Canadian operators voice concerns over bureaucracy and security

John Rimmer

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The Frontier Duty Free Association annual convention started in Quebec yesterday, with the traditional operators' meeting raising several contentious issues

Government bureaucracy and security concerns dominated the agenda at a Canadian border operators meeting on the opening day of the annual Frontier Duty Free Association convention in Quebec on Sunday. The meeting featured presentations from Canada Border Services Agency vice-president Pierre Richard and duty-free shop programme director Doug Waldie.

Richard addressed the group and explained the newly formed organisation's goals, insisting that the operators' concerns were important to the government. Operators voiced fears over congestion at the border and Richard vowed to keep lines of communication open.

Waldie provided an update on regulatory issues, in particular a controversial form required to process locally manufactured goods. Operators were keen to see the G116 document abolished as it is disproportionately time-consuming for them to fill in, but Waldie was adamant that the form was necessary and would remain in place.

Waldie also argued for two full-scale audits a year for all operators. The suggestion caused much discussion and concern, with operators arguing that such a move was unrealistic. Waldie agreed to reassess the audit package.

Other proposals included more regular site visits and a new approach to GST collection. Operators suggested that as they pay GST and are immediately paid it back, the tax should not be collected from them at all. Waldie pledged to look into the suggestion.

Waldie went on to reveal the top selling categories at Canadian border stores and airports this year. At border shops, liquor and wines represent C$51.7m, 36.4% of total sales. Tobacco stood at C$37.2m or 26.2% total sales. Fragrances and cosmetics were third with C$22.1m, 15.3% of total sales.

At airports fragrances and cosmetics topped the sales table with C$40.8m, 32.6% of total sales. Liquor sales stood at C$34.4m or 27.02% of the total. Tobacco was third with 23.9m, representing 18.77%. Some operators suggested that tobacco figures should be split into total sales and tax paid in order to better reflect the losses duty-free retailers have incurred since the introduction of an export tax on domestically-produced tobacco products in 2001.