Latest Cross-border Shopping Limits Anger Retailers

Latest Cross-border Shopping Limits Anger Retailers

Canadians enjoy shopping and at the same time, getting a good bargain. So it was definitely some good news to everyone that American discount chain Target is setting up shop here in 2013.

Most Canadians cheered the new cross-border shopping limits set out in last week’s federal budget, wherein you can now bring back $200 worth of goods duty free, instead of $50, on 24-hour trips. The limit has been doubled for trips of 48 hours, all the way up to $800.

But many small business owners in border towns across the country are not exactly thrilled with the government’s new provision, which is quite the opposite.

“I don’t understand it,” says Marq Smith of Langley, B.C, who owns Western Powersports, a motorcycle store just a 10-minute walk from the U.S. boarder, “the government is supposed to be in our corner, not encouraging people to go south to spend their money. And they’re hurting themselves too, losing tax revenue. This doesn’t help us as Canadians at all. I can’t figure out the logic.”

Furthermore, more than a few retailers had already voiced their concerns about the new limits announced the day before.

"I am not terribly concerned about the cross-border shopping because we haven't changed the 24-hour rule,” said Finance Minister Jim Flaherty, who met with private sector economists in Ottawa on March 5, emphasizing that zero is still the allowance for duty-free goods if you’re out of Canada for less than 24 hours.

As for the changes, he mentioned that Canada is trying to “harmonize” its policies with those in the U.S.

However, it’s not only the prices that entice Canadians to shop in the U.S. It is also about the customer service which is known to be excellent at American retailers.

Posted by Melanie Mendoza on Thursday April 05 2012, 3:39 AM EST. Ref: Reuters. All trademarks acknowledged. Filed under Featured News, Shopping. Comments and Trackbacks closed. Follow responses: RSS 2.0