The transition to the new duty and tax collection system of the Canada Border Services Agency (CBSA), which began on Friday, is worrying those involved in cross-border trade. Several of them asked for the launch of the portal to be postponed, at least until April 2025.
The Press revealed in June that the Contributions and Revenue Management (GCRA) system, in the works since 2010, had accumulated significant failures and cost overruns. The digital tool, valued today at more than 700 million, was initially planned to cost 408 million and be launched no later than July 31, 2021.
Read the article “More than half a billion for a portal “riddled with errors””
Last April, the launch of the portal was postponed from May 13 to October 21 by the Canada Border Services Agency after around forty organizations identified flaws in the system developed by Deloitte, and errors in the calculations.
Since Friday and until October 21, “a transfer period” of old systems to GCRA is taking place. After this migration, which marks a point of no return, all importers will have to be registered in the customer portal to transmit their import declarations and payments directly online to the CBSA.
Same as same
However, the problems raised six months ago have not been corrected, according to industry players who, in recent days, testified before the Standing Committee on International Trade (CPCI) of the House of Commons. On Wednesday, despite opposition, the CPCI gave its approval to the deployment of the GCRA system.
“All the outstanding issues that existed at the time remain outstanding,” Kim Campbell told the parliamentary committee on behalf of the Canadian Association of Importers and Exporters.
“The system continues to have a number of shortcomings […] that prevent customs brokers and their importing clients from accurately and efficiently accounting for goods,” warned the Canadian Society of Customs Brokers. The organization advocates for the adoption of the new tool on a voluntary basis for a period of 12 to 18 months.
We are concerned, we are disconcerted. Our members have received very little training. They didn’t use the system, and they couldn’t test it.
Marc Weber, national president of the Customs and Immigration Union, before the CPCI
Delivery companies UPS and FedEx have deplored the fact that only 20 to 30% of their import customers are registered on the GCRA portal. They point out in particular the complexity of the registration process.
CBSA confident
In a letter sent to the committee last Tuesday, Ted Gallivan, first vice-president of the CBSA, flatly rejected the criticisms made by the industry, in particular those concerning the lack of collaboration and training. A further six-month postponement would have caused “irreparable damage” and would have cost taxpayers around 20 million, according to the agency.
The ultimate test will take place on October 21.
Outcomes to be clarified
One of the hoped-for benefits of the new assessment system is to increase revenue for the Canadian state by reducing “missed opportunities to apply taxes and duties” on nearly $800 billion of imported goods each year. according to the CBSA. A document obtained following a request for access to information, however, shows that the value of unpaid accounts has increased since the gradual implementation of the new management system. Overdue balances increased from a total of 1.8 billion in April 2022 to 2.2 billion at the same date this year.