the term of the licence.
3. Use: means, including but not limited to, carrying out (in person or through a designated or substitute-operator) the activities authorized under the licence or making decisions related to these activities and the results of these activities (catch and earnings).

9.2. Licence classes as established by regulations and the rules applicable to them

1. An inshore Licence held by an Independent Core Licence Holder (ICLH) (except Exempted Fleets in the subparagraph 18(a)(i) to (xii) in the AFR)
   • LH needs to be an individual, their estate or a wholly owned company;
   • LH needs to personally fish the licence; and
   • LH is subject to the new requirement to retain the rights and privileges of the licence.
2. A coastal Licence
   • LH needs to be an individual, their estate or a wholly owned company; and
   • LH needs to personally fish the licence.
3. An inshore licence which mentions "designated operator status" and is held by an ICLH
   • LH needs to be an individual, estate, or a wholly owned company; and
   • LH is subject to the new requirement to retain the rights and privileges of the licence.
4. An inshore licence held by the head of a non-core enterprise
   • LH needs to be an individual or a wholly owned company; and
   • LH needs to personally fish the licence.
5. An inshore licence which mentions "designated operator status" and is held by the head of a non-core enterprise
   • LH needs to be an individual or a wholly owned company.
6. An inshore licence issued to an organization that has been issued an allocation of fish to catch for the benefit of its membership
   • The organization can be issued an inshore licence, but is excepted from the rest of Part III of the AFR and Part I.1 of the MPFR.
7. An inshore licence held by a pre-1989 company in DFO's Maritimes Region
   • The main shareholder of that company needs to personally fish the licence.

Chapter 3 - General policy guidelines

10. Categorization of licence holders

The concept adopted for the inshore sector (vessels less than 19.8m (65') LOA) provides limited access to the fishery for a "core" group of a maximum number of enterprises. The Core assessment process concluded in 1995, and no further assessments for Core status are being undertaken.

The introduction of the Preserving of the Independence of the Inshore Fleet in Canada's Atlantic Fisheries policy created the "Independent Core" category of licence holders as new eligibility criteria for the receipt of new or reissued licences in the inshore sector of Atlantic Canada after April 12, 2007. The Independent Core status could be removed if eligibility criteria were not met.

The regulatory changes to the AFRs and MPFRs, which came into effect on April 1, 2021, have codified the concept of the Independent Core category. This category is now defined as:

1. A fisher who, on April 1, 2021, was identified as an Independent Core based on the fact that they have been issued and continue to be eligible to be issued key inshore licence(s) (or inshore licence(s) in the Maritimes Region)
2. An eligible fisher who has been reissued the last key inshore licences (or pre-1979 and/or inshore licence(s), in the case of Maritimes Region) that were previously held by an Independent Core licence holder;
3. Independent Core is a static categorization and cannot be changed.

11. General policy guidelines

1. The requirements to be licensed to fish for different species of fish are found in the Fisheries Act and the regulations made under the Act.
2. Except where a fishery is closed for conservation purposes, licence renewal and payment of fees is mandatory on a yearly basis in order to retain the privilege to be issued the licence.
3. Subject to any sanction applied against a licence or a licence holder, a licence may only be issued to a person who:
   1. held such a licence for a given species in the preceding calendar year and a replacement licence was not issued for that licence to another person; or
   2. who is issued such a licence as a replacement; or
   3. who obtains a new licence through the procedures outlined in section 21or 22; or
   4. who meets the eligibility criteria set out in Annexes III and/or IV.
4. When a species is deemed to have been over fished, one or more of the following restrictions may be imposed:
   1. restriction on the issuance of replacement licences to other persons,
   2. restriction on the issuance of additional licences,
   3. stricter vessel replacement rules,
   4. a licence moratorium,
   5. non-renewal of licences, or
   6. other appropriate measures.
5. A bait fishing licence may only be issued to the head of an enterprise who holds a licence to fish commercially by a method which traditionally includes the use of bait in such a fishery, (i.e., lobster, crab, groundfish hook and line, tuna, swordfish longline, shark).
6. For fisheries restricted to using vessels less than 19.8m (65') LOA, a licence will be issued in the name of an individual fisher. Where such a licence has previously been issued in the name of a corporation, the licence may continue to be issued in the name of that corporation under a Grandfather clause.
7. Licence holders restricted to using vessels less than 19.8m (65') LOA will be required to fish their licences personally. Licence holders who have previously designated an operator for one or more of their vessels may continue to do so under a Grandfather clause.
8. Licence holders restricted to using vessels less than 19.8m (65') LOA will be permitted to be issued only one licence for a given species. Those licences may be validated for more than one gear type (e.g., otter trawl and gillnet) (Grandfather clause provided for those fishers who already have been issued more than one licence for the same species.). This restriction does not apply to Indigenous organizations.
9. In the Maritimes Region, partnerships in the lobster fishery may be created where both enterprises have been issued category A lobster fishing licences for the same Lobster Fishing Area. Under such a partnership arrangement, the following conditions apply:
   1. Both licence holders must be present on the boat during lobster fishing operations; and
   2. The number of lobster traps permitted to be fished by the partnership cannot be greater than the legal number of traps authorized for one licence in that Lobster Fishing Area plus 50 percent of that number.
10. As provided under the Fishery (General) Regulations, where, because of circumstances beyond their control, the holder of a licence or the operator named in a licence is unable to engage in the activity authorized by the licence or is unable to use the vessel specified in the licence, a fishery officer or other authorized employee of the Department may, on the request of the licence holder or their agent, authorize in writing another person to carry out the activity under the licence or authorize the use of another vessel under the licence.
11. Where the holder of a licence is affected by an illness which prevents them from operating a fishing vessel, upon request and upon provision of acceptable medical documentation to support their request, they may be permitted to designate a substitute operator for the term of the licence. Such designation may not exceed a total period of five years.
12. For the purpose of renewing a licence or for the issuance of a replacement licence to a new licence holder, the eligible licence holder must personally sign any related documents. In the case of an estate, the executor or the legally appointed administrator must sign the documents. As provided under the Fishery (General) Regulations, in the case of corporation-held licences, only an officer of the corporation may sign on behalf of that corporation.
13. Unless provided otherwise in a species management plan, licences will not be issued as replacements for non-renewed licences.
14. In the Maritimes Region, the downgrading of lobster category "A" licences or the upgrading of lobster category "B" licences is not permitted.
15. The splitting of either the gear types (e.g. groundfish longline and otter trawl) or the amount of fishing gear listed on a single vessel-based licence is not permitted.

