I told my friend about this new policy as he was arriving at the airport. He asked the agent and she advised him that this option is only available for domestic travel.

To the person that asked whether you could just drop your bag on the conveyer belt that is after customs, the answer is that you have to go to an agent b/c it's an international flight.

Keep in mind this information is coming from an Air Canada agent.... they've been known to just make stuff up so take it for what it's worth.