## Company Profile 1000613437 Ontario Inc. (website: scarbroughglobal.com) appears to operate as a Canadian customs brokerage/trade services firm (doing business as Scarborough Global). Public lead data shows an email contact at nbrenie@scarbroughglobal.com. As a customs broker the firm likely offers customs clearance, eManifest/electronic data filing, importer-of-record support, tariff classification, and trade compliance services for Canadian importers (including courier/low-value shipments and containerized importers). Scale is not public from the lead record; web presence implies a small-to-mid sized broker serving cross-border import customers in Canada. ## Pain Points 1) Client compliance risk from CARM enforcement and importer-of-record changes: brokers are increasingly having to advise clients on registration, accurate valuation (shift toward last-sale), and timely accounting to avoid Late Accounting Penalties and AMPS. 2) Poor advance data from e-commerce / LVS shippers: incomplete or low-quality commercial invoices and line-item data are triggering inspections, refusals and higher inspection fees (post-April 1 fee increases), creating more manual remediation work for brokers. 3) Supply-side disruption and higher landed costs: blank sailings, capacity management and episodic port congestion (Vancouver) are causing schedule unreliability and rising ocean rates — importers ask brokers for alternative sourcing or routing advice they may not be set up to provide. ## Intel Summary === MULTI-DIMENSION RESEARCH === === 1. PROBLEM FRAMING — CBSA REGULATION CHANGES 2026 (E‑COMMERCE, LOW‑VALUE IMPORTS, ACI/PENALTIES) === **1.1. Structural changes affecting e‑commerce & low‑value imports** - **CARM go‑live and importer‑of‑record reform (effective 1 January 2026)** - Amendments to section 17 of the Customs Act (“importer of record”) entered into force on **1 January 2026**, shifting legal responsibility more explicitly to the party causing the goods to be imported, including non‑resident e‑commerce sellers. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai)) - CBSA notice highlights that importers, customs brokers and authorized couriers (CLVS participants) must now handle release and accounting via CARM; failure to register and account correctly exposes traders to **Late Accounting Penalties (LAPs)** and interest from the **January 2026 Statement of Account onward**. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai)) - **Valuation and “last‑sale” focus for e‑commerce** - Canada’s forward regulatory plan for 2026‑2028 explicitly targets **value‑for‑duty reform** as current rules “do not reflect modernized business practices” driven by e‑commerce and complex supply chains. CBSA plans to modernize valuation to align with contemporary e‑commerce business models. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/agency-agence/actreg-loireg/frp-ppr/index-eng.html?utm_source=openai)) - Trade commentary notes that CBSA is **shifting from “first sale” to “last sale” valuation**, meaning duty is increasingly expected to be calculated on the final sale price to the Canadian consumer rather than an earlier intra‑group transfer price. This materially raises assessable customs value for many direct‑to‑consumer e‑commerce models. ([tradecouncil.org](https://tradecouncil.org/americas-overhaul-trade-rules-for-2026-canada-targets-e-commerce-brazil-launches-sweeping-tax-and-customs-reform/?utm_source=openai)) - **Low‑Value Shipment (LVS) & CLVS environment** - The CUSMA‑based **LVS threshold remained at CAD 150 for duty and CAD 40 for GST/HST** (for most U.S./Mexico origin goods), but CBSA has been tightening risk controls on the **courier low‑value shipment stream**. ([cbsa.gc.ca](https://www.cbsa.gc.ca/services/cusma-aceum/lvs-efv-eng.html?utm_source=openai)) - CBSA’s 2025 performance report describes an **“E‑Commerce Low‑Value Inspection System”** moving toward limited deployment to enhance risk targeting in the courier