12. Vessel registration

1. Unless provided otherwise under the Atlantic Fishery Regulations, 1985 and the Maritime Provinces Fishery Regulations and subject to section 33, every vessel used in a commercial fishery must be registered in the name of the licence holder using the vessel or for whom the vessel is being used.
2. A vessel can only be registered in the name of one licence holder at a given time.
3. In the Newfoundland and Labrador Region, a replacement for a vessel registration held by a non-core fisher may only be issued to a core fisher.
4. A vessel may be registered by the Department on application, the payment of the proper fee and the provision of the required data on the vessel characteristics by the applicant, except in the Newfoundland and Labrador Region where no additional vessel registrations are issued.
5. Notwithstanding subsection (4), additional vessel registrations are available in the Newfoundland and Labrador Region, but only to heads of core enterprises who hold licences in addition to groundfish or a groundfish licence which is validated for cod traps. These heads of core enterprises may register "one" additional vessel no longer than 7.6m (25') LOA on a one time basis only, if these fishers are now the registered operators of only one vessel and that the vessel is longer than 7.6 m (25') LOA.
6. Only Canadian vessels may be registered with the Department of Fisheries and Oceans.
7. The licence holder is responsible to ensure that the vessel they intend to operate meets approved vessel replacement rules.
8. A survey or measurement of the vessel may be required from the licence holder at their expense prior to registration.
9. Vessel Registrations may only be issued to persons who hold at least one commercial fishing licence.
10. Registered vessels may be specified as a condition of a licence and registered in a licence holder's name for a minimum period of one (1) month except in the Newfoundland and Labrador Region where the minimum is twelve (12) months.

13. Leasing of a foreign vessel

The following provisions apply to the temporary replacement of Canadian fishing vessels with foreign vessels.

1. This policy applies when Canadian vessels are permanently removed, or rendered unserviceable (e.g., sinking, fire, collision, stranding) for a minimum period of four months within the preceding 12 month period. The chartering of a foreign vessel is not permitted for the purpose of replacing a Canadian vessel which has been removed from the fishery for financial or commercial reasons (e.g. bankruptcy or sheriff's seizure).
2. A maximum period of two years duration (from the date of vessel removal) may be allowed for the lease of a foreign vessel.
3. The leased foreign vessel must be crewed by either Canadian citizens or permanent residents, except where the Minister approves a specified number of non-Canadian crew members.
4. The leased vessel is to be of similar catching capacity and must operate in accordance with the same fishing plan, and the catch must be delivered to the same plant or plants.
5. Freezer trawlers may be leased to replace wetfish trawlers, but the processing (filleting) of traditional groundfish species at sea will not be permitted.
6. All foreign vessels will be required to carry an observer approved by the Department at the expense of the licence holder.
7. The leasing of foreign vessels requires Ministerial approval.

14. Foreign ownership

1. Subject to subsection (2), if foreign interests acquire over 49 percent of the common (voting) shares of a Canadian owned corporation which holds fishing licences, the licences will not be reissued to that corporation upon expiry of the licences.
2. If such a foreign corporation having a subsidiary in Canada which holds fishing licences is taken over by another foreign-owned corporation from the same country, the licences may be reissued to that corporation as part of its continuing Canadian operation (i.e. no net increase in foreign ownership).
3. If a foreign interest purchases a minority ownership interest in a Canadian corporation or establishes a jointly owned subsidiary with a Canadian corporation in which the Canadian corporation owns more than half the voting shares, licence eligibility will not be affected.

15. Key inshore policies

15.1 Fleet Separation Policy

1. One of the objectives of the licensing policy is to separate the harvesting and processing sectors of the industry, particularly in the fisheries where licence holders are restricted to using vessels less than 19.8m (65') LOA. This was known as the Fleet Separation Policy.
2. Under this policy, new fishing licences could not be issued to corporations for fisheries where only vessels less than 19.8m (65') LOA are permitted to be used.
3. Elements of the fleet separation policy are now enshrined as part of the inshore regulations which came into force on April 1, 2021.
   1. As per s.19(1)(b) of the Atlantic Fishery Regulations 1985, and s.29.2(1)(b) of the Maritime Provinces Fishery Regulations, in the fisheries where licence holders are restricted to using vessels less than 19.8m (65') LOA, only corporations whose sole shareholder is an independent core may be issued a licence.
   2. Licences issued to pre-1979 companies continue to be exempted from this eligibility criteria if reissued to another pre-79 company, however, once a pre-1979 company reissues a licence to a non-pre-1979 entity, that licence no longer maintains this exemption. The complete list of corporations eligible to be issued replacement licences under this provision are listed in Annex VII.
   3. When all licences held by a pre-1979 companies are reissued to a qualified new entrant as per section 16, the new licence holder will be classified as independent core.

15.2 Owner-operator policy

1. Elements of the owner-operator policy were enshrined as part of the inshore regulations which came into force on April 1, 2021.
   1. As per s.19 (1) of the Atlantic Fishery Regulations 1985, and s.29.2(1) of the Maritime Provinces Fishery Regulations, for fisheries restricted to using vessels less than 19.8m (65') LOA a licence can only be issued in the name of an individual fisher, their estate, a wholly owned company, or an organization that has been issued an allocation of fish to catch for the benefit of its membership. Where such a licence has previously been issued in the name of a corporation, the licence may continue to be issued in the name of that corporation under a Grandfather clause.
   2. As per s.19(2) of the Atlantic Fishery Regulations 1985, and s.29.2(2)of the Maritime Provinces Fishery Regulations licence holders restricted to using vessels less than 19.8m (65') LOA are required to fish the licences they have been issued personally.
      1. As per s.18(g)(i) of the Atlantic Fishery Regulations 1985, and s.29.2(1)(a) of the Maritime Provinces Fishery Regulations, licences in fisheries restricted to using vessels less than 19.8m (65') LOA, which include "designated operator status" or "exploitant désigné" or an equivalent expression appears on the licence are exempted from this provision.
2. Licence holders restricted to using vessels less than 19.8m (65') LOA will be permitted to be issued only one licence for a given species. Those licences may be validated for more than one gear type (e.g., otter trawl and gillnet) (Grandfather clause provided for those fishers who already have been issued more than one licence for the same species.) This restriction does not apply to Indigenous organizations.

15.3 Issuing licences to companies policy (ILC)

Objectives

The objectives of the ILC policy are to:

1. Promote economic viability, prosperity and wealth generation; and
2. Allow for the licence to be issued to a company as a way to provide an additional choice for licence holders to organize their businesses in the most efficient manner.

