The Canadian Government claims that changes to duty free rules will streamline industry procedures and reduce its costs and those of the industry.

 

It is promising that out-dated requirements and ‘processes’ will be eliminated and/or streamlined to benefit the industry, while allowing the Canada Border Services Agency (CBSA) ‘to better focus its resources on its core mandate of safety, security and the facilitation of legitimate trade and travel’.

 

It also adds that the CBSA will ‘continue to monitor compliance’ to ensure that duty free products are genuinely sold for immediate export only and do not re-enter the Canadian marketplace illegally. The CBSA adds that these and other changes follow ‘extensive consultations’ with external stakeholders.

 

The Honourable Steven Blaney, Canada’s Minister of Public Safety and Emergency Preparedness [see below] is backing the changes, which besides day-to-day administrative improvements, will also include lengthening operating licensing contract terms from the present five years to ten. Significantly, duty free shop owners will also no longer be required to notify the CBSA immediately upon receipt of goods.

 

GOVERNMENT PRAISES INDUSTRY RECORD

In a statement, Blaney said: “Changes to the Duty Free Shop Regulations will allow the duty free sector to continue to keep pace with today’s retail realities. They will also permit the CBSA to better focus its resources on safety, security and the facilitation of legitimate trade and travel.

 

“For the Canadian taxpayer, there is no requirement to impose strict regulations on duty free shops given their long-standing record of compliance.”

 

Peter Brain, President of the Frontier Duty Free Association welcomed the changes: “The Frontier Duty Free Association (FDFA) – which represents land border duty free shops across Canada – is very pleased that the government has completed its Strategic Review of our sector and will now implement related changes designed to improve the efficiency and effectiveness of store operations, to the benefit of government and duty free licensees.

 

“From the perspective of duty free licensees, completion of the review will enable FDFA Members to make long-term investments under a secure legal and regulatory framework, in response to intense current market challenges.”

 

There are currently 52 land border and international airport locations across Canada.