Highlights

  • The Canadian government has issued a remission order to forgive unadjusted publication fees for the Canada Gazette due to an oversight in not applying required inflation adjustments.
  • Regulatory amendments under the Customs Act and Customs Tariff have been made to modernize the import process, transitioning to electronic communication and payment systems.
  • The Canada Grain Regulations have been updated for better regulatory flexibility and consistency.
  • The Canada Turkey Marketing Levies Order and the Canadian Chicken Marketing Levies Order have been amended to extend the expiration date of levies to March 31, 2025.
  • Amendments to the Domestic Substances List involve adding and deleting certain substances under the Canadian Environmental Protection Act, 1999.
  • The Financial Security (Electronic Means) Regulations set rules for providing financial security electronically for customs-related activities.
  • The Immigration and Refugee Protection Regulations have been adjusted to require Mexican nationals to obtain a Temporary Resident Visa for travel to Canada.
  • The full launch of the CBSA’s Assessment and Revenue Management project is set for May 13, 2024, to modernize accounting practices for imported goods.
  • Amendments to the Special Economic Measures (Russia) Regulations have been made in response to Russia’s actions in Ukraine, including expanding sanctions and prohibiting certain imports.
  • Canada has banned the import of certain diamonds from Russia to cut off revenue and align with G7 measures.
  • Additional sanctions have been imposed on Russian individuals involved in human rights violations, particularly in the case of Alexey Navalny.

Canada Forgives Unadjusted Publication Fees for the Canada Gazette

The Canadian government has issued a remission order to forgive certain fees related to the publication in the Canada Gazette that were not adjusted for inflation as required by law for the fiscal years 2019–2020 and 2020–2021. The fees in question were supposed to be annually adjusted based on the Consumer Price Index (CPI), but due to an oversight, the mandatory increases were not applied to external clients. The total uncollected amounts are $3,181.38 for 2019–2020 and $4,488.69 for 2020–2021.

The Canada Gazette, managed by Public Services and Procurement Canada (PSPC), is the official publication for government notices and legal requirements. While most clients are internal to the government, there are external clients, such as law firms and banks, which make up a small portion of the revenue.

The Service Fees Act mandates annual fee adjustments in line with the CPI, but PSPC did not raise fees for those years because revenues were sufficient to cover costs, and they were unaware of the obligation to apply CPI increases to external fees. Upon realizing the oversight, PSPC took steps to prevent future occurrences and has been applying CPI increases since the 2021–2022 fiscal year.

Issuing a remission order is considered the most reasonable solution since the costs of collecting the missed fees from external clients would be higher than the amounts due. The administrative burden of calculating and collecting the fees, along with potential reputational risks, outweighs the benefits of collection. Additionally, the Canada Gazette was able to operate without the additional revenue from the CPI adjustments. No consultations were held with affected parties due to the nature of the proposal. [Source]

Modernization of Canada’s Import Processes with Electronic Customs Regulations

The Canadian government has enacted regulatory amendments to modernize and streamline the processes for importing commercial goods into Canada. These changes, made under the Customs Act and Customs Tariff, support the transition to electronic communication between the Canada Border Services Agency (CBSA) and trade chain partners (TCPs), such as importers and customs brokers. The amendments facilitate electronic submission of documents, electronic payment of duties, and electronic provision of financial security, replacing outdated paper-based methods.

New regulations, titled Financial Security (Electronic Means) Regulations, have been introduced to specify the requirements for TCPs to confirm or provide financial security electronically. This shift aims to simplify the process and improve the CBSA’s ability to recover owed duties.

Additionally, the amendments introduce simplified billing cycles with two main billing periods and a harmonized payment due date for all import programs. This change is expected to reduce administrative burdens and confusion over multiple payment deadlines. A correction period is also established, allowing TCPs to make penalty-free corrections to their accounting documents before the payment due date.

The regulatory changes are expected to result in net benefits for businesses through increased efficiencies, reduced costs from eliminating paper processes, and improved revenue management for the government. The one-for-one rule applies, indicating a decrease in administrative burden on businesses. The regulations will come into force on May 13, 2024, coinciding with the launch of the CBSA Assessment and Revenue Management (CARM) project’s second release.

The CBSA has engaged with stakeholders throughout the development of these regulations and the CARM project. The changes are expected to have positive environmental outcomes due to reduced paper usage and have been designed considering accessibility and inclusivity for all impacted groups. The CBSA will monitor the implementation of these changes to ensure they deliver the intended benefits and will enforce compliance through established mechanisms. [Source]

Enhancements to Canada Grain Regulations for Improved Flexibility and Consistency

The Canadian Grain Commission (CGC) has made amendments to the Canada Grain Regulations to enhance regulatory flexibility, harmonize terminology, and ensure consistency across provisions. Key changes include:

  1. Chapter 2 of the CGC’s Sampling Systems Handbook and Approval Guide is now incorporated by reference, allowing for more efficient updates to the handbook.

