Summary of Key Points:

• "183 day rule" and Returning Resident Permits are eliminated;
• permanent residents are entitled to obtain a 5 year renewable Permanent Resident Card as evidence of their permanent resident status;
• new immigrants will be issued a PR Card within 180 days of arrival in Canada;
• Records of Landing will still be useable as evidence of permanent resident status, but as of December 31, 2003 airlines will require the PR Card as clear evidence the person is still a permanent resident of Canada (a "status document"), and therefore the PR Card will become necessary for travel back to Canada unless the person is from a visa-exempt country and can enter Canada without a visa, or can travel to the USA, and present themselves at a Canadian port of entry to assert permanent resident status on arrival;
• permanent residents must make an application to obtain or renew a PR Card. The application must be made in Canada and will require a "guarantor" and two Canadian references who have known the person, and documentation such as details of departures from Canada, and original provincial indentity documentation such as a health card, driver’s license or student card.
• persons outside of Canada without a PR Card after Decemer 31, 2003 may not be able to re-enter easily, and may be required to apply for and obtain a travel document from a Canadian visa office overseas. Travel documents must be issued if the permanent resident meets the residency requirement during the previous 5 years and was physically present in Canada at least once in the last 365 days before the application. Special exemptions may be sought on humanitarian and compassionate grounds including considerations of the best interests of any children in Canada, or where a timely appeal is made to the Immigration Appeal Division, to obtain the travel document to facilitate the return to Canada even if the residency requirement has not been met;
• the residency test under the proposed rules requires at least 730 days (i.e. 2 years) of physical presence accumulated in Canada within the previous 5 years. This means that permanent residents could safely remain outside of Canada for up to 3 years in a 5 year period ;
• provision is made to allow employees of Canadian businesses working overseas for that business to be given credit for time outside of Canada in such circumstances, thereby extending how long they may remain outside of Canada and still meet the residency test.

The Permanent Resident Card (PR Card) provisions are in some ways an improvement over the previous law. The pervious law required permanent residents to remain in Canada at least 183 days in a 12 month period, or obtain a Returning Resident Permit (which was available in only limited circumstances), in order to maintain permanent resident status. The new law does away with the so-called '183 day rule', which creates a presumption that a person has abandoned their permanent resident status if they stay outside of Canada over 183 day in a 12 month period. The new PR Card will give permanent residents much more freedom for extended travel without risking their status. However, there are downsides as well.

Permanent residents of Canada will now be issued a PR Card, which will have a validity of 5 years and which is considered evidence of their legal permanent resident status and right to return and remain in Canada. Not having a valid PR Card will not mean you are not a permanent resident - the card does not confer status. Holding a PR Card however creates a presumption of valid permanent resident status. Not having a PR Card creates a negative presumption that the person is not a permanent resident of Canada.

Persons already with permanent resident status are not required to apply for the PR Card - technically they will still be able to rely on their paper Record of Landing while in Canada. However, they must still meet the new residency requirements, and as of December 31, 2003 airlines will absolutely insist to see a valid PR Card before boarding passengers as permanent residents destined back to Canada, essentially making this a mandatory document for permanent residents when traveling abroad. The PR Cards will be issued to new immigrants after arrival in Canada, and the proposed regulations require that they be issued within 180 days to an address provided at the time of landing.

Those already in Canada who need to apply for or renew the PR Card must provide a "guarantor" or make a declaration in lieu of guarantor, plus provide details of their employment or studies, addresses over the 5 years, details of absences from Canada, etc..

This is because permanent residents still have to comply with a residency requirement in Canada during a 5 year period in order to apply for or renew the PR Card. The new Act provides that the permanent resident must be physically inside of Canada at least 730 days in a 5 year period (i.e. a cumulative period of 2 years). Therefore, it is permissible to remain outside of Canada for up to 3 years during the 5 year period, and still be able to renew the PR Card.

The Act and regulations also provide for specific circumstances where a permanent resident may remain outside of Canada over 3 years (i.e. less than 2 years of physical residence in Canada required during a 5 year period) and still be eligible to renew the PR Card. Most notably are full-time employees of a Canadian business requiring them to be overseas. The business must be legitimate, generating revenue and being carried out in anticipation of a profit. Businesses incorporated solely for residency purposes will be ineligible.

The PR Card application can be submitted in Canada while overseas, but must be picked up in person in Canada at the appointed time, with presentation of appropriate identification.

Persons outside of Canada without a PR Card after June 28, 2002 may not be able to re-enter easily, and may be required to apply for and obtain a travel document from a Canadian visa office overseas in order to return to Canada and apply for the PR Card. "Travel documents" must be issued if the permanent resident meets the residency requirement during the previous 5 years and was physically present in Canada at least once in the last 365 days before the application. If the residency test cannot be met, special exemptions may be sought on humanitarian and compassionate grounds including considerations of the best interests of any children in Canada, or where a timely appeal is made to the Immigration Appeal Division, to obtain the travel document to facilitate the return to Canada.

Permanent residents who can travel to Canada without the need for a visa (they are citizens of a visa exempt country for travel to Canada), or who can travel to the United States, are fortunate in that they can present themselves at a Canadian port of entry without dealing with airlines refusing to board them on flights to Canada without a PR Card. Permanent residents must be admitted to Canada at a port of entry, but may be subject after arrival to legal proceedings to have them removed from Canada as permanent residents if they have not met the residency test. Legal representation and taking advantage of appeal rights will be very important in these circumstances, as there are strategies available to avoid losing permanent resident status if this situation develops.

It is recommended that people who are currently permanent residents of Canada and who may not be able to meet the new residency test seek professional advice and make plans to safely re-enter Canada and accumulate the necessary residency according to the test, and apply for a PR Card to facilitate their overseas travel in future.

It is also recommended that permanent residents if possible seek to qualify for and obtain Canadian citizenship and a Canadian passport as soon as possible, to avoid potential problems associated with applying for or renewing a PR Card. Proposed changes to the Citizenship Act will in future require 3 years of physical presence in Canada in the previous 6 years in order to be eligible for citizenship.

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