Canada Gazette, Part I, Volume 159, Number 48: Regulations Amending Certain Regulations Made Under the Customs Act (Transit Between International Flights)

November 29, 2025

Statutory authority
Customs Act

Sponsoring agency
Canada Border Services Agency

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the regulations.)

Issues

The Canada Border Services Agency (CBSA) currently operates a pilot project process for inbound international travellers who are transiting through Canada to another international destination, but are not seeking to enter Canada. The International to International (ITI) pilot project makes the transit process less burdensome for these travellers by eliminating the need for an officer to examine them in person and exempting them from the obligation to present under the Customs Act. However, under the Immigration and Refugee Protection Regulations (IRPR), these travellers are still required to appear for an examination with the CBSA. This requirement is met when passengers use an ITI kiosk rather than presenting themselves to a CBSA officer. Modifying the advance passenger and exit information provided by air carriers to identify transiting travellers would eliminate the need for transiting travellers to appear for an examination with the CBSA, either to an officer or at a kiosk, thereby improving the efficiency of the ITI transit process. Regulatory amendments are required to implement a more efficient and effective free-flow model for ITI transit, where international transiting travellers would not need to interact with the CBSA. Such a model would improve the economic competitiveness of Canadian airports as transit hubs and improve Canadian airlines’ access to the transit market.

Background

In early 2018, the CBSA launched an ITI pilot project for international travellers transiting through, but not seeking to enter, Canada. The pilot project was developed in response to growing air passenger volumes and was intended to be a facilitative measure to improve the competitiveness of Canadian airports and air carriers. The ITI pilot project currently operates at Vancouver International Airport, Toronto Pearson International Airport and Pierre Elliott Trudeau International Airport in Montréal. Under the ITI pilot project, travellers transiting internationally through Canada disembark from their inbound flight, scan their passport at an ITI-specific kiosk, and proceed directly to the international departures area. Documentary requirements remain unchanged; transiting travellers must hold the proper immigration authorization to transit through Canada, including a Temporary Resident Visa or an Electronic Travel Authorization.

The Immigration and Refugee Protection Act requires that every person seeking to enter Canada appear for an examination with a CBSA officer to determine whether that person has a right to enter Canada or may become authorized to enter and remain in Canada. The ITI pilot project does not operate as an exemption from this requirement; rather, it is an alternative means of examination. Currently, the IRPR only exempt transiting travellers from the requirement to appear for an examination if they remain in a “sterile transit area,” which is defined as an area in an airport where in-transit passengers, in-transit preclearance passengers, or goods that are in transit or pre-controlled are physically separated from other passengers and goods.

The Presentation of Persons (2003) Regulations (POPR) and Reporting of Imported Goods Regulations (RIGR), enacted under the Customs Act, also include requirements for transiting travellers; however, these regulations exempt transiting passengers from certain obligations provided they remain in a “designated holding area.” A “designated holding area” is defined as an area designated by the President of the CBSA for the use of persons arriving in Canada who are in transit.

The key difference between a “sterile transit area” under the IRPR and a “designated holding area” under the POPR and RIGR is that, in a “sterile transit area,” physical infrastructure must separate in-transit passengers in this area from all other travellers in the area. In a “designated holding area,” it is permissible for travellers to have access to airport shops and services, and areas where co-mingling occurs between in-transit and other departing international travellers. Since the ITI process allows for co-mingling, travellers are in a “designated holding area” but not a “sterile transit area.” Therefore, they can benefit from exemptions from certain requirements under the Customs Act, but are still required to appear for examination by the CBSA under the Immigration and Refugee Protection Act.

Since the ITI process operates as an exception to Customs Act requirements, any traveller who leaves the international departures area is subject to an in-person examination by the CBSA. The CBSA may also exercise its authority to intercept individuals of interest in the departures area. Therefore, when the CBSA is notified that a traveller of concern will be transiting through Canada to board another international flight, the CBSA may deploy officers to meet the individual at the arrival gate.