Application

1. The ILC policy applies to licences in the inshore and coastal sectors, except those listed in section 16 (11).
2. The ILC policy does not apply to fishing licences issued under the Aboriginal Communal Fishing Licences Regulations.
3. In the Maritimes Region, the ILC policy does not apply to the following licences:
   • Groundfish fixed gear ITQ 45-65'
   • Groundfish mobile gear ITQ <65'
   • Swordfish longline
   • Herring purse seine
   • Full Bay scallop
   • Scotian Shelf shrimp mobile gear ITQ <65'

Criteria

1. Before an eligible inshore or coastal licence may be issued to a wholly-owned company, the following criteria are to be met:
   1. For inshore licences, the sole shareholder of the company must meet the Independent Core eligibility criteria;
   2. The company must provide certification by legal counsel or a registered professional accountant verifying that all voting and non-voting shares of the company are issued to and controlled by the Independent Core fisher or, in the case of licences issued in the coastal sector, the individual coastal licence holder.
   3. The company must file a declaration confirming that the sole shareholder of the company has not transferred the use or control of any of the rights or privileges conferred under the licence, unless authorized as per s.19(5) of the AFRs or s.29.2(5) of the MPFRs.
   4. The company must provide a copy of the Certificate of Incorporation showing the registration number and the official name of the company.
   5. The sole shareholder of the company does not hold shares in another wholly-owned company that has been issued an inshore or coastal licence for that same species or has been issued a licence for the same species as an individual (with the exception of section 11.8 Commercial Fisheries Licensing Policy of Eastern Canada - Grandfather clauses in Maritimes Region, and other licensing flexibility tools - e.g. Combining).
2. When exercising their discretion to renew a license, the Minister reserves the right at the time of renewal to confirm that wholly-owned companies in the inshore and riparian fisheries sectors continue to meet the requirements of policy, as listed in subsection (1).

Rules applicable in the case of death of the sole shareholder

The following rules apply upon the death of the sole shareholder of a company holding an inshore or coastal licence.

1. Where a licence is issued to a wholly-owned company and the sole shareholder dies, the Department will only authorize an officer of the company, to conduct transactions on behalf of the wholly-owned company.
   • The officer will be granted the authority to submit:
     1. A request for a substitute operator to continue to prosecute the fishery on the company's behalf; or
     2. A request to reissue the licence to another licence holder who meets the eligibility criteria laid out in the applicable sections of DFO regulations and policies.
2. The request for a substitute operator or to reissue the licence must not exceed five years from the date of death of the original licence holder who was the sole shareholder of the wholly owned company.
   • If the wholly owned company intends to continue to be issued the licence beyond the 5 year maximum, all shares of the company must be transferred and controlled by one individual who meets the eligibility criteria as per DFO regulations and policies.
   • If the death of the sole shareholder occurs after a fishing season has started, the wholly owned company may continue to be issued and benefit from the licence(s) up to the end of that season.
3. The licence must be renewed annually and maintained in good standing with the fees paid prior to the licence being issued.

16. Change of licence holder

1. Current legislation provides that licences are not transferable. However, the Minister in "their absolute discretion" may for administrative efficiency prescribe in policy those conditions or requirements under which they will issue a licence to a new licence holder as a "replacement" for an existing licence being relinquished. These prescribed conditions or requirements are specified in this document.
2. Subject to subsection (5), a replacement licence may be issued upon request by the current licence holder to an eligible fisher recommended by the current licence holder.
3. Nothing in this Policy, except residency requirements, precludes the issuance of a licence to an Indigenous Organization as a replacement for a reissuable licence.
4. A licence may only be issued as a replacement licence once in every twelve (12) month period.
5. Subject to subsection (6), reissuable vessel-based licences for fisheries where only vessels less than 19.8m (65') are permitted to be used may only be issued as a replacement to the head of a core enterprise or to an Indigenous organization.
6. All vessel-based licences held by the head of a core enterprise may be issued as replacement licences only as a package to a qualified new entrant.
7. Entry into the Independent Core group is possible only by acquiring a Core enterprise. In addition, to qualify as a new entrant into the core group, an individual must meet all Regional eligibility criteria, please see the Regional licensing policies for further instruction.
8. The core status is transferred to the new licence holder upon issuance of the replacement licences.
9. The head of a core enterprise will lose their core status immediately upon relinquishing their last key licence, except in Maritimes Sector where the criteria is the last vessel-based licence. For the purpose of this policy, licences listed in Annex I are designated as key licences.
10. Subject to section (14), where there is a change in the controlling interest of a corporation that holds a licence, Ministerial approval will be required for renewal of the licences upon their expiry. Except for pre-1979 corporations, where a fisher previously owned the controlling interest in that corporation, inshore licences held by that corporation will not be renewed upon expiry.
11. Licences for non-vessel based fisheries may be issued as replacement licences to any individual unless provided otherwise in a species management plan. Until 1997, or earlier where management plans have been approved, eligibility rules that existed in 1995 will apply. Fisheries deemed either vessel-based or non-vessel based for the purpose of this licensing policy are listed in Annex II.
12. The following licences may not be issued as replacement licences to another fisher:
    1. category B lobster licences;
    2. exploratory licences;
    3. herring fixed gear licences where vessels 15.2m (50') LOA and over are used (Gulf Region);
    4. salmon;
    5. groundfish licences (including handlines) held by heads of non-core enterprises that are not pre-79 corporations;
    6. special groundfish gillnet licences for Canso Area;
    7. temporary tuna licences in the Newfoundland and Labrador Region;
    8. bait-fishing licences;
    9. mackerel handline licences;
    10. scallop licences for Areas 12, 13 and 14 which are held by the head of a non-core enterprise.
13. All conditions specified in a licence (i.e. area, gear type etc.) will be maintained upon the issuance of a replacement licence with the exception of the following:
    1. Authorized overlaps will, under the Sector Management Policy, expire when
       1. a replacement groundfish licence is issued to an individual residing in an alternate home port division (e.g. 4Vn to 4X); or
       2. the present groundfish licence holder takes up residence in an alternate home port division.
    2. Subject to paragraph (c), historical overlap privileges under the Sector Management Policy will expire when:
       1. a replacement groundfish licence is issued to another individual;
       2. the vessel is lost through repossession by a lending authority; or
       3. the vessel is replaced.
    3. Historical overlap privileges will not expire when a vessel is lost through fire, sinking, through circumstances beyond the licence holder's control etc.

The following provisions regarding the issuance of replacement licences are specific to individual DFO Region/Sectors:

A. Newfoundland and Labrador

14. Replacement licences may only be issued in fisheries where no new licences are being issued.
15. When a fisher who is restricted to using a vessel less than 19.8m (65') LOA relinquishes their privilege to be reissued a vessel-based licence for a particular species, they will not be eligible to be issued a licence for that same species within the next 12 months. However this restriction does not apply to exchange through issuance of replacement licences between two heads of core enterprises already licensed for the same species and where the conditions attached to those licences are different.
16. A mobile gear shrimp replacement licence may only be issued to the head of a core enterprise holding a mobile gear groundfish licence operating in the enterprise allocation program for vessels less than 19.8m (65') LOA.

