Free-flow transit for international connections

Summary#

The final rule titled Regulations Amending Certain Regulations Made Under the Customs Act (Transit Between International Flights) (SOR/2026-148) lets some international transit passengers move through Canadian airports without stopping for a Border Services officer or kiosk, as long as they stay in a controlled transit area. These regulations were registered on June 22, 2026 and were published in the Canada Gazette on July 1, 2026.

What it does#

• Aligns the way the rules describe transit areas by updating the definitions of designated holding area and adding the term sterile transit area across multiple rules.
  • A designated holding area is an airport room or space kept separate so transiting travellers cannot exchange goods with other passengers. A sterile transit area is an area that must be physically segregated from other travellers.
• Allows an international traveller who stays inside a designated holding area or a sterile transit area to transit without an in-person examination by a border officer or using an ITI kiosk.
• Requires commercial air carriers to provide extra passenger data in their advance and exit messages, including each person’s transit status and, for transiting travellers, their first destination outside Canada and that flight’s arrival date/time.
• Updates these specific regulations: Reporting of Imported Goods Regulations, Passenger Information (Customs) Regulations, Presentation of Persons (2003) Regulations, Exit Information Regulations, and the Immigration and Refugee Protection Regulations.
• Removes the need for some in-person customs reporting and kiosk processes when the traveller and their goods remain on board or are kept under customs control in the transit areas described above.

Who's affected#

• International transit passengers who connect through Canadian airports and do not intend to enter Canada.
• Airport authorities that operate or want to operate the International-to-International (ITI) transit process.
• Commercial air carriers that must send the expanded passenger and exit information.
• Canada Border Services Agency (CBSA), which will change IT systems and steps for targeting and compliance.
• The rules mainly affect the airports already running the ITI pilot (Vancouver, Toronto Pearson, Montréal–Trudeau) and any other airport that chooses to implement free-flow transit.

Why it matters#

• Faster connections: travellers who qualify can move to their onward flight more quickly and without stopping for a border kiosk or officer.
• Airport competitiveness: airports can market smoother international connections and may repurpose old ITI kiosks into general Primary Inspection Kiosks.
• Scale: the ITI pilot handled over 737,000 passengers in fiscal year 2024–2025 — about 2,000 a day on average and up to 5,000 a day in peak periods — so the change affects a large flow of travellers.
• Security and compliance: the CBSA will rely more on advance and exit data to confirm a person actually left on their onward flight. If someone leaves the designated area or misses their connection, they must still present themselves for examination.
• Costs: most implementation costs fall to the CBSA for IT changes; overall costs to stakeholders are estimated at less than $1 million per year.