LVS channel, especially for compliance risks such as under‑valuation, misclassification and sanctions‑related goods. ([publications.gc.ca](https://publications.gc.ca/collections/collection_2025/asfc-cbsa/PS35-9-2025-eng.pdf?utm_source=openai)) **1.2. Penalties and enforcement signals around advance commercial information** - **Administrative Monetary Penalties (AMPS) and ACI / advance data** - Updated CBSA policy (D17‑5‑1, May 2021 but still operational) frames AMPS as the principal mechanism to penalize non‑compliance with trade legislation, including failures in **pre‑arrival / advance commercial information (ACI/eManifest)** submissions (late, incomplete or inaccurate data). ([cbsa-asfc.gc.ca](https://cbsa-asfc.gc.ca/publications/dm-md/d17/d17-5-1-eng.pdf?utm_source=openai)) - Combined with CARM, non‑compliance can now trigger: - AMPS for **incorrect or missing data** (e.g., value for duty, origin, tariff classification). - **Late Accounting Penalties** and interest for delayed payment post‑January 2026 (CARM SOA). ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai)) - **Courier Low Value Shipment–related fee and penalty exposure** - Customs Notice 26‑04 (February 24, 2026) increased many CBSA‑administered fees effective **1 April 2026**, including customs special service charges that cover **courier low‑value shipments** and warehousing, by **25.3%** where fees had not changed since April 2019. ([ey.com](https://www.ey.com/en_gl/technical/tax-alerts/canada-border-services-agency-adjusts-certain-fees-for-inflation-and-gst-hst?utm_source=openai)) - This raises the baseline cost of inspections, after‑hours services and storage. For e‑commerce flows that trigger CBSA interventions (e.g., because of incomplete advance data or valuation flags), the financial impact per shipment is now higher. - **Practical enforcement posture** - Public case anecdotes in early 2026 underscore CBSA’s strict interpretation that documentation must support proper **risk assessment**. One example involved refusal of entry for a container where the commercial invoice was “home‑made” and contained errors, leading CBSA to deem the shipment “unable to be properly risk assessed” and order it returned to origin. ([reddit.com](https://www.reddit.com/r/legaladvice/comments/1rc2zub/canada_border_services_agency_refused_entry_of_a/?utm_source=openai)) - In the e‑commerce LVS context, similar logic is likely to be applied to **poor‑quality line‑item data**, inconsistent values, or vague product descriptions in advance courier data; that in turn increases AMPS and delay risk. **1.3. Strategic implications for low‑value e‑commerce shippers** - **Risk of “cheap‑invoice” models** - The combination of: - **Last‑sale valuation** (higher dutiable value), ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/agency-agence/actreg-loireg/frp-ppr/index-eng.html?utm_source=openai)) - Expanded **AMPS powers and CARM revenue focus**, ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai)) - And enhanced targeting on E‑Commerce LVS means business models built on systematic under‑valuation and vague HS codes face materially higher detection and penalty risk. - **Who is on the hook?** - The post‑January 2026 importer‑of‑record rules make it harder to push liability onto Canadian consumers; CBSA emphasizes that the party “who causes the goods to be imported” (typically the non‑resident seller or marketplace) can and should register in CARM and assume compliance obligations directly. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai)) **Sources — Dimension 1:** ([cbsa.gc.ca](https://www.cbsa.gc.ca/services/cusma-aceum/lvs-efv-eng.html?utm_source=openai)) --- === 2. MARKET EVENTS — CANADA IMPORT VOLUMES, PORT THROUGHPUT, CONGESTION & FREIGHT RATE TRENDS 2026 === **2.1. Port of Vancouver — 2025 performance feeding into 2026** - **Record cargo volumes and container growth** - Media coverage of Vancouver Fraser Port Authority data indicates total cargo in **2025 exceeded 158.4 million tonnes**, above 150.4 million tonnes in 2023 and 158.4 million tonnes in 2024. ([reddit.com](https://www.reddit.com/r/vancouver/comments/1rpgy2d/port_of_vancouver_handles_record_amount_of_cargo/?utm_source=openai)) - Container traffic through Vancouver in 2025 reached **~3.8 million TEU**, up **~9% year‑on‑year versus 2024**, setting a new record for containerized cargo. ([reddit.com](https://www.reddit.com/r/vancouver/comments/1rpgy2d/port_of_vancouver_handles_record_amount_of_cargo/?utm_source=openai)) - **Operational challenges and congestion narrative** - Public discussion around Vancouver’s performance continues to reference earlier reports ranking it poorly on port efficiency and concerns about congestion, crime and inland transport bottlenecks. Stakeholders blame **natural disasters and hinterland rail/truck constraints** for extended vessel turnaround and dwell times. ([reddit.com](https://www.reddit.com/r/britishcolumbia/comments/1rpwxly/nonus_trade_propels-port-of-vancouver-to-record/?utm_source=openai)) - While no 1H 2026 Vancouver congestion index is yet published, the combination of record 2025 volumes and lingering inland logistics issues implies **elevated risk of episodic congestion** if 2026 demand spikes (e.g., peak season, weather disruptions). **2.2. Port of Montreal — container throughput and modal mix** - **2025 results reported April 23, 2026** - Port of Montreal’s 2025 annual meeting revealed: - Overall **tonnage fell slightly** to **12.3 million tonnes** from **12.58 million tonnes** in 2024 (**‑2.2%**). ([port-montreal.com](https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/annual-meeting-2026?utm_source=openai)) - **Container volumes in TEU increased 3.62%** year‑on‑year through December 2025. ([port-montreal.com](https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/annual-meeting-2026?utm_source=openai)) - Separate figures indicate total container volume around **1.5 million TEU in 2024**, positioning Montreal as Canada’s second‑largest container gateway. ([en.wikipedia.org](https://en.wikipedia.org/wiki/Port_of_Montreal?utm_source=openai)) - **Implications** - Montreal appears to be **gaining share in higher‑value, time‑sensitive container flows**, even as bulk trades soften. For importers this gives some room to diversify routings away from Vancouver where congestion risk is higher. **2.3. Blank sailings & global freight rate trends relevant to Canada (early 2026)** - **Ocean freight rates rising despite soft volumes** - Market commentary in late March 2026 reports **spot container rates increasing by roughly USD 400–600 per FEU** since around March 20, 2026, despite low global volume. ([reddit.com](https://www.reddit.com/r/FreightRight/comments/1s2qic5/ocean_rates_up_as_volumes_continue_to_sink/?utm_source=openai)) - Key drivers cited: - Aggressive **blank sailings**, especially on Asia–North America East Coast and North Europe routes, to prop up rates. - Capacity management rather than underlying demand growth. ([reddit.com](https://www.reddit.com/r/FreightRight/comments/1s2qic5/ocean_rates_up_as-volumes_continue-to_sink/?utm_source=openai)) - **Relevance to Canadian trades** - Canada’s Asia trade via Vancouver/Prince Rupert is exposed to **trans‑Pacific capacity cuts and blank sailings**; even if Canadian import volumes are flat to down in early 2026, shippers are likely facing: - Higher all‑in spot rates than Q4 2025; - Reduced schedule reliability; - Greater risk of rolled cargo when carriers consolidate sailings. - **Import volume directional signals, 2026 to date** - No full‑year 2026 Canadian port statistics yet, but: - The **Port of Montreal** reports positive container growth through 2025 (+3.62% TEU) but lower overall tonnage, implying shift toward containerized/general cargo at expense of bulk. ([port-montreal.com](https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/annual-meeting-2026?utm_source=openai)) - **Vancouver** data