Order Fixing January 1, 2026 as the Day on Which Section 307 of the Budget Implementation Act, 2022, No. 1 Comes into Force: SI/2024-50

Canada Gazette, Part II, Volume 158, Number 22

Registration
SI/2024-50 October 23, 2024

BUDGET IMPLEMENTATION ACT, 2022, NO. 1

Order Fixing January 1, 2026 as the Day on Which Section 307 of the Budget Implementation Act, 2022, No. 1 Comes into Force

P.C. 2024-1106 October 11, 2024

Her Excellency the Governor General in Council, on the recommendation of the Minister of Public Safety and Emergency Preparedness, under section 331 of the Budget Implementation Act, 2022, No. 1, chapter 10 of the Statutes of Canada, 2022, fixes January 1, 2026 as the day on which section 307 of that Act comes into force.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

The Order will bring into force section 307 of the Budget Implementation Act, 2022, No. 1 (BIA 2022) enacted on June 6, 2022.

Objective

The objective of this Order is to have the amendments to subsections 17(3) and 17(4) of the Customs Act take effect on January 1, 2026.

Background

The Canada Border Services Agency (CBSA) is responsible for collecting duties and taxes on imported commercial goods on behalf of the Government of Canada.

To resolve the ambiguity between which party is liable for the payment of duty and taxes on imported goods, subsections 17(3) and 17(4) of the Customs Act were amended by way of BIA 2022 to define the term “importer of record” and assign this entity joint liability in relation to the payment of duties and taxes on imported goods.

Implications

The coming into force of section 307 of the BIA 2022 on January 1, 2026, means the amendments to subsections 17(3) and 17(4) of the Customs Act will take effect.

The amendments to the Customs Act will allow the Government of Canada to collect customs duty owed to the Crown by providing trade chain partners and consumers with certainty and predictability concerning liability for e-commerce importations.

The January 1, 2026, coming-into-force date will allow ample time for importers and intermediaries to adjust their operating models and for the CBSA to develop guidance for the industry.

Consultation

In November 2022, a general consultation was launched at the Border Commercial Consultative Committee (BCCC), followed by four topic-specific sessions with key trade chain partners throughout the first two quarters of 2023.

The engagement process gave a diverse representation of stakeholders the opportunity to share their respective views with the CBSA. Stakeholders indicated that an imminent coming into force of these amendments to the Customs Act would add to the existing pressures associated with the implementation of the CBSA Assessment and Revenue Management initiative.

These consultations informed the CBSA of the benefit of a deferred coming into force of these amendments until January 1, 2026. Furthermore, in advance of that date, the CBSA will issue comprehensive policy guidelines.

Contact

Valerie Dinis
Acting Director
Commercial and Trade Policy Division
Traveller, Commercial, and Trade Policy Directorate
Strategic Policy Branch
Canada Border Services Agency
Email: CBSA.OCT/CECO.ASFC@cbsa-asfc.gc.ca