In response to increasing concerns about the cross-border movement of restricted and prohibited goods, the Government of Canada is taking action to strengthen its border security measures. The 2024 Fall Economic Statement proposes a $1.3 billion comprehensive border security package for Public Safety Canada, the Canada Border Services Agency (CBSA), the Communications Security Establishment, and the Royal Canadian Mounted Police. In connection with this package, proposed amendments to the Customs Act (Canada) will grant the CBSA new authority to inspect goods intended for export at certain facilities. These new measures empower CBSA officers to enter carrier facilities and warehouses to examine these shipments for items such as illegal firearms, illegal drugs, stolen vehicles, and other illicit goods.
For businesses in the logistics sector, including carriers and sufferance warehouse owners and operators, compliance will be mandatory. The amendments will require carriers, warehouse operators and shippers to provide CBSA officers with access to facilities and adequate accommodation to carry out inspections. This initiative builds on existing efforts to curb illegal activity, including smuggling and auto theft, while responding to U.S. concerns about Canadian exports. With significant new resources being directed to CBSA, impacted companies should prepare for increased oversight as part of Canada’s broader commitment to securing the flow of goods across its borders, including by ensuring that they have their own diligence processes and procedures in place, and that their contracts properly address any additional risks and costs that may arise as a result of these inspections, particularly if any illicit goods are discovered.
Read the full 2024 Fall Economic Statement for more details. Should you have any questions regarding these proposed changes, please contact any member of Miller Thomson’s Transportation & Logistics Team.