points to record 2025 container volumes (≈3.8m TEU, +9%) setting a high base; assuming mid‑single‑digit demand growth, 2026 could exceed **4.0m TEU** if capacity and inland logistics hold, but carriers’ blank sailings may temper realized volume. (Inference based on 2025 results plus current carrier behavior.) ([reddit.com](https://www.reddit.com/r/vancouver/comments/1rpgy2d/port_of_vancouver-handles-record-amount-of-cargo/?utm_source=openai)) **2.4. Strategic implications for importers into Canada** - **Routing and scheduling** - With **blank sailings** and capacity reductions, especially ex‑Asia, importers into Canada should: - Build in **longer lead times** and higher safety stock for Q2–Q4 2026; - Consider **alternate routings** via U.S. West Coast or East Coast/USEC with rail to Canada, or routing diversified between Vancouver and Montreal. - **Cost outlook** - Rate hikes of **USD 400–600/FEU** on key lanes translate into **5–15% increases in all‑in landed ocean cost** for many low‑margin agri‑food commodities, depending on existing rate levels; this may be magnified when combined with **higher CBSA fees from April 1, 2026** at the border. ([reddit.com](https://www.reddit.com/r/FreightRight/comments/1s2qic5/ocean_rates_up_as-volumes_continue-to_sink/?utm_source=openai)) **Sources — Dimension 2:** ([port-montreal.com](https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/annual-meeting-2026?utm_source=openai)) --- === 3. TIMING SIGNALS — KEY CANADIAN CUSTOMS COMPLIANCE DEADLINES & CBSA INITIATIVES 2026 === **3.1. Hard dates & transition windows** - **1 January 2026 — Importer‑of‑record changes in force** - Order in Council fixes **January 1, 2026** as the date on which section 307 of the Budget Implementation Act 2022 (amending section 17 of the Customs Act on importer‑of‑record) comes into force. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai)) - From this date, entities that “cause goods to be imported” (including NRI e‑commerce sellers) must be prepared to be the **legal importer** and manage CARM compliance. - **CARM financial enforcement milestones (Q1 2026)** - Overdue balances on **January 2026 Statements of Account** are now subject to **late‑payment penalties and accrued interest**, visible on the **February 2026 SOA**. ([fedex.com](https://www.fedex.com/en-ca/shipping-services/international/regulatory/carm.html?utm_source=openai)) - This is effectively the first full enforcement cycle under CARM: late or inaccurate accounting transitions from “soft landing” to monetary impact. - **3 March 2026 — Deadline for CIG web‑service security updates** - CBSA e‑services guidance instructs Electronic Data Interchange (EDI) and portal clients using the **Customs Internet Gateway (CIG)** to “take action before **March 3, 2026**” to update web‑service standards to current security protocols. ([cbsa.gc.ca](https://www.cbsa.gc.ca/eservices/menu-eng.html?utm_source=openai)) - Non‑compliance risks connectivity failures for eManifest, accounting, and export reporting submissions. - **1 April 2026 — CBSA fee increases take effect** - Customs Notice 26‑04 (February 24, 2026) increased many CBSA‑administered fees effective **1 April 2026**, including: - **25.3% fee increase** where amounts had not changed since 1 April 2019; - Higher charges for customs broker licensing exams; - **Customs special services charges** (including CLVS‑related inspections) and warehousing/storage. ([ey.com](https://www.ey.com/en_gl/technical/tax-alerts/canada-border-services-agency-adjusts-certain-fees-for-inflation-and-gst-hst?utm_source=openai)) **3.2. 