In addition to the obligations imposed on transiting travellers to support the ITI process, there are various requirements imposed on commercial air carriers to further support the ITI process by enabling the risk assessment of travellers in advance of their arrival in Canada. The Passenger Information (Customs) Regulations (PICR) and the IRPR require air carriers to collect and provide Advance Passenger Information in order to verify whether a traveller has the appropriate travel documents to transit through or enter Canada and for advance risk assessment purposes. The Exit Information Regulations (EIR) impose complementary requirements for commercial air carriers to provide Air Exit Information from travellers departing Canada. Advance Passenger Information and Air Exit Information contain identical data elements about travellers, including name, date of birth, gender, citizenship, and travel document data, such as a passport number. There are minor differences in the flight details collected for the inbound Advance Passenger Information and outbound Air Exit Information messages. Air Exit Information data is used to establish a travel history for persons crossing Canada’s borders.

For fiscal year 2024–2025, the CBSA processed over 737 000 ITI passengers, or an average of over 2 000 travellers a day, including upwards of 5 000 travellers per day in the peak summer period. The ITI pilot project has been positively received by all stakeholders due to its benefits for travellers, industry, and the Government alike. The ITI process contributes to easing congestion and delays in customs halls, creating resource efficiencies for the CBSA, supporting growth in volumes of transiting travellers, and enabling faster connection times through ITI-enabled airports, which makes flights in the ITI pilot project more attractive to passengers.

Despite the ITI pilot project’s success, the need to comply with regulatory requirements under the IRPR has limited the CBSA’s ability to implement a free-flow process for international transit in which transiting travellers would not need to interact with the CBSA, in person or at a kiosk.

Objective

The proposed Regulations Amending Certain Regulations Made Under the Customs Act (Transit Between International Flights) and the proposed Regulations Amending the Immigration and Refugee Protection Regulations (Transit Between International Flights) [referred to jointly as “the proposed Amendments”] seek to create a framework that enables the implementation of a free-flow process for ITI transit in which travellers can proceed to their departing flight without needing to interact with the CBSA in person or at kiosk as long as they remain in a “designated holding area” or “sterile transit area.” The proposed Amendments seek to facilitate international transit by providing maximum flexibility for airport authorities to effectively manage transit in accordance with operational needs and ensure alignment in terminology used in related regulatory provisions.

The proposed Amendments also seek to strengthen program integrity for the ITI process by using traveller compliance history to inform risk assessments.

Description

Immigration and Refugee Protection Regulations

The IRPR would be amended to

Presentation of Persons (2003) Regulations and Reporting of Imported Goods Regulations

The POPR and RIGR would be amended to update the definition of a designated holding area to highlight that it is an area that is physically separated from other areas. The definition of a sterile transit area that is currently in the IRPR would also be added to the POPR and the RIGR. A reference to “sterile transit area” would be added to provisions that currently reference “designated holding area” so that these provisions would include a reference to both areas. This would allow for exemptions and requirements to be cohesive across both customs and immigration frameworks.

Passenger Information (Customs) Regulations

The PICR would be amended to require that commercial air carriers provide the CBSA with additional information as part of their Advance Passenger Information submission (including the status of every person on board a flight bound for Canada or information about their first destination outside Canada if they are transiting through Canada). This change would mirror those made to the IRPR.

Exit Information Regulations

The EIR would be amended to require that commercial air carriers provide information about the first destination outside of Canada of the persons or goods on board the aircraft, and the date and time of their arrival, as part of their Air Exit Information submission.

Regulatory development

Consultation

The primary stakeholders of this regulatory proposal are international transiting travellers, commercial air carriers, and Canadian airport authorities. While no proactive consultations have occurred with travellers about this proposal, the CBSA and Immigration, Refugees, and Citizenship Canada (IRCC) engaged air industry partners, including Air Canada, WestJet, Vancouver Airport Authority, Greater Toronto Area Airports Authority, and Montreal Airport Authority, on this proposal at Travel and Connectivity Working Group meetings in November 2020 and June 2021, where it was positively received by stakeholders.

