No Taxes and Duties if the Queue is Long Enough

I have just read an article Canadian businesses fuming as border guards let shoppers skip fees.

I have not done any cross border shopping, but I wrote a short post about it Cross-border shopping (a sort of travel).

I wonder why Canada Border Services Agency (CBSA) does not implement a system of paying the duties online. You declare the goods at the border and you pay online later, lets’ say 72 hours, simple and efficient.

Some highlights of the article:

The Revenue Canada policy adopted in 1999 allows border guards to waive-through travellers if the goods they’ve purchased would yield less than $3 in federal taxes and duties. Fees on larger purchases can be waived if it’s believed that pulling the traveller over to collect would cause “unacceptable” border delays or if “interdiction activities are in progress.” The policy leaves it open to managers to use their discretion in other situations. Things to consider, according to a fact sheet, include the level of traffic at secondary inspection and the number of parking spaces that are available.

The documents, however, suggest there are “instances even under ideal traffic and staffing conditions” in which “relatively large amounts of revenue goes uncollected.” Finance Canada, which appears to take a harder line on waive-throughs says it’s “difficult” to determine the economic impact since CBSA doesn’t track the amount and type of goods that are being waived-through.

However, it appears from the documents that the CBSA nonetheless recognizes that inconsistency can “seriously erode” its “credibility and public image.” It also admits it could undermine NEXUS, its “trusted traveller” programs, since border guards often take a “hard line” with them for minor infractions.

“The same travellers could very much anticipate being waived with significantly higher value purchases were he/she not using he program,” briefing notes argue.

The CBSA seems to conclude that while some discretion is necessary, a “clear statement” is also needed to ensure waive-throughs are only conducted under specific circumstances and that they aren’t applied to individuals who go well over the allowable limits.

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