"The personal exemption discrepancy puts businesses in Maine and other border states at an unfair disadvantage to their Canadian counterparts," Senator Collins said. "The Senate passed this resolution more than one year ago and it is time that the Canadian government takes action on this issue. I am hopeful that President Bush will take this opportunity to address this critical issue with the Canadian government"
The current personal exemption structure of Canada harms U.S. businesses because Americans traveling to Canada generally can return to the U.S. with significantly more duty-free merchandise than our neighbors who visit the U.S. are permitted to take home.
Senator