The CBSA consulted air industry partners (including eight large air carriers, eight small air carriers and all three ITI-enabled airports), IRCC, and Transport Canada on the regulatory proposal by email in December 2022. Responses were received in January 2023 and the feedback received was positive. For example, the National Airlines Council of Canada noted that free-flow ITI transit would provide benefits to travellers, industry, and Government that would improve the competitiveness of Canadian airports and carriers. Airport authorities also supported the changes because of those same benefits. The airlines consulted also noted the success of the pilot project and supported the move to normalize this process in regulations. The consulted air carriers did not raise concerns about the potential cost associated with modifying IT systems to submit new Advance Passenger Information data elements. The consulted airport authorities (those currently operating ITI transit and that may wish to do so in future) also indicated that the costs associated with the proposed Amendments would be minimal.

Consultation with air industry partners has continued through various existing engagement forums, including the Air Consultative Committee and the Travel and Connectivity Working Group, which are held on an annual, quarterly, and ad hoc basis.

Proactive consultations have not taken place on the proposed Amendments to the POPR and RIGR given their minor impact on traveller processing.

Indigenous engagement, consultation and modern treaty obligations

An assessment of modern treaty implications was conducted in accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation. No impacts on Indigenous peoples are anticipated as a result of the proposed Amendments.

Instrument choice

As requirements on examination, presentation, goods reporting, Advance Passenger Information, and Air Exit Information are established in regulations, regulatory amendments are the only possible instrument choice to accomplish the objective. Therefore, other instruments were not considered.

Regulatory analysis

Benefits and costs

The proposed Amendments are expected to generate minor cost savings because airports that currently operate the ITI pilot project would be able to decommission ITI kiosks and repurpose them as Primary Inspection Kiosks. This would allow airports to create resource efficiencies in the Customs Hall by creating the capability to process more travellers. The proposed Amendments are expected to increase operational efficiency in the CBSA and improve operational readiness at airports of entry.

The proposed Amendments are expected to impose costs on the CBSA, the bulk of which would be associated with information technology (IT) development and required system changes. Initial feedback from air carriers indicated that they already collect and provide the new Advance Passenger Information and Air Exit Information elements; therefore, these costs would be carried by the CBSA.

Baseline scenario

The baseline scenario for the proposed Amendments assumes that the existing ITI pilot project continues indefinitely, with airport authorities with approval to participate in the ITI process and commercial airports continuing to bear minor costs to maintain the required infrastructure (e.g. ITI kiosks) and minor costs related to personnel, including airport authority staff responsible for overseeing and directing ITI travellers. Under the baseline scenario, airports wanting to participate in the ITI process would need to seek approval from the CBSA. The existing ITI process does not require that currently participating airports modify their leases in any manner or erect new, permanent infrastructure. Rather, under the existing process, the business case requires that airport authorities ensure that their designated holding area meets the CBSA’s criteria for ITI transit. Airports that are not currently approved may have to adjust their infrastructure in order to meet current criteria.

Regulatory scenario

The regulatory scenario implements a free-flow process for ITI transit in airports with approval to participate in ITI transit, where travellers can proceed to their departing flight without needing to interact with the CBSA, thus removing the need for ITI kiosks. This scenario is low-cost, provides flexibility for airport authorities, and allows the CBSA to identify in-transit passengers and confirm their departure using Advance Passenger Information and Air Exit Information.

Benefits

The proposed Amendments would allow the CBSA to implement a free-flow process for international transit that provides benefits beyond those currently realized by the CBSA, travellers, Canadian airport authorities, and airlines.

