CANADA CUSTOMS RULES OUTRAGE IMPORTERS

Outraged importers came out of the woodwork last week after seeing my column
on their vulnerability under the Canada Customs Act.

I wrote about Tania Ritchie, a Calgary businesswoman selling imported
antique furniture, who was sideswiped by a delay in the delivery of her
shipping container, followed swiftly by an $850 bill.

Canada Customs in Montreal had picked out her container of furniture from
Europe to search it for illegal drugs.

They found none. But Ritchie had to pay the cost of moving the goods to the
customs examination centre and back.

That's the law under the Customs Act.

Meanwhile, all unsearched containers sail on through at no charge to the
importer.

Tom Meidinger led the outrage, his reaction tinged with irony. The day he
read my column, he was informed by his shipping agent that his container was
delayed in Vancouver and he'd be getting a bill for $850.

Meidinger has just started a furniture import business, Yogya, specializing
in mahogany and teak furniture from Indonesia.

"It was my first shipment and I understand there's a concern (about drugs),
especially coming from Indonesia," he says. "But the way you're billed seems
to be not normal business practice."

Meidinger thinks taxpayers should pay the bill or all importers should be
required to share the cost.

"It has to equitable in the way the fee is levied," says Meidinger.

"Just because we agree with their (drug search) policy, we shouldn't have to
pay for it."

Annabel Tully owns Kismet, which imports furniture and ceramics. Her
container has been on a strange odyssey. After being held up two weeks in
Vancouver, it arrived in Calgary last Monday. Then she was informed it had
to go to customs for inspection.

The customs' warehouse was backed up, so she was told to send it to a
private warehouse where it would be inspected right away.

That was Monday; the container was released Friday.

"I'm livid. I'm a small business and I can't afford this delay in time,"
says Tully. Customs officials explained the delay by saying they were
working on a big case and were short-staffed.

Fine, but why not inform her immediately, why make her seethe as the delay
stretched out day by day?

Tully says she has no idea what her bill will be, only that she has to pay
for the transportation, unpacking, repacking and possibly warehouse storage.

"We have no choice," she says in exasperation. "It's like this is Russia;
there's no watchdog agency."

This is the first time Tully has shipped by marine container. Previous
shipments by air cargo have been opened, she says, but there has never been
a bill attached.

The industry's perspective on the issue got cut short in last week's column,
due to lack of space. It is clear that many officials sympathize with the
importers.

The government's maritime container examination program has been the subject
of controversy recently, says Norman Loiseau, Canada Maritime Agencies
Ltd.'s general manager for regulatory compliance and the industry point man
on the question of inspections.

"The program is part of Revenue Canada's anti-smuggling initiative," says
Loiseau, who briefed the assistant deputy minister of Revenue Canada Customs
on the shipping industry's concerns in September.

"If this is a question of national security (the search for illegal drugs),
it should be funded from national funds."

Barring that, the industry could consider a user fee to offset the cost.
That way all importers, including those who escape examination, would share
the expense.

"It is seemingly unfair that a legitimate importer, unknown to him and
unable to build it into his costs, ends up having to pay the bill," Loiseau
says.

"You can be sure that anyone caught isn't going to show up," and certainly
not to pay the bill.

Canada Customs also puts shipping agents on the spot by forbidding them to
let the customer know the container is going to be inspected. "We have to
say we can't locate the container. That's a stock phrase meaning it's gone
for examination," says Loiseau.

"The first time the customer knows about it is when he gets the bill."

Bob Armstrong, president of the Canadian Importers Association Inc., says
his organization has been airing concerns regularly in the house publication
Import Week.

Armstrong says the roughly $900 cost of inspection can eat up the entire
margin for a company in the food business importing packaged goods.

"It is very, very costly for smaller businesses," he says.

Marilyn Sheftel, owner of Silverhill Acura and a member of the National
Small Business Advisory Committee to Revenue Canada, says stricken
businesses will pass the cost on to the consumer.

"Ultimately it's the consumer who's going to have to pay. And that's not
good for the economy," says Sheftel, who is reserving judgment on the issue
until she is fully informed.

"Speaking as a member of the committee, I need more background and
information. I don't mean to cop out, I just want to be very prepared.

"To the best of my ability, I will see to it that this issue is brought
forth at the next meeting," Sheftel says. The meeting is Nov. 5 and 6 in
Ottawa.

If you have any items or pieces of information you'd like to pass along,
call me at 235-7474 or fax 235-7358.
E-mail: crawforda@theherald.southam.ca

Checked-by: Rolf Ernst