New tenders expected in Canada

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Following the award of the duty-free licence at the Douglas border crossing in British Columbia, Canada's Frontier Duty Free Association (FDFA) expects further tenders at selected border locations by the end of the year

FDFA president Julian Lewin told DFNO that the Canada Customs and Revenue Agency (CCRA) had pinpointed two locations in Ontario and Quebec for retail development.
"There are two small crossings where the CCRA is seeking to issue duty-free licences," said Lewin. "They are not big locations like Douglas, but places where traffic levels are significant. I hope the government will issue the tenders by next winter."

Lewin expressed satisfaction at the conduct of the Douglas tender. "The process was rigorous, open and unbiased - what the FDFA has advocated all along. We're looking forward to serving the public at that very busy crossing, and the new operation will make a big difference to the Canadian border business."

As revealed in the newsletter DFNI Extra, Canadian industry veteran Michael Beler won the Douglas tender through his company Douglas Crossing Duty Free, and now has 90 days to secure the lease with landowner the Semiahmoo First Nation Band.

FDFA's efforts to secure a moratorium on Canada's controversial tobacco tax have reached an impasse after finance minister John Manley turned down the association's proposal. "We received a letter from the minister last month saying that the government did not accept our arguments for a moratorium for duty-free retailers," explained Lewin. "Nor did they accept our argument for indexing. Right now that door has been slammed shut."
But Lewin added that the retirement of Canadian prime minister Jean Chretien later this year may add fresh impetus to the association's cause. "There will be a leadership election in November, and we are going to take every opportunity that political change may present. We have several border MPs who are very supportive of duty-free, so the campaign is not over yet."