Traveller benefits

Regularizing the current pilot project would encourage growth in the volume of transiting travellers. Since the pilot project was instituted, the volume of international transiting travellers has increased due to the low level of complexity in transiting through these airports. It would present a more attractive flight route for passengers if they do not have to be fully processed. Along with the increased volume of transiting travellers, the proposed Amendments would enable a faster connection at airports and faster movement of travellers through the airport.

Economic benefits

Airports that currently operate the ITI pilot project would be able to obtain minor cost savings and repurpose their decommissioned ITI kiosks as Primary Inspection Kiosks. This would allow them to supplement current Primary Inspection Kiosk processes by using additional kiosks to process more travellers. They may also simply reduce the number of kiosks they are maintaining and operating. The proposed Amendments would also support economic competitiveness, as the free-flow transit process could be marketed to attract new markets and travellers to Canada.

Targeting and intelligence benefits

The proposed Amendments would increase operational efficiency in the targeting processes employed by the CBSA’s National Targeting Centre, as officers could shift their focus away from known transiting travellers and towards high-value business activities, such as risk assessment of travellers seeking to enter Canada. They would also improve operational readiness at airports of entry, since officers at the arriving airport would have greater awareness of whether a traveller requiring interception is in the process of transiting.

Moreover, the proposed Amendments to require new Advance Passenger Information and Air Exit Information data elements are expected to enable the CBSA to conduct compliance verification with a free-flow model for international transit, since the CBSA would be able to reconcile the associated inbound and outbound traveller data and confirm that a transiting traveller has complied with program conditions and departed Canada on their scheduled international flight.

Costs

The proposed Amendments are expected to impose less than $1 million per year in total costs to affected stakeholders.

Government IT changes

The costs associated with implementing the proposed Amendments would primarily fall on the CBSA, from IT changes to process “in-transit” data provided by commercial air carriers, displaying it within the CBSA’s Passenger Information System, and establishing the IT infrastructure to systematically reconcile Advance Passenger Information and Air Exit Information for compliance purposes; and IT development and required system changes to include the first point of foreign disembarkation and the date/time of arrival as prescribed Air Exit Information data elements.

Air carriers are already providing the Government of Canada with both passenger entry and exit data and may bear minor costs to create the ability to transmit “in-transit” and foreign disembarkation port data to the CBSA if the enabling IT infrastructure is not already in place within their system. They may also wish to perform confidence testing with the CBSA to ensure the new data is transmitting and displaying appropriately.

Government costs of updating and publishing the relevant Privacy Impact Assessment and Personal Information Bank

The CBSA would update and publish the relevant Privacy Impact Assessment and Personal Information Bank.

Collaboration with airlines

The CBSA would collaborate with air industry partners to implement the free-flow process for ITI transit in order to ensure that airport authority personnel are properly trained and that the airport authority is correctly posting signs directing travellers to the appropriate departure area. The CBSA and the airport authority would also jointly decommission existing ITI kiosks and implement the free-flow model. Since the cost of these activities would be minor, they are not monetized.

Government administrative tasks

The CBSA would bear administrative costs during the first year following the coming into force of the proposed Amendments related to updating the Entry/Exit and Advance Passenger Information Privacy Impact Assessments to include the addition of Free-Flow ITI; engaging with airport authorities that currently operate the ITI process, Transport Canada and regional CBSA operations to develop memoranda of understanding to ensure the international departure area of an airport is designed and operated in a manner that will satisfy the CBSA’s sterility and security requirements; sending notices to commercial air carriers to inform them of the coming into force of the proposed Amendments and confirming if any want to perform confidence testing; informing internal and external stakeholders of the new process; informing stakeholders of the new ITI data elements that would be available for targeting purposes; and drafting an Operational Bulletin for the regional CBSA offices.

Data transmittal by airlines

Air carriers are already providing the Government of Canada with both passenger entry and exit data and may bear minor costs to create the ability to transmit “in-transit” and foreign disembarkation port data to the CBSA if the enabling IT infrastructure is not already in place within their system. They may also wish to perform confidence testing with the CBSA to ensure the new data is transmitting and displaying appropriately.

