Staff shortages, a “self-assessment” system and incomplete or incorrect paperwork mean the Canada Border Services Agency doesn’t know whether or not it is collecting all customs duties owed on goods being brought into the country.
Due to lax paperwork, the border agency and Global Affairs failed to levy $168 million of customs duties on about $131 million worth of quota-controlled (including supply-managed) goods in Canada in 2015, such as dairy products, chicken, turkey, beef and eggs.
Some goods brought in duty-free under the Duties Relief Program were sold inside Canada despite the fact the supply-management system requires that they be exported. Six importers had their licences suspended after a 2016 compliance spot-check found all six had been diverting products into the Canadian market. Click here to read more.