  2. The term “Tariffs” in Part 4 of the English version of the Regulations has been changed to “Charges” to align with the terminology used in the Canada Grain Act (CGA).

  3. Section 29.1 has been updated to ensure language consistency with subsection 50(1) of the CGA, specifying that each licensee operating an elevator must post the current schedule of charges.

  4. Section 48 clarifies that licensed terminal elevators can only receive eastern grain without inspection or weighing if it is not delivered by or on behalf of a producer, closing a potential gap in producer protection.

  5. The retention period for official grain samples has been extended to a minimum of six months and a maximum of 120 months, aiding the CGC in grain sample management and research.

  6. Spelling irregularities for designated grains such as “fababean” and “canaryseed” have been corrected to “faba bean” and “canary seed,” respectively, and “chick peas” has been updated to “chickpeas” to align with common usage.

  7. The subheading in Part 5 and related terminology have been updated to “Final Quality Determination” to reflect current operational practices.

These amendments do not impose additional administrative costs or burdens on businesses and are not expected to impact small businesses in Canada. [Source]

Extension of Canada Turkey Marketing Levies Until 2025

The Canadian Turkey Marketing Agency has amended the Canada Turkey Marketing Levies Order (2019) to set a new expiration date for the levies. The amendment specifies that the levies will cease to have effect on March 31, 2025. This change comes into force on the day it is registered. The National Farm Products Council has approved this amendment, confirming it is necessary for the implementation of the marketing plan that the Agency is authorized to implement. [Source]

Amendment to Canadian Chicken Marketing Levies Order Sets New Expiration Date

The Canadian Chicken Marketing Levies Order has been amended to establish a new expiration date for the levies on chicken marketing. The amendment specifies that the current levies will cease to be effective as of March 31, 2025. This change was made by Chicken Farmers of Canada under the authority of the Farm Products Agencies Act and the Chicken Farmers of Canada Proclamation. The National Farm Products Council has approved the amendment after determining it was necessary for the implementation of the marketing plan that Chicken Farmers of Canada is authorized to implement. The amended Order will come into force on March 31, 2024. [Source]

Amendment to Canada’s Domestic Substances List: Substance Deletion and Addition

The Minister of the Environment of Canada has issued an amendment to the Domestic Substances List (DSL) under the authority of the Canadian Environmental Protection Act, 1999. The amendment involves changes to Part 1 of the DSL: one substance with the identifier 1646857-41-4 N is being deleted, and another substance with the identifier 1646857-41-1 N is being added in numerical order. The order will take effect on the day it is registered. A Regulatory Impact Analysis Statement is available in conjunction with another order. [Source]

Canada Expands Domestic Substances List with New Chemical Additions

The Minister of the Environment has issued an Order amending the Domestic Substances List (DSL) under the Canadian Environmental Protection Act, 1999. The amendments include the addition of several new substances to the DSL. Specifically, one substance has been added to Part 1, and four substances have been added to Part 3 of the List. These substances are identified by their unique numerical codes and chemical descriptions, such as reaction products of 12-Hydroxyalkanoic acid with various compounds, and a polymer made from a heteropolycyclicdione and other chemical components. The Order will take effect on the day it is registered. A Regulatory Impact Analysis Statement accompanies the Order but is not included in this summary. [Source]

Addition of Six Substances to Canada’s Domestic Substances List and Update of One Identifier

The Canadian Environmental Protection Act, 1999 (CEPA) has been amended to include six new substances (five chemicals and polymers and one living organism) to the Domestic Substances List (DSL) after they were assessed and met the criteria for addition. Additionally, the identifier for one chemical already on the DSL has been updated. Substances not listed on the DSL are considered new and are subject to assessment to identify potential risks to the environment and human health. The DSL is an inventory of substances that are already in the Canadian marketplace and is updated regularly.

The addition of these substances to the DSL means they are no longer subject to the New Substances Notification Regulations for chemicals, polymers, or organisms. This amendment facilitates business access to these substances as they will no longer be subject to certain regulatory requirements. The orders to amend the DSL do not impose any new regulatory requirements, thus having no impact on modern treaty rights or obligations, and do not result in any incremental compliance costs for stakeholders or enforcement costs for the Government of Canada. The orders are administrative in nature and are part of the federal obligation under CEPA.

