Date : March 23, 2014
A briefing note presented to the Prime Minister showed, Canada's border guards routinely waive taxes and duties on goods bought by travellers in the U.S. The briefing note was prepared last June, but confirms the suspicion's of Canadian retailers, that the Canada Border Services Agency is too lenient with cross-border shoppers. The note indicates that Border services often waive duties and taxes and it is costing the economy millions.
In 2012, The Federal Government raised duty-free limits for travellers coming back from a foreign country, to $200 worth of goods for trips of between one and two days, and $800 for longer trips. Same day trips don't receive any exemptions, and Canada's Border Service Agency indicated that they do enforce a stricter limit on same-day trips, as the potential for abuse is higher, but often amounts under 50$ don't require duty.
In 2012, Canadians made 55 million trips to the U.S. and 33 million of those trips were completed on the same day. With dollar amounts at near par and a newly raised limits on duty-free goods stateside bargain-hunting was encouraged.
Border guards collect about $150 million in taxes and duties from travellers each year. But the agency doesn't track the amounts it waives, so there's no way to assess how much of a break cross-border shoppers are getting, or how much revenue the government is losing.
I think it's awesome to be able to go stateside to shop! In reality it does hurt retailers in Canada, but most items are half the price. Last fall, the money I saved on an Under Armor hoodie, I bought a pair of sneakers too. When I rolled up to the border, all I basically paid was the tax. There isn't any duty or taxes on grocery items, so to take a day and go shopping stateside, it's well worth the trip for shoppers!
http://www.ctvnews.ca/canada/customs-officers-routinely-waiving-duties-taxes-on-some-u-s-goods-briefing-note-1.1742205
Agree with you that it is nice to be able to shop in the states for cheaper prices. I watched a show about the drastic price differences for products in Canada vs. the US. Even purchasing online costs more for Canadians! In the show I watched, a lady was purchasing a play pen for her child; when she compared the price in the US to Canada, the price was over double for Canadians!
ReplyDeleteIt is sad that Canadians are always going over to the US to shop, and it certainly has a negative affect on our retailers, however, with such big price gaps, how can you blame us? I think it would be good if Canadian retailers to be able to purchase items at a similar rate to the US. I understand that taxes and duties must be charged on products coming into Canada, but I do not see why it is necessary for prices to be so high.
I agree Kelly that the savings are worth the trip. I hope that the lenience does not have to large of an effect on Canadian consumers. I would hate to see the government take away the pleasure of making the trip across the border.
ReplyDeleteI do not go shopping in the states that often, but my best friend does. I hear her say all the time "well I could get that in the states for cheaper". I realize it is nice to take a trip once in a while, but it is also really nice to support home and give back the money in our own community, I also know that some people lie about the goods they bring across the boarder, and that too is dangerous. I would personally never lie at the boarder, nor do I think it is fair that some people get across without paying the proper duties. Do I think they should become more strict at the boarder? No, any stricter and they would strip search everyone who drives through the boarder. But I do think that they should be more aware of how much people ACTUALLY buy, not how much they SAY they buy,
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