B. Gulf Region

17. Notwithstanding section 16(5), vessel-based licences held by core enterprises restricted to using vessels less than 15.2 m (50') LOA may not be issued as replacement licences to core enterprises using vessels between 15.2m (50') LOA and 19.8m (65') LOA. The reverse is not permitted either.
18. When not utilizing vessels 15.2m (50') LOA and over:
    1. In the Kouchibouguac National Park of New Brunswick,
       1. in order to be eligible to obtain an eel, gaspereau or smelt licence through the issuance of a replacement licence, a fisher must have
          • been the holder of a smelt, eel or gaspereau licence validated for the waters inside the boundaries of the Park in 1967, 1968 or 1969, or
          • fished from Cape St Louis or Loggiecroft wharves and been registered as a commercial fisher in 1979.
       2. a fisher having relinquished their privilege to be issued an eel, gaspereau or smelt licence to another fisher will not be eligible to obtain another eel, gaspereau or smelt licence for the Park.
    2. When a fisher relinquishes their privilege to be issued a vessel-based licence for a particular species, they will not be eligible to be issued a licence for that same species within the next 12 months. However, this restriction does not apply to exchange through issuance of replacement licences between two heads of core enterprise already licensed for the same species and where the conditions attached to those licences are different.

17. Licence Splits

1. The splitting of mobile gear groundfish and mobile gear shrimp licences used on the same vessel is permitted provided the recipient of the shrimp licence combines it with a mobile gear groundfish licence for the same vessel size class.
2. The splitting of swordfish longline and non-bluefin tuna licences is not permitted.

18. Residency, homeport, or area of historical fishing

1. Residency, area of historical fishing or home port may be used as eligibility requirements when new or replacement licences are issued.
2. Where residency, area of historical fishing or home port are not used as eligibility requirements of licence issuance, then the proposed recipient of a replacement licence must meet the eligibility requirements for the area of residence of the present licence holder.
3. In the Maritimes Region:
   1. groundfish gillnet replacement licences for vessels less than 19.8m (65') LOA may only be issued to a fisher who has a homeport in the same zone as the previous licence holder. The definition of zone for this purpose is found under section 9(43).
   2. mid bay scallop replacement licences may only be issued to the head of a core enterprise who has historically fished from a port within the boundaries of the Scallop Fishing Area 28B and 28C.
4. Subject to subsection 8(a) and unless provided otherwise in a management plan, a replacement vessel-based licence may only be issued to the head of a core enterprise or qualified new entrant
   1. who is resident of the same DFO Administrative Area where the head who is relinquishing that licence was a resident when the licence was originally issued to them or,
   2. in the Newfoundland and Labrador Region, who has historically fished in the area for which the licence is valid or,
   3. in the Gulf Region, who has a traditional home port in the same DFO Administrative Area.
5. Subject to subsection 8(a), in the two DFO Administrative Areas of Gulf New Brunswick and Prince Edward Island, where vessels less than 15.2m (50') LOA are used, a vessel-based replacement licence for any species, other than mackerel, tuna and snow crab, may only be issued to the head of a core enterprise or a qualified new entrant residing adjacent to the same Lobster Fishing Area where the head who is relinquishing that licence was a resident when the licence was originally issued to them.
6. In the Newfoundland and Labrador Region, subject to subsection 8(a), a new vessel-based licence or a vessel-based replacement licence may only be issued to a fisher who is resident immediately adjacent to the fishing area for which the licence is valid or has historically fished in that area.
7. Subject to subsection 8(a), requests for the issuance of any replacement licences for vessels 19.8m (65') LOA and over, will be reviewed and decided upon on a case by case basis.
8. A swordfish longline replacement licence may be issued to any qualified person on the Atlantic coast.
   1. Notwithstanding subsection 18(4), a lobster licence for Lobster Fishing Area 27 (LFA 27) may be issued as a replacement either to the head of a core enterprise from the Maritimes Region or to a Gulf Region head of a core enterprise restricted to using vessels less than 15.2m (50') LOA.

19. Disposition of licence(s) in case of death of licence holder

1. Where the holder of a licence dies, a replacement licence may be issued in accordance with the policy on change of licence holder as stipulated under section 16, taking into consideration the request of the executor or of the legally appointed administrator. The estate may be given up to five years after the death to recommend an eligible person to whom a reissuable replacement licence may be issued.
2. A non-reissuable licence expires upon the death of a licence holder.
3. During the five-year period referred to under subsection (1), the licence must be renewed annually and the Department may approve the designation of a substitute operator.
4. For the purpose of renewing all licences or issuing of a replacement licence to a new licence holder, the executor or the legally appointed administrator must sign any related documents.

20. Disposition of licence(s) in case of bankruptcy of a corporation

1. Where a corporation that holds a licence is put into receivership, the licence held by the corporation remains valid, but will not be amended.
2. Once this licence expires and in the absence of notification from the officers of the corporation that the corporation is continued, the Licensing Authority will either:
   • not renew the licence in question; or
   • issue a replacement licence to an eligible applicant.

21. Issuance of new regular licences

1. New vessel-based licences for fisheries where only vessels less than 19.8m (65') LOA are permitted to be used will be offered only to heads of core enterprises or to Indigenous organizations.
2. The issuance of new licences requires approval by the Minister unless provided otherwise under Annexes III and IV of this policy document.
3. For the issuance of new vessel-based licences for fisheries where only vessels less than 19.8m (65') LOA are permitted to be used, where the number of new licences is limited and where there are more applicants than licences available, licence holders will be selected through a random draw among heads of core enterprises who meet criteria established in consultation with appropriate industry representatives.
4. For the issuance of licences for vessels 19.8m (65') LOA and over, eligibility criteria and applicant selection mechanisms will be developed on a case by case basis.

22. Issuance of exploratory licences

1. If a fishery is new, developing or underutilized, exploratory licences may be issued upon approval of the Minister.
2. New exploratory vessel-based licences for fisheries using vessels less than 19.8m (65') LOA will be offered only to heads of core enterprises or to Indigenous organizations.
3. The issuance of an exploratory licence to a person does not imply any further commitment by the Minister to issue a similar licence to the same person upon expiry of the exploratory licence.
4. A fisher who is issued an exploratory licence will be required to meet established participation requirements and other program requirements to be eligible to be issued a similar licence once that exploratory licence expires.
5. Holders of exploratory licences may be given priority to receive regular licences for the same fishery.
6. For the issuance of new vessel-based exploratory licences for fisheries where vessels less than 19.8m (65') LOA are permitted, where the number of exploratory licences is limited and where there are more applicants than licences available, licence holders will be selected through a random draw among heads of core enterprises which meet criteria established in consultation with appropriate industry representatives.
7. For vessels 19.8m (65') LOA and over, eligibility criteria and applicant selection mechanisms will be developed on a case by case basis.

