December 18 2014  |  Industry News

Canadian government simplifies business for duty free operators

By Wendy Morley

The Honourable Stevern Blaney, Canada’s Minister of Public Safety and Emergency Preparedness, recently announced changes to the government’s regulations that will reduce costs and administrative burden on the country’s 53 duty free operators at land border stores and in airports. The Canada Border Services Agency (CBSA) will also find its processes streamlined with the new changes, which eliminate outdated requirements. 

Among the changes are the lengthening of licensing terms from five to 10 years. In addition, duty free operators will no longer need to notify the CBSA immediately upon receipt of goods.

"Changes to the Duty Free Shop Regulations will allow the duty free sector to keep pace with today's retail realities. They will also permit the CBSA to better focus its resources on safety, security and the facilitation of legitimate trade and travel. For the Canadian taxpayer, there is no requirement to impose strict regulations on duty free shops given their long-standing record of compliance," says the honourable Steven Blaney, Canada's Minister of Public Safety and Emergency Preparedness.

Peter Brain, President of the Frontier Duty Free Association, adds, "The Frontier Duty Free Association (FDFA), which represents land border duty free shops across Canada, is very pleased that the government has completed its Strategic Review of our sector and will now implement related changes designed to improve the efficiency and effectiveness of store operations, benefitting both government and duty free licensees. Completion of the review will enable FDFA members to make long-term investments under a secure legal and regulatory framework, in response to intense current market challenges."

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