Canada discusses arrivals duty-free

Nicole Mezzasalma

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A proposal to implement arrivals duty-free is part of a year-long review of duty-free shops in the country

The implementation of arrivals duty-free stores is one of the proposals being considered as part of a year-long review of duty-free shops in the country by the Canada Border Services Agency (CBSA). The review aims to harmonise duty-free rules in Canada and make services more consumer-friendly, according to The Canadian Press news agency, and is now being discussed with airport authorities and retailers. Final decisions with regard to the proposals are expected in a few months.

Canadian duty-free regulations are not standardised. Border stores in Canada must buy 20% of their inventory from small and medium-sized manufacturers and distributors in the country with the exception of fragrances, liquor and tobacco. Airport duty-free shops, however, face no such restrictions. Meanwhile, airport authorities pay for tenders for new airport stores while the federal government foots tender bills for border stores.

In addition to the establishment of arrivals duty-free outlets, the Canadian government is also considering whether to abolish Canadian-content regulations; allow large corporations to own border stores, at present forbidden; permit more than one store at a location; and allow travel retailers to operate at railway stations and ferry terminals.

The proposal to implement arrivals duty-free stores in the country is supported by the Canadian Airport Council. Duty-free sales in Canada reached more than C$300m ($251m) in 2007.