23. Vessel repossession

1. Subject to subsection (2), licence(s) remain(s) with a licence holder when their vessel has been repossessed.
2. 1. On receipt of written notification from a Government Lending Authority (e.g., Provincial Loan board) of vessel repossession, all fishing licences issued in respect of the vessel involved will remain valid, but will not be amended.
   2. The Licensing Authority will maintain the eligibility to the fishing licence(s) in the name of the present licence holder for a maximum period of 60 days. This period is intended to enable the licence holder to settle or renegotiate their loan.
   3. Following the expiry of the 60-day period, and in the absence of notification of a settlement from the Government Lending Authority involved, the licence holder will lose their eligibility to renew the licence(s) held in respect of the vessel repossessed and the Licensing Authority will either:
      1. not reissue the licence(s) in question; or
      2. issue a replacement licence(s) to eligible applicant(s).
   4. In the case of vessel repossessions involving enterprise allocation,
      1. licence holders with one vessel: any licence and enterprise allocations held will revert to the Licensing Authority for possible reallocation.
      2. (ii) licence holders with more than one vessel: a portion of the licence holder's enterprise allocations equivalent to the average historical catch of the vessel repossessed will revert to the Licensing Authority for possible reallocation.
3. For the purpose of section 23, the expression "Government Lending Authority" includes a governmental authority which provides guarantees for loans granted by private institutions.

Chapter 4 - Vessel replacement rules for vessels less than 19.8m (65') LOA

24. Vessel replacement rules

1. The replacement of a vessel utilized in more than one fishery (e.g. groundfish and shrimp) will be governed by the most restrictive vessel replacement rules.
2. If a vessel less than 65' (19.8m) LOA in any fishery is replaced with one of a smaller size than the vessel being replaced, a licence holder will retain their eligibility to reenter in the future a vessel as large as the replaced vessel.

All Regions

A. Groundfish

Vessels less than 10.7m (35') LOA

3. The holder of a licence authorized to use a vessel less than 10.7m (35') LOA may not have their licence amended to authorize the use of any vessel 10.7m (35') LOA and greater and having a cubic number greater than 71m3 (2500ft3) LOA. (Grandfather clause provided)
4. In the Newfoundland and Labrador Region, subject to subsection (2), non-core fishers may not replace their vessels with one longer than the one currently registered.
5. Notwithstanding subsection (3), in the Newfoundland and Labrador Region, the holder of a licence authorized to use a vessel between 7.6m (25') LOA and 10.7m (35') LOA may not have their licence amended to use a vessel longer than the vessel being replaced.

Vessels 10.7m (35') LOA up to but not including 19.8m (65') LOA

6. The holder of a licence authorized to use a vessel within a size class set out in the tables to this section may not have their licence amended to authorize the use of any vessel:
   1. greater than the upper length limit set out for that class; and
   2. with a cubic number that exceeds the cubic number of the vessel being replaced (Grandfather clause provided)

      Vessel size classes: Maritimes/Quebec Region(s)/Western Portion of the Newfoundland and Labrador Region

      Size class	Length overall: meters(feet)	Cubic number: Maximum
      A	10.7 - 13.7 (35 - 44.9)	170 m3(6,004.4 ft3)
      B	13.7 - 19.79 (45 - 64.9)	600 m3 (21,192.0 ft3)

      Vessel size classes: Eastern and Southern Portions of the Newfoundland and Labrador Region

      Size class	Length overall: meters(feet)	Cubic number: Maximum
      C	10.7- 16.49 (35 - 54.9)	330 m3 (11,655.6 ft3)
      D	16.5- 19.79 (55 - 64.9)	600 m3 (21,192.0 ft3)

7. In the Newfoundland and Labrador Region, notwithstanding subsections (2) and (6), non-core fishers may not replace their vessels with one longer than or having a cubic number larger than the one currently registered.
8. Where the cubic number of the vessel to be replaced is not provided, equivalent cubic numbers listed in Annex VI will be used.

Quebec Region

B. Scallop

9. The holder of a scallop licence may not have their licence amended to use a vessel 15.2m (50') LOA or longer, except for that portion of Scallop Fishing Area 18B (south of Anticosti Island) where vessels up to 19.8m (65') LOA may be utilized.

C. Inshore crab, lobster, whelk, capelin, mackerel, or herring, sea urchin, or clam

10. The holder of an inshore crab, lobster, whelk, capelin, mackerel or herring licence may not have their licence amended to use a vessel 15.2m (50') LOA or longer.

D. Midshore crab (Area 12)

11. The holders of a midshore crab licence may not have their licence amended to use a vessel 30.5 m (100') LOA or longer.

Newfoundland and Labrador Region

E. All species

12. The same vessel replacement rules applicable to groundfish also apply to all other species.

Gulf Region

F. All species other than groundfish

13. The holder of a licence authorized to use a vessel less than 13.7m (45') LOA may not have their licence amended to use a vessel 13.7m (45') LOA or longer.
14. The holder of a licence authorized to use a vessel between 13.7m (45') LOA and 15.2m (50') LOA may not have their licence amended to use a vessel 15.2m (50') LOA or longer.
15. The holder of a licence authorized to use a vessel between 15.2m (50') LOA and 19.8m (65') LOA may be authorized to use a vessel 25 percent longer but may not have their licence amended to use a vessel 19.8m (65') LOA or longer.

Maritimes Region

G. Lobster

16. The holder of a lobster licence for Lobster Fishing Area 33 or 34 may not have their licence amended to authorize the use of a vessel 13.7m (45') LOA or longer.

H. Herring

17. The holder of a herring drift net licence having a home port in Lobster Fishing Area 34 may not have their licence amended to use a vessel 13.7m (45') LOA or longer.
18. The holder of a herring drag seine licence may not have their licence amended to use a vessel 19.8m (65') LOA or longer.

I. Scallop

19. The holder of a scallop licence for Scallop Fishing Area 29 (inshore Scotian Shelf) may not have their licence amended to use a vessel 13.7m (45') LOA or longer if his present vessel is less than 13.7m (45') LOA, or a vessel 19.8m (65') LOA or longer if their present vessel is between 13.7m (45') LOA and 19.8m (65') LOA.
20. The holder of a scallop licence for the Bay of Fundy, Mid-Bay, or Upper Bay of Fundy fisheries may replace their vessel with one within the same 1.5m (5') interval, established by the LOA of the vessel being replaced.
21. For the purpose of subsection 20, 1.5m (5') length intervals commence at any length which is a multiple of 5' and include that length and the next 4'11", i.e., 15'-19'11", 20'-24'11", 25'-29'11", 30'-34'11", 35'-39'11", 40'-44'11", etc.

