First weekend for increased U.S. shopping limits; long border lines expected
Posted Jun 3, 2012 06:26:15 AM.
This article is more than 5 years old.
Long border waits are expected this weekend, as Canadian cross-border shoppers will be allowed to bring back more duty-free goods from their trip to the States.
The new limit has now officially come into effect, meaning for a 24-hour trip you can now spend $200 duty free – or four times the old limit.
Meanwhile, for a 48-hour stay in the U.S.A, returning Canadians will now be allowed to bring back a significant $800 of duty-free goods.
Peacebridge duty-free manager Bonnie Gates says the new rules will see a big increase in the number of Canadians shopping south of the border.
“I think Canadians are getting a lot more selective on how they spend their money, they want to get the best value for their money, so they’re investigating items and products they need and trying to locate the best price,” Gates said.
“So if it is in the U.S., they will search it out over there now that they have higher exemptions to come home with.”
While cross-border shoppers are cheering the increase in exemption, many Canadian retailers are worried.
David Wilkes, from the Retail Council of Canada, says the new exemption limit will hurt many Canadian businesses, especially those closest to the border.
“We’ve received over 1,100 letters from retailers across the country who employ hundreds of thousands of Canadians, that these increased exemptions are going to provide more of an opportunity for Canadians to take their dollars over the border,” Wilkes said.
He added that the challenge Canadian retailers face are higher costs such as import tariffs.
For example, items like skates and running shoes are taxed 18 per cent in Canada as compared to nearly zero for American retailers.
“Groceries and gas we all know are a lot cheaper over in the U.S., so a lot of Canadians are making the trip weekly over there just because they’re getting more value for their money,” Gates added.
Wilkes says the retail council is asking the government to change tariffs so Canadian retailers can compete with American retailers on a level playing field.
Finance Minister Jim Flaherty’s office said the new limits were set to match those applied to U.S. travellers returning from Canada.
The new rules are expected to cost the federal government $13 million this fiscal year.