Small business lens

The small business lens does not apply to this proposal, since it would only impact travellers and businesses that do not meet the definition of “small business” from the Policy on Limiting Regulatory Burden on Business, including commercial air carriers and airport authorities. Therefore, the proposal would not reduce or impose any new administrative or compliance burden on small businesses.

One-for-one rule

While the regulatory proposal would require commercial air carriers to collect and transmit information to the CBSA, this does not constitute an administrative burden, since the information would be used for operational purposes, including to confirm a traveller’s status as “in-transit” and facilitate systematic reconciliation with their corresponding Air Exit record.

Regulatory cooperation and alignment

The proposed changes to mandate additional Advance Passenger Information and Air Exit Information data elements are well aligned with international standards for these data sets, including the World Customs Organization, the International Civil Aviation Organization and the International Air Transport Association’s Advance Passenger Information Guidelines that identify a traveller’s transit status as an additional data element that may be collected by commercial air carriers. These guidelines also identify the first point of foreign disembarkation as an Air Exit Information data element. Moreover, the Passenger List Message Technical Implementation Annex specifies the manner and format in which commercial airlines should provide this information to governments and includes the proposed new Advance Passenger Information and Air Exit Information data elements within the messaging structure.

Canada’s international partners, including Australia, New Zealand, and the United States, have operationalized the technical recommendations (e.g. message structure and how it is displayed) from these guidelines and mandate the collection and provision of travellers’ in-transit status as part of their Advance Passenger Information programs.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that the proposed Amendments would not have a positive or negative environmental impact; therefore, a strategic environmental and economic assessment is not required.

Gender-based analysis plus

A preliminary gender-based analysis plus (GBA+) was completed, and it was determined that the proposed Amendments are not expected to have any GBA+ impacts.

Implementation

The proposed Amendments would come into force upon registration, as the CBSA does not expect any airlines or airports to need any advance notice of the regulations being made to implement the changes.

The CBSA has developed a Privacy Impact Assessment regarding the Entry Exit Initiative, and the protections detailed therein would apply to proposed new data elements. After the coming into force of the proposed Amendments, the CBSA would update and publish the relevant Privacy Impact Assessment and Personal Information Bank to reflect the new data elements that would be collected from commercial air carriers. The CBSA would work directly with airport authorities and airlines to ensure all new Advance Passenger Information and Air Exit Information data are received, and it would provide support, as required.

The CBSA would develop Standard Operating Procedures for use by the CBSA and Airport Authority personnel. The CBSA would work with airport authorities to establish memoranda of understanding, including defining roles and responsibilities and establishing protocols.

Once the memoranda have been signed, the CBSA would work with air industry partners to implement the free-flow process for ITI transit, which would include the CBSA obtaining assurance from airport authorities that their personnel are trained on the new flow, the airport authority is posting wayfinding signs to direct travellers to the appropriate departure area, and the airport authority and CBSA are working collaboratively to decommission existing ITI kiosks and implementing the free-flow model whereby all ITI travellers would be directed immediately to the designated holding area and would no longer be required to interact with a kiosk. The modification of the IT solution would be aligned with coming into force of the regulations.

Contact

Charlene Larose
Director
Traveller Policy Division
Traveller, Commercial, and Trade Policy Directorate
Strategic Policy Branch
Canada Border Services Agency
Email: CBSA.Traveller_Pol-Pol_voyageurs.ASFC@cbsa-asfc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council proposes to make the annexed Regulations Amending Certain Regulations Made Under the Customs Act (Transit Between International Flights) under paragraphs 93(5)(a)footnote a and 164(1)(i)footnote b and (j) of the Customs Act footnote c.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. They are strongly encouraged to use the online commenting feature that is available on the Canada Gazette website but if they use email, mail or any other means, the representations should cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Charlene Larose, Director, Traveller Policy Division, Traveller, Commercial and Trade Policy Directorate, Canada Border Services Agency, 191 Laurier Avenue West, 8th Floor, Ottawa, Ontario K1A 0L8 (email: CBSA.Traveller_Pol-Pol_voyageurs.ASFC@cbsa-asfc.gc.ca).