J. Mackerel

22. The holder of a mackerel purse seine licence for eastern Nova Scotia (4VW) may not have their licence amended to use a vessel 13.7m (45') LOA or longer.

K. Inshore quahaug

23. The holder of an inshore quahaug licence for mechanical harvesting may not have their licence amended to use a vessel 13.7m (45') LOA or longer.

L. Other species

24. The holder of a licence for any other species may not have their licence amended to use a vessel 19.8m (65') LOA or longer.

Chapter 5 - Policies for vessels 19.8m (65') LOA and greater

25. Processing at sea policy

Licence holders are permitted to process at sea (filleting) only the following non-traditional groundfish species: silver hake, grenadier, argentine.

26. Factory freezer trawler policy Groundfish -1996-2000

1. A maximum of three groundfish factory freezer trawler (FFT) licences may be issued to selected East coast fishing companies.
2. One licence each is reserved for National Sea Products and Fishery Products International, while the third licence is reserved for a corporation or consortium from the remaining offshore groundfish corporations.
3. At least 50 per cent of a factory freezer trawler's catch must be made up of previously underutilized Enterprise Allocations as identified prior to the licence being issued.
4. No more than 6,000t of a corporation's 2J3KL (Northern) cod allocation can be harvested by a FFT in any one year.
5. FFTs will not be permitted to operate in the Gulf of St. Lawrence or the Bay of Fundy.
6. To operate a FFT, a corporation must retire a vessel from its present fleet in accordance with the existing vessel replacement guidelines under the Enterprise Allocation program.
7. A corporation must outline an acceptable plan to minimize the socio-economic/community impact.
8. All information associated with the operation of the FFTs must be made available to the Department of Fisheries and Oceans upon request.
9. FFTs must be registered immediately as Canadian vessels and crewed fully by Canadians.
10. Canadian Conversion Factors for the purpose of quota monitoring will apply. The provisional factors for cod, redfish, small flatfish and Greenland halibut to the round state are identified in STACAC Standards Documents.
11. FFTs should meet DFO plant certification and regulations subject to adjustments for processing at sea.
12. There will be 100 per cent observer coverage required and the cost will be paid by the licence holder. Provisions must be made on board for up to two observers, if required.
13. The Department will be charging a licence fee based on a company's individual Enterprise Allocations.

27. Vessel replacement rules

1. The holder of a groundfish or shrimp licence authorized to use a vessel 19.8m (65') LOA and over but less than 30.5m (100') LOA may not have their licence amended to authorize the use of a vessel:
   1. with a LOA greater than 105 percent of the LOA of the original vessel, up to a maximum of 30.5m (100') LOA; and
   2. with a hold capacity that exceeds 110 percent of the hold capacity of the original vessel.
2. Notwithstanding subsection (1) and subject to section (28), the holder of a groundfish licence participating in the Midshore EA Program may have their licence amended to authorize the use of only one vessel less than 30.5m (100') LOA per vessel authorized on the licence.
3. Subject to section (28), the holder of a groundfish licence authorized to use a vessel 30.5m (100') LOA and over may have their licence amended to authorize the use of only one vessel of any length per vessel authorized on the licence.
4. A wetfish vessel may be replaced by a freezer vessel.

28. Temporary vessel replacement program

1. This program does not apply to vessels or licence holders based in 2J3KLPs.
2. The use of vessels less than 19.8m (65') LOA by midshore or offshore EA groundfish licence holders must be for a well-defined period of time. It is not the intent of this policy to permit vessels less than 19.8m (65') LOA to regularly switch between offshore, midshore and inshore sectors. A vessel less than 19.8m (65') LOA will be identified on a midshore or offshore EA groundfish licence for a minimum period of 2 months. The deadline for approving the use of a vessel less than 19.8m (65') LOA under the Program is October 25 of each calendar year.
3. A maximum of two vessels less than 19.8m (65') LOA will be permitted to replace one midshore or offshore vessel at any one time, subject to the following exception:
   • Midshore and offshore companies may replace one offshore or midshore vessel with more than two vessels less than 19.8m (65') LOA providing that the replacement vessels less than 19.8m (65') LOA are licensed for inshore groundfish in the name of the company.
4. If the replacement is a "one for one" replacement, then the less than 19.8m (65') LOA vessel would have access to the offshore or midshore competitive quotas.
5. If the replacement is "two for one" replacement, then the less than 19.8m (65') LOA vessels would not have access to the offshore or midshore competitive quotas.
6. Vessels less than 19.8m (65') LOA participating in the Program will be subject to the same specific licence condition or requirements as the midshore or offshore vessels being replaced, including the use of observers where required, participation into the dockside monitoring program, as well as conforming to all reporting and regulatory requirements.
7. While their vessels are fishing for a midshore or offshore EA groundfish licence holder, inshore fishers participating in the program must have these vessels removed from any inshore licence they have been issued.

Chapter 6 - Seal licensing policy for eastern Canada

This Seal Licensing Policy, made under the authority of the Fisheries Act and its Regulations, forms part of the Commercial Fisheries Licensing Policy for Eastern Canada and should be interpreted accordingly.

29. Application of policy

This policy applies to the registration of fishing vessels and the issuance of licences to all persons hunting (fishing) for, taking, or killing seals or otherwise engaging in sealing operations throughout the Canadian Fisheries Waters on the Atlantic Coast and, more specifically, the Sealing Areas 4 to 33 and the northern Quebec and Labrador portions of Sealing Area 3.

30. Interpretation

In this Policy, expressions have the same meanings as in the Commercial Fisheries Licensing Policy for Eastern Canada or as defined below:

1. "Beneficiary" means a person enrolled as a beneficiary under the James Bay and Northern Quebec Agreement.
2. "Sealing" means, for the purpose of the present policy, the hunting (fishing) for, killing and skinning of seals, the handling and transporting of raw seal pelts, meat or carcasses from the place where they are killed to the land and the transporting of persons engaged in sealing to and from the killing area, and includes searching for seals from helicopters and other aircraft.
3. "Sealing Licence" means that licence which is issued in respect of hunting (fishing) for seals under the authority of the Marine Mammal Regulations.
4. "Subsistence" means for personal use or for community use as defined in chapter 24 of the James Bay and Northern Quebec Agreement.

