CANADA. The Government of Canada is to raise the limits for Canadian duty free allowances, bringing them in line with those of the US. The news came in the latest Federal Budget announced by Finance Minister Jim Flaherty on Thursday.
Under the government announced changes, the new Canadian duty free customs allowances – effective 1 June – for travellers will be C$200 for trips after 24 hours (four times the current limit of C$50) and C$800 after 48 hours (double the existing limit).
The previous two-tiered allowance system is said to have created confusion among the travelling public, and was cited as a factor in building traffic congestion at Canadian borders.
The Minister said: “We will harmonize our duty and tax exemptions for 24- and 48-hour trips to match levels for US citizens. This measure will ease congestion at our borders.”
The Frontier Duty Free Association (FDFA) – representing Canada’s land border duty free industry – has hailed the change, which it believes will reduce border congestion during peak periods and thereby help improve tourism visits to Canada over the long term.
FDFA Executive Director Laurie Karson noted: “Today, our industry is grateful for our government’s decision to harmonize the allowance system – a positive policy decision that will improve the current border traffic congestion.”
The Canadian duty free industry will continue to promote to Canadians that they can shop at Canadian duty free stores before they cross the border to the US, said the FDFA.
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