Ottawa, November 20, 2025

Janna Rinaldi
Acting Assistant Clerk of the Privy Council

Regulations Amending Certain Regulations Made Under the Customs Act (Transit Between International Flights)

Reporting of Imported Goods Regulations

1 (1) The long title of the Reporting of Imported Goods Regulations footnote 1 is replaced by the following:

Reporting of Imported Goods Regulations

(2) Section 1 of the Regulations and the heading before it are repealed.

2 The definition designated holding area in section 2 of the Regulations is replaced by the following:

designated holding area
means a room or other area that has been designated by the President for use by the following persons and that is physically separated from other rooms or areas so as to prevent those persons from exchanging goods with passengers or crew members who are not arriving in or leaving Canada:
  • (a) persons arriving in Canada who are in transit to another place in Canada and who will be required to present themselves at a customs office at that place in accordance with the Presentation of Persons (2003) Regulations,
  • (b) persons arriving in Canada who are in transit to a place outside Canada, and
  • (c) persons who are leaving Canada; (zone d’attente dĂ©signĂ©e)

3 Section 7 of the Regulations is replaced by the following:

7 (1) Goods in the actual possession of a person arriving in Canada aboard a commercial passenger conveyance who has as their destination a place outside Canada, and any goods being carried on board the same conveyance and forming part of their baggage, do not have to be reported, on condition that

(2) Goods in the actual possession of a person arriving in Canada aboard a commercial passenger conveyance who has as their destination another place in Canada at which there is a designated customs office, and any goods being carried on board the same conveyance and forming part of their baggage, may be reported at that designated customs office on condition that

(3) In paragraphs (1)(a) and (b), sterile transit area has the same meaning as in section 2 of the Immigration and Refugee Protection Regulations.

Passenger Information (Customs) Regulations

4 (1) Paragraph 5(d) of the Passenger Information (Customs) Regulations footnote 2 is replaced by the following:

(2) Paragraph 5(e) of the Regulations is replaced by the following:

Presentation of Persons (2003) Regulations

5 (1) The definition designated holding area in section 1 of the Presentation of Persons (2003) Regulations footnote 3 is replaced by the following:

designated holding area
means a room or other area that has been designated by the President for use by the following persons and that is physically separated from other rooms or areas so as to prevent those persons from exchanging goods with passengers or crew members who are not arriving in or leaving Canada:
  • (a) persons arriving in Canada who are in transit to another place in Canada and who will be required to present themselves at a designated customs office at that place in accordance with these Regulations;
  • (b) persons arriving in Canada who are in transit to a place outside Canada; and
  • (c) persons who are leaving Canada. (zone d’attente dĂ©signĂ©e)

(2) Section 1 of the Regulations is amended by adding the following in alphabetical order:

sterile transit area
has the same meaning as in section 2 of the Immigration and Refugee Protection Regulations. (espace de transit isolĂ©)

6 Paragraph 2(2)(b) of the Regulations is replaced by the following:

7 (1) Paragraph 3(1)(a) of the Regulations is replaced by the following:

(2) Subparagraph 3(1)(b)(i) of the Regulations is replaced by the following:

(3) Paragraph 3(1)(c) of the Regulations is replaced by the following:

Exit Information Regulations

8 Section 7 of the Exit Information Regulations footnote 4 is replaced by the following:

Prescribed information

7 The prescribed information that is to be given to the Agency under paragraph 93(1)(a) of the Act is the flight code that identifies the commercial carrier, the flight number of the conveyance, the first place outside Canada where persons or goods on board the conveyance disembark or are unloaded and the date and time of arrival of the conveyance at that place.

Coming into Force

9 These Regulations come into force on the day on which they are registered.

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