31. Exemptions

1. An Indigenous person other than a Beneficiary may, without a licence, hunt (fish) for seals for food, social and ceremonial purpose.
2. A Beneficiary may, without a licence, hunt (fish) for seals for subsistence purposes within the area covered by the agreement under which he is enrolled.
3. A person other than a person referred to in subsection (1) or (2) above, residing immediately adjacent to any of Sealing Areas 1 to 4 may hunt (fish) for seals without a licence in those Sealing Areas for food, clothing and personal utilization purposes.

32. Type of licence

1. Professional sealing licences are those licences issued to persons who may engage in sealing on their own and who may supervise assistant sealers.
2. Assistant sealing licences are those licences issued to persons who do not meet the eligibility criteria to receive professional sealing licences and who may not engage in sealing except under the supervision of a person who holds a professional sealing licence.
3. Personal-use sealing licences are those licences issued to authorize the taking of up to six seals a year for personal use only.

33. Eligibility

1. Professional sealing licences may only be issued to persons who held a professional sealing licence during the previous year.
2. Assistant sealing licences may only be issued to persons who are not eligible to receive a professional sealing licence and who are in possession of a written confirmation from a professional sealer to the effect that the assistant sealer will be hunting (fishing) under the supervision of this professional sealer during the following sealing season.
3. Notwithstanding section 33(1), professional sealing licences may be issued to persons who meet the following conditions:
   1. Are 18 years of age or more; and
   2. Have been issued assistant sealing licences and have actively participated in the seal fishery during the two preceding years.
4. Notwithstanding sections 33(1) and 33 (3), professional sealing licences may be issued to Beneficiaries, Indians or Inuit who are recognized as commercial hunters by their community or their band. Regarding Beneficiaries, licences must be issued according to article 24.3.18 of the James Bay and Northern Quebec Agreement.
5. Licences may specify any one or more of the following conditions:
   1. the species and the stage of development of seals and quantities thereof that are permitted to be taken;
   2. the waters in which sealing is permitted to be carried out;
   3. the period during which sealing is permitted to be carried out;
   4. the vessel that is permitted to be used;
   5. the person or persons permitted to operate the specified vessel;
   6. the type and quantity of sealing gear and equipment that is permitted to be used and the manner in which it is to be used;
   7. the specific location at which sealing gear is permitted to be set;
   8. whether seals taken are for personal use only and may not be sold, bartered or traded;
   9. whether seal carcasses are to be landed; and
   10. the information that shall be reported to the Department of Fisheries and Oceans.
6. The holder of a sealing licence may not be authorized to use a vessel l9.8m (65') LOA or longer.
7. Where a vessel is being used in sealing, all members of the vessel crew including the captain/operator must hold valid sealing licences and at least one member of the crew must hold a professional sealing licence.
8. Where a vessel longer than 10.7m (35') LOA is used, the vessel must be registered and specified as a condition on the professional sealing licence of a person who is on board the vessel during the sealing operations.
9. Personal-use sealing licences may be issued to:
   1. individuals who held a personal-use sealing licence the previous year and who hold a valid provincial hunting licence for big game or a hunter's capability certificate; or
   2. individuals who held or were eligible to hold a professional or assistant sealing licence the previous year and who hold a valid provincial hunting licence for big game or a hunter's capability certificate; or
   3. individuals, 18 years of age or older, residing immediately adjacent to established sealing areas throughout Newfoundland and Labrador, the Quebec Upper and Lower North Shore, the Gaspé Peninsula, the Magdalen Islands, New Brunswick, Prince Edward Island, and Nova Scotia who hold a valid provincial hunting licence for big game or a hunter's capability certificate and have attended a mandatory information session.
10. Mandatory Humane Harvesting
    1. It is mandatory that all Commercial Seal harvesters (Professional and Assistant) be trained in the three-step process of Humane Harvesting through an accredited DFO Humane Harvesting course.
       
    2. Participation in Personal Use Humane Harvesting training cannot be used to substitute for the successful completion of the mandatory Commercial Humane Harvesting training.

Chapter 7 - Appeal process and procedures

34. Access to appeal process

1. Eligible inshore and coastal licence holders who are not satisfied with licensing decisions taken by DFO officials have a right to appeal those decisions. To appeal a licensing decision, a written request must be filed within three years of a Departmental licensing decision or a change in policy.
2. Decisions regarding licence eligibility requirements outlined in the Atlantic Fishery Regulations, 1985 the Maritime Provinces Fishery Regulations, cannot be appealed through the Fisheries Licence Appeal System.

35. Appeal system (structure)

1. The Departmental Appeal Committee structure is described in Annex V.
2. The role of the Regional Licensing Appeal Committee is to review all pertinent information and recommend to the Regional Director General that an appellant's request be approved or denied.
3. Appellants will be notified in writing of the time and location of their appeal hearing.
4. An appellant has the right to appear in person and/or to be represented by another person at all appeal levels.
5. An appellant will be notified in writing as to the outcome of the appeal hearing.
6. If the decision of the Regional Director General is negative, the appellants will be informed of the details respecting how an appeal may be made to the Atlantic Fisheries Licence Appeal Board.
7. The Atlantic Fisheries Licence Appeal Board will only hear appeals requested by fishers who have had their appeals rejected following hearings by Regional Licensing Appeal Committees.
   1. The Board will consider only those licensing appeals which deal with policies for vessels less than 19.7m (65') LOA.
   2. The Board will only hear appeal requests made within three years from the date of a licensing decision or a change in policy.
   3. The Board will make recommendations to the Minister on licensing appeals rejected through the Regional Licensing Appeal Structure by:
      1. determining if the appellant was treated fairly in accordance with the Department's licensing policies, practices and procedures;
      2. determining if extenuating circumstances exist for deviation from established policies, practices, or procedures;
   4. Where the Board recommends making an exception to policy, practice or procedure in an individual case, the Board will provide a full rationale for its recommendation to the Minister.
   5. The Board may make recommendations to the Minister on changes to licensing practices and procedures where, in the opinion of the Board, they are inappropriate or unfair, by:
      1. the Chairman advising the Board Administrator of Board concerns;
      2. addressing such concerns at full Board meetings;
      3. providing a written rationale or justification supporting the recommended change;
      4. providing a written assessment of the perceived implications of the proposed change.
8. Notwithstanding subsection (7), the Minister may refer to the Board any decision they may wish to have reviewed.

Chapter 8 - Policy amendments

36. Amendment procedures

Where the need to change a policy arises, the Regional Director General proposing the change will submit the proposal to the Assistant Deputy Minister, Fisheries Management, for review and approval.