2026–2028 forward regulatory and systems changes** - **Forward Regulatory Plan 2026‑2028 — advance data / courier LVS & valuation** - CBSA’s latest Forward Regulatory Plan (published 2026) highlights several intended initiatives: ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/agency-agence/actreg-loireg/frp-ppr/index-eng.html?utm_source=openai)) - **Advance Electronic Data for Goods Imported via the Courier Low Value Shipment Program** — formalizes advance data requirements for courier LVS flows, including possible new **penalty structures** for non‑compliance (timing not fixed but consultations indicated during 2026). - **Modernization of value‑for‑duty rules**, targeting e‑commerce and complex supply chains (see Dimension 1). - **Single Window Initiative (SWI) addendum changes — late 2026 deployment** - The Canadian Society of Customs Brokers (CSCB) reports that after a long pause due to CARM, CBSA and multiple partner government agencies (DFO, ECCC, GAC, Health Canada, NRCan, PHAC, Transport Canada) plan **a series of SWI updates for implementation in late 2026**. ([cscb.ca](https://cscb.ca/en/article/cscb-webinar-2026-single-window-addendum-changes?utm_source=openai)) - These will affect **SWI OGD data requirements and codes** at the time of release. While detailed HS lists are still to be confirmed, regulated sectors (food safety, plant/animal health, environmental and controlled goods) should expect **schema and data‑element changes** in 2026–27. - **eManifest & portal guidance updates (2025–26)** - CBSA updated the **eManifest Portal Guide** in January 2025 (Version 2.2), with changes to status semantics (e.g., “Deconsolidated”), indicating ongoing technical fine‑tuning rather than new 2026 policy, but users must ensure they align with the revised definitions to avoid reporting errors. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/prog/manif/portal-portail/guide-eng.pdf?utm_source=openai)) **3.3. Broader CBSA 2026–27 enforcement and initiative themes** - **Departmental Plan 2026–27** - CBSA’s 2026–2027 Departmental Plan outlines: ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/agency-agence/reports-rapports/rpp/2026-2027/full-plan-plan-complet-eng.html?utm_source=openai)) - Continued reliance on **eManifest** and advance data analytics for risk targeting; - Use of new powers under the **Proceeds of Crime (Money Laundering) and Terrorist Financing Act** to counter trade‑based financial crime, including **regulatory investigations, AMPS and seizures**; - Ongoing **Market Watch** initiatives and trade remedy enforcement, with more proactive data use (including FIRM and ACROSS) to detect undervaluation and dumping. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/sima-lmsi/i-e/fgm2026/fgm2026-in-eng.pdf?utm_source=openai)) - **Supply Chains Act (forced labour / child labour) reporting — 2026 cycle** - The 2026 reporting cycle under Canada’s **Fighting Against Forced Labour and Child Labour in Supply Chains Act** opened with updated CBSA/ESDC guidance. While not a customs declaration deadline per se, in‑scope entities importing goods into Canada must publish a **2025‑year report in 2026**, with no minimum value threshold for imports. ([dlapiper.com](https://www.dlapiper.com/en/insights/publications/2026/01/canada-launches-2026-reporting-cycle-and-updates-guidance-for-supply-chains-act?utm_source=openai)) - This is increasingly integrated with border risk assessment for high‑risk commodities (e.g., apparel, seafood, cocoa, palm oil). **3.4. Timing takeaways for operational planning** - **Near‑term (Q1–Q2 2026)** - Ensure CARM registration and payment processes are stable ahead of **first penalty‑bearing SOAs (Jan/Feb 2026)**. ([fedex.com](https://www.fedex.com/en-ca/shipping-services/international/regulatory/carm.html?utm_source=openai)) - Verify that all CIG‑based integrations were updated before **3 March 2026** to avoid connectivity disruptions. ([cbsa.gc.ca](https://www.cbsa.gc.ca/eservices/menu-eng.html?utm_source=openai)) - **Mid‑term (Q2–Q4 2026)** - Bake **April 1, 2026 fee increases** into logistics budgets and pricing. ([ey.com](https://www.ey.com/en_gl/technical/tax-alerts/canada-border-services-agency-adjusts-certain-fees-for-inflation-and-gst-hst?utm_source=openai)) - Track consultations and draft regulations on **courier LVS advance data and valuation** (Forward Regulatory Plan), and adjust e‑commerce data models earlier rather than later. ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/agency-agence/actreg-loireg/frp-ppr/index-eng.html?utm_source=openai)) - Prepare IT and broker interfaces for **late‑2026 SWI schema changes**, especially in highly regulated food, agri‑inputs and bio‑products. - **Longer‑term (2027+)** - Expect CBSA to rely increasingly on **CARM + eManifest/SWI data fusion** for enforcement in e‑commerce and low‑value shipments, with higher expectations for granular product and party data as a pre‑condition for smooth clearance. **Sources — Dimension 3:** ([cbsa-asfc.gc.ca](https://www.cbsa-asfc.gc.ca/agency-agence/actreg-loireg/frp-ppr/index-eng.html?utm_source=openai)) Sources: • Customs Notice 25-32: End of CARM Transition Measures and Coming Into Force of Importer of Record Changes to the Customs Act https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai • Customs Notice 25-32: End of CARM Transition Measures and Coming Into Force of Importer of Record Changes to the Customs Act https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai • Forward Regulatory Plan: 2026 to 2028 https://www.cbsa-asfc.gc.ca/agency-agence/actreg-loireg/frp-ppr/index-eng.html?utm_source=openai • Americas Overhaul Trade Rules for 2026: Canada Targets E-Commerce, Brazil Launches Sweeping Tax and Customs Reform - The International Trade Council https://tradecouncil.org/americas-overhaul-trade-rules-for-2026-canada-targets-e-commerce-brazil-launches-sweeping-tax-and-customs-reform/?utm_source=openai • Increase to low-value shipment thresholds and other changes https://www.cbsa.gc.ca/services/cusma-aceum/lvs-efv-eng.html?utm_source=openai • Canada Border https://publications.gc.ca/collections/collection_2025/asfc-cbsa/PS35-9-2025-eng.pdf?utm_source=openai • ISSN 2369-2391 https://cbsa-asfc.gc.ca/publications/dm-md/d17/d17-5-1-eng.pdf?utm_source=openai • Customs Notice 25-32: End of CARM Transition Measures and Coming Into Force of Importer of Record Changes to the Customs Act https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai • Customs Notice 25-32: End of CARM Transition Measures and Coming Into Force of Importer of Record Changes to the Customs Act https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-32-eng.html?utm_source=openai • Increase to low-value shipment thresholds and other changes https://www.cbsa.gc.ca/services/cusma-aceum/lvs-efv-eng.html?utm_source=openai • Canada Border Services Agency adjusts certain fees for inflation and GST/HST | EY - Global https://www.ey.com/en_gl/technical/tax-alerts/canada-border-services-agency-adjusts-certain-fees-for-inflation-and-gst-hst?utm_source=openai • Canada Border https://publications.gc.ca/collections/collection_2025/asfc-cbsa/PS35-9-2025-eng.pdf?utm_source=openai • Port of Vancouver handles record amount of cargo, bolstered by China https://www.reddit.com/r/vancouver/comments/1rpgy2d/port_of_vancouver-handles-record-amount-of-cargo/?utm_source=openai • Port of Vancouver handles record amount of cargo, bolstered by China https://www.reddit.com/r/vancouver/comments/1rpgy2d/port_of_vancouver-handles-record-amount-of-cargo/?utm_source=openai • Non-U.S. trade propels Port of Vancouver to record cargo volumes https://www.reddit.com/r/britishcolumbia/comments/1rpwxly/nonus-trade-propels-port-of-vancouver-to-record/?utm_source=openai • Results from 2025 operations: Building Tomorrow’s Economy https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/annual-meeting-2026?utm_source=openai • Results from 2025 operations: Building Tomorrow’s Economy https://www.port-montreal.com/en/the-port-of-montreal/news/news/press-release/annual-meeting-2026?utm_source=openai • Port of Montreal https://en.wikipedia.org/wiki/Port_of_Montreal?utm_source=openai • Ocean Rates Up as Volumes Continue to Sink https://www.reddit.com/r/FreightRight/comments/1s2qic5/ocean_rates_up_as-volumes_continue-to_sink/?utm_source=openai