The orders are now in force, and no implementation plan is required. Compliance with the orders is enforced according to the Canadian Environmental Protection Act: compliance and enforcement policy. Any suspected violations can be reported to the Enforcement Branch of the Department of the Environment. [Source]

Financial Security Regulations for Customs in Canada

The Financial Security (Electronic Means) Regulations establish rules for providing financial security related to the Customs Act and Customs Tariff in Canada. Security must be either a deposit or a written agreement, with certain terms deemed integral, such as the security provider’s obligation to pay if the debtor defaults. Security providers must be approved financial institutions or entities authorized to operate in Canada.

All security must be given electronically through a system specified by the Minister, with exceptions allowed for inadequate infrastructure, disasters, or other impractical situations. Security agreements are considered given when specific information is entered into the system, including details like the agreement identifier, parties involved, and the amount of security.

If a debtor fails to pay what they owe, the Minister can demand payment from the security provider, who must pay within 60 days or provide information to dispute the demand. The Minister will then review and decide on the demand. Payments made by security providers do not absolve debtors of their liabilities.

Existing security agreements, except those under the Accounting for Imported Goods and Payment of Duties Regulations, remain valid until their expiration or termination, even after these regulations come into force. The regulations are effective from the day sections 304 and 330 of the Budget Implementation Act, 2022, No. 1 are in force or the day after registration if registered later. [Source]

Canada Reinstates Visa Requirement for Mexican Nationals to Curb Unfounded Asylum Claims

The Canadian government has amended the Immigration and Refugee Protection Regulations to adjust the visa status for Mexican nationals due to a significant increase in unfounded asylum claims. Previously, Mexican citizens were exempt from requiring a Temporary Resident Visa (TRV) and could travel to Canada with an Electronic Travel Authorization (eTA). However, the amendments now require Mexican nationals to obtain a TRV for travel to Canada, with exceptions for those who have held a Canadian TRV in the past 10 years or who hold a valid U.S. non-immigrant visa and are traveling by air.

The changes aim to balance the facilitation of legitimate travel for Mexican nationals with the integrity of Canada’s immigration and asylum systems. The amendments also ensure that eTAs held by Mexican nationals who currently hold a valid work or study permit remain valid.

The cost of implementing these changes is estimated at $1.0 billion over 10 years, including government expenses and potential impacts on tourism and the air industry. However, the benefits, primarily from reduced asylum claims and associated costs, are estimated at $6.6 billion, resulting in a net benefit of $5.6 billion.

The government consulted with various departments and agencies, and no significant impacts on small businesses or disproportionate gender-based effects were identified. The amendments are set to come into force on February 29, 2024, and measures are being taken to inform affected individuals and minimize service disruptions. Compliance will be enforced through existing immigration procedures, and service standards for processing TRV and eTA applications have been established. [Source]

Canada Sets May 2024 for Full Launch of CBSA’s CARM Project to Modernize Border Services

The Canadian government has set May 13, 2024, as the date for the full launch of the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) project, which will modernize and simplify the CBSA’s accounting practices for imported goods. This initiative aims to enhance service delivery through digitalization and support the Government of Canada’s efforts to improve national security and facilitate the free flow of goods and persons.

The CARM project will replace legacy systems and processes with a new platform that will allow detailed financial statements, increase accountability, improve asset stewardship controls, and reduce trade barriers. To implement CARM, amendments to the Customs Act (CA) and associated regulations were necessary, which were introduced through the Budget Implementation Acts of 2021 and 2022. These amendments provide the legal framework for electronic security and payment processes essential for CARM’s functionality.

The amendments to the CA that will come into force include provisions for the accrual of interest on duties owed, the authority to regulate interest-free periods for duties payable, terms and conditions for financial security provided under the CA, and regulations for the time, manner, and place of payments to the Receiver General.

The CBSA has engaged with stakeholders since 2018 to ensure readiness for the CARM project, including consultations, webinars, and proactive communications. Concerns about readiness for the originally planned October 2023 launch led to the decision to delay the launch to May 2024. This delay will provide stakeholders with more time to prepare and familiarize themselves with the new system and regulations.

The CBSA has conducted system testing and simulations to ensure CARM’s readiness and continues to support stakeholders through a comprehensive engagement strategy. The transition to CARM is not expected to have differential impacts based on demographic factors and has no financial implications for stakeholders or the government. The regulatory changes supporting CARM were consulted on publicly, and the feedback received has been considered in the implementation process. [Source]

Canada Expands Sanctions on Russia, Prohibits Certain Ship Docking and Exports

The Canadian government has amended the Special Economic Measures (Russia) Regulations in response to Russia’s continued aggression towards Ukraine. The amendments include the removal of the definition of “designated person” and the prohibition of docking or passage through Canada of any ship registered in Russia or associated with Russian entities or individuals listed in the sanctions schedules. The regulations now allow for certain financial transactions necessary for Canadians to transfer accounts, funds, or investments held by listed persons, as well as for loan repayments and enforcement of security related to those loans.

