NEWS ROUND-UP Canada retailers warn on cross-border DF changes


Adjusting Canada’s ‘de minimis threshold’ to match the US’s $800 duty free allowance for cross-border shipments could impact Canadian land border duty free’s competitive advantage, TRBusiness understands. US policymakers are pushing Canada to


up its duty free de minimis threshold from the current $20 limit [applied to international goods that consumers can purchase online without paying import duties] as part of ongoing North American Free Trade Agreement (NAFTA) talks. Canadian duty free retailer sources have


indicated to TRBusiness that the debate surrounding de minimis is a complex one. One source said any changes to


regulation should consider the complex differences governing tax laws between online and offline businesses in a way that does not adversely affect the competitive advantages gained by traditional retailers. “We already face tremendous price


competition from the US for our core products in bricks and mortar stores, and there is no doubt online retail is a threat for any non-controlled products (i.e liquor) that


can easily be sold and distributed online,” said the source. “As with domestic retail, we have to


ensure that the high costs of operating a duty free shop do not become a weakness where less controlled domestic retailers, online or offline, hav e great advantages. “It is a changing world so


change is unavoidable to some degree, and there is a threat to duty free.” Separately, they said pegging the


allowance level to the US’s could prove ‘damaging’ to Canada, where tax revenues can efficiently leverage different tax and social policies. Another source commented: “We have


heard only that the US side would like Canada to raise its limit from $20 to $800, but we have not heard how they propose to go about doing this. “If the proposal is simply that Canada


grant US-based e-retailers a tax and duty free sales threshold forty times greater than it currently is, it would of course come at the cost of Canadian retailers. The Retail Council of Canada has been


very clear explaining this to policy and decision makers in Ottawa.” The Retail Council of Canada recently


commissioned a PwC study that claims the move could lead to a dent worth billions of dollars and the loss of jobs in Canada’s retail industry. There have also been claims that raising


the threshold could unfairly benefit online giants such as Amazon and eBay, who are able to avoid some of the taxes and costs that Canadian retailers have to pay. “In the US there are definite tax loopholes


for online retailers that give them a price advantage over bricks and mortar retailers, for example, sales tax is not charged by many online retailers,” confirmed a source.


New Muscat Airport to start retail operations in March


Commercial operations at Oman’s New Muscat Airport are due to begin on 20 March 2018, the Sultanate of Oman’s Ministry of Transport and Communications has announced. The formal opening of the much-


heralded, but delayed passenger terminal [slated to open before the end of last year – Ed] was announced via Twitter by the transport ministry, confirming a tip off provided to TRBusiness‘ during last month’s MEADFA Conference held in Dubai. “It’s been decided that the commercial


operation of the New Passengers Terminal Building in #MCT_airport will be on Tuesday, 20th of March 2018, therefore all the incoming & outgoing flights will be allocated to the new airport,” read


the Twitter post. Responding to the announcement via Twitter, Oman Air said: “We congratulate the Ministry of Transport and Communication for all the great work and efforts made in getting the new terminal at Muscat International Airport ready.” Muscat Duty Free [a joint venture between


Aer Rianta International Middle East and Oman Air] will operate the 5,300sq m duty free area when the $1.8bn facility starts business. The new airport replaces the existing


43-year old facility with a new terminal building comprising a total gross floor area of 344,995sq m.


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