37. Consultations

1. The Department recognizes the need to provide opportunities for public review and input in the development of licensing policies.
2. It is the policy of the Department to consult the fishing industry and provincial governments on major or controversial licensing issues and on the development of new policies and legislation with respect to licensing.
3. The Minister may consider all views expressed in arriving at a decision, consistent with the government's stated objectives.

38. Notification of licensing policy amendments

Every reasonable effort will be taken by the Department to inform members of the fishing industry of all changes to licensing policy, through press announcements, regional newsletters and through the existing consultative process, allowing sufficient lead time for fishers to adjust to the new policy.

Annex I (Section 16)

Key licences

A. Newfoundland and Labrador Region

Key licences are groundfish (active), capelin, lobster, snow crab, scallop, shrimp, all species using purse seine, and, on the Labrador coast, salmon and char.

B. Maritimes Region

Key licences are herring purse seine, groundfish other than handline, scallop, category A lobster, bluefin tuna, snow crab, swordfish longline, shrimp trawl.

C. Gulf Region

• For bonafide fishers (as defined under pre-1996 Policy):
  • Key licences are snow crab, category A lobster, groundfish other than handline, scallop, bluefin tuna and herring.
• For non-bonafide fishers:
  • Key licences are shrimp, snow crab, category A lobster, groundfish ITQ only.

D. Quebec Region

Key licences are shrimp, snow crab, lobster, groundfish other than handline, scallop, herring and, on the Lower North Shore, capelin.

Annex II (Section 16)

Fisheries deemed either vessel-based or non-vessel based

Vessel-based fisheries

• Billfish
• Capelin
• Crab
• Groundfish
• Hagfish
• Herring
• Lobster
• Mackerel
• Clam (Mechanical gear)
• Periwinkle
• Salmon/Char
• Scallop
• Sea Cucumber
• Sea Urchin
• Shark
• Shrimp
• Silverside
• Squid
• Swordfish
• Tuna
• Whelk

Non-vessel based fisheries

• Alewives
• Bass
• Clam (Hand tools)
• Eel
• Gaspereau
• Herring Weir
• Marine Plants
• Mussels
• Oysters
• Seal
• Shad
• Smelt

Any species not listed above are deemed non vessel-based fisheries.

Annex III (Section 21)

Footnote Number - Number denotes specific limited entry requirements described in the next pages

• OA - Open Access
• N/A - Not Applicable to Area
• P - Provincial Administration
• X - Limited Entry
• NL - No Licence Currently Required

Annex IV - Footnotes

Quebec

1. Clams: No licence required for soft-shell clam except for mechanical and hydraulic harvesters where each application is ruled on separately. Limited entry for other clam species.
2. Squid: Open access under 19.8m (65') LOA , except for trap licences, providing applicant is head of a core enterprise and is licensed for same gear type e.g. groundfish otter trawl may be licensed for squid otter trawl. Licences available for all groundfish licence holders operating vessels 19.7m (65') LOA or greater.
3. Mackerel: Limited entry except for fixed gear licences which may be issued to any head of core enterprises who holds a herring fixed gear licence for a vessel less than 15.2m (50') LOA and handline licences which may be issued to any head of a core enterprise.
4. Mussels: No licence required except for mechanical and hydraulic harvesters where each application is ruled on separately.
5. Seals: Licences issued as per chapter 6 of this document.

Newfoundland and Labrador

1. Clams: No licence required for soft-shell clam except for mechanical and hydraulic harvesters where each application is ruled on separately. Limited entry for other clam species.
2. Mackerel: Purse seine is limited entry; fixed gear licences are available to any head of a core enterprise.
3. Squid: Limited entry for inshore mobile gear licences. Trap or jigger licences available to heads of a core enterprise who have a vessel less than 19.8m (65') LOA registered. Licences available for all groundfish licence holders operating vessels 19.7m (65') LOA or greater.
4. Seals: Licences issued as per chapter 6 of this document.

Maritimes

1. Clams: Open access for soft-shell clam except for mechanical and hydraulic harvesters where each application is ruled on separately. Limited entry for other clam species.
2. Marine Plants: Drag rakes are Limited entry; hand raking is open access.
3. Squid: Open access under 19.8m (65') LOA, except for trap licences, providing applicant is head of a core enterprise and is licensed for same gear type e.g. groundfish otter trawl may be licensed for squid otter trawl. Licences available for all groundfish licence holders operating vessels 19.7m (65') LOA or greater.
4. Mackerel: Limited entry except for fixed gear licences which can be issued to any head of a core enterprise.
5. Seal: Licences issued as per chapter 6 of this document.
6. Mussels: Open access for hand harvesting only. Limited entry for other gear.

Gulf

1. Mussels: Limited entry except licences to fish by hand or with hand held tools which are available to residents of the Nova Scotia, New Brunswick and PEI Administrative Areas of the Gulf Sector who do not have full-time employment.
2. Gaspereau: New licences may be issued to heads of core enterprises using vessels less than 15.2 m (50") LOA who are resident of the Nova Scotia Administrative Area of the Gulf Sector. New dip net licences may be issued to residents of this Administrative Area. However, new licences may not be issued for:
   1. Pictou Harbour or coastal waters from Broad Cove March to Cape North;
   2. Margaree Harbour or Margaree River.
3. Oyster: Limited entry except in the Nova Scotia Administrative Area of the Gulf sector, where commercial oyster licences are available to persons who are resident of this Administrative Area and who hold a commercial licence for another species valid for the Gulf Nova Scotia waters, or for 1996 only, to persons who held an oyster licence for this Administrative Area in either 1993 or 1994.
4. Squid: Open access under 19.8m (65') LOA , except for trap licences, providing applicant is head of a core enterprise and is licensed for same gear type e.g. groundfish otter trawl may be licensed for squid otter trawl. Licences available for all groundfish licence holders operating vessels 19.7m (65') LOA or greater.
5. Mackerel: Limited entry except for fixed gear licences which may be issued to any head of core enterprises who holds a herring fixed gear licence for a vessel less than 15.2m (50') LOA and handline licences which may be issued to any head of a core enterprise.
6. Silverside: New licences may be issued to head of core enterprise.
7. Seal: Licences issued as per chapter 6 of this document.

Annex V (Section 35)

Appeal Committee Structure

First Level – Regional Licensing Appeal Committee

1. Committee Composition: Senior DFO Staff
2. Reports to: Regional Director General

Second Level – Atlantic Fisheries Licence Appeal Board

1. Committee Composition:
   1. 1 Chairperson; and
   2. Up to six persons from each of the 3 Regions appointed by the Minister
   3. 1 Departmental Officer (non-voting)
2. Reports to: Minister of Fisheries and Oceans

Annex VI (Section 24)

Annex VII (Section 15)

Revision: June 2021

List of inshore licences held by corporations since 1978