The amendments also expand the list of individuals and entities under sanctions, adding 10 individuals and 153 entities that support Russia’s military efforts or help Russia evade sanctions. This includes those involved in the Russian oil sector, military production, and insurance services.

Additionally, the export of explosives and certain goods that could be used in weapon production by Russia is now prohibited. This includes goods classified under specific Harmonized Commodity Description and Coding System codes, such as processing units, parts for antennas, ball bearings, telescopic sights, and instruments for aeronautical navigation, among others.

The amendments also align with the authority under the Special Economic Measures Act to list any person outside Canada who is not Canadian, allowing for the listing of third-country persons complicit in violating Ukraine’s sovereignty or helping Russia circumvent sanctions.

The regulatory impact analysis states that the amendments aim to impose further costs on Russia, undermine its military capabilities, and align Canada’s measures with international partners. The cost to the Canadian government for enforcing these prohibitions is minimal, and the impact on Canadian businesses is expected to be limited due to the already low level of trade with Russia. The amendments are in line with actions taken by Canada’s allies and do not require a strategic environmental assessment or have significant gender-based analysis plus impacts. Enforcement will be carried out by the Royal Canadian Mounted Police and Canada Border Services Agency, with penalties for non-compliance including fines and imprisonment. [Source]

Canada Expands Sanctions on Russian Diamonds to Support Ukraine

Canada has amended its Special Economic Measures (Russia) Regulations to further penalize Russia for its invasion of Ukraine by prohibiting the import, purchase, or acquisition of certain diamonds mined or produced in Russia. This ban applies to natural diamonds weighing one carat or more and aligns with similar measures taken by other G7 members. The ban is designed to cut off a significant source of revenue for Russia, as the country is a major global diamond producer and exporter.

The amendments include a prohibition on the indirect import of Russian diamonds, which are diamonds mined in Russia but exported, processed, and/or polished in third countries. The ban targets specific Harmonized Commodity Description and Coding System (HS) codes related to unsorted diamonds and non-industrial diamonds, whether worked or not.

The ban does not apply to personal effects carried by individuals entering Canada for personal or immediate family use. The amendments also clarify existing prohibitions on luxury imports from Russia, including diamonds and related products.

The G7 countries, which account for 70% of the world diamond market, have committed to banning Russian diamond imports to reduce Russia’s war funding. The direct ban has been in place since January 1, 2024, and the indirect ban is expected to start on March 1, 2024, for diamonds one carat and larger, with plans to extend it to diamonds half a carat and larger by September 1, 2024.

The ban may impose additional costs on Canadian importers, who will need to provide documentation proving the non-Russian origin of their diamonds. However, the impact on Canadian imports from Russia is expected to be minimal due to existing sanctions and the removal of Most Favoured Nation status from Russia.

The amendments are part of Canada’s broader commitment to supporting Ukraine and are in line with actions taken by other G7 members. Enforcement will be carried out by the Canada Border Services Agency (CBSA), which may request documentation from importers to verify the origin of diamonds. Importers can use a diamond origin attestation form or a G7 certificate to facilitate border clearance.

Violations of the regulations can result in significant fines or imprisonment. The amendments are not expected to have significant environmental effects or impact vulnerable groups significantly. The measures are designed to ensure that Canada does not become a diversion market for Russian diamonds banned in other countries. [Source]

The Canadian government has amended the Special Economic Measures (Russia) Regulations to impose sanctions on six additional Russian individuals involved in human rights violations, particularly in relation to the case of Alexey Navalny. Navalny, a prominent Russian opposition figure, faced persecution, imprisonment, and eventually death in a penal colony known for its harsh conditions and human rights abuses. Canada, condemning the treatment of Navalny and other dissenters by Russian authorities, has joined international partners in demanding accountability and a transparent investigation into Navalny’s death.

The new sanctions prohibit any transactions with the listed individuals, block their property dealings in Canada, and make them inadmissible to the country under the Immigration and Refugee Protection Act. The measures are intended to send a clear message of support for democracy and human rights in Russia and to align with actions taken by Canada’s allies. The government did not conduct public consultations on these amendments due to the urgency and to prevent asset flight.

The cost of enforcing these sanctions is expected to be minimal, with limited impact on Canadian businesses and citizens, as the individuals targeted are believed to have minimal connections to Canada. Financial institutions will need to update their monitoring systems to comply with the new sanctions, which may incur some compliance costs. The amendments are enforced by the Royal Canadian Mounted Police and Canada Border Services Agency, with penalties for non-compliance including fines and imprisonment. The Trade Commissioner Service will assist Canadian entities in understanding the impact of these sanctions. [Source]

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