The Canada Border Services Agency (CBSA) has been given the dubious honour of being named the worst government department for its “excessive” red tape and “unreasonable” import duty fees.
The Canadian Federation of Independent Business (CFIB) awarded the agency its 2024 Paper Weight Award this week—a ranking of the “worst examples of red tape” and “most absurd regulations” among all levels of government in Canada. The annual “award” is part of the organization’s Red Tape Awareness Week, which shines a light on inordinate levels of bureaucracy.
The CBSA was named the “winner” due to its “burdensome and unfair decision” that could force a small costume business to permanently close its doors.
The CFIB said the Costume Shoppe in Calgary is facing at least $100,000 in import duty fees after the CBSA changed the classification for imported themed costumes from “festive wear” to “fancy dress.”
She called the new import rules “silly” and “unreasonable.”
Under the new regulation, he must now pay an 18 percent duty fee, plus applicable taxes on costumes dating back to 2021. Mr. Schoel, who has more than 2,500 costumes in stock, must refile previous inventory, even if those goods are no longer being imported. And he can’t appeal the CBSA’s decision—not unless he pays first.
He has paid an initial installment of $6,000, but said the total tally could be anywhere from $100,000 to $200,000.
“It’s sort of like being told you committed a crime, going to jail for the term and then going into court to fight your case,” he told CTV. “In this case, I was asked to pay an amount without the opportunity to fight it. How ridiculous does that sound?”
Runners Up
The CFIB also recognized two other government agencies, who were named runners-up as part of its annual red tape awards.Health Canada was named a Paper Weight Award finalist in recognition of its plan to introduce a new cost-recovery process for the natural health products (NHP) industry. Getting a product into the Canadian market will now come with an increased level of paperwork and “excessive fees,” said CFIB.
The move garnered the federal agency second place in the red tape standings.
In third place is Finance Canada which has made payroll services subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The change means more paperwork for small businesses using payroll services and duplicates existing anti-money laundering controls used by banks.
“If the CBSA, Health Canada and Finance Canada had first considered how their new rules would impact small businesses, we wouldn’t be in this regulatory mess,” Ms. Kwiecinski said. “We’re asking these government organizations to do the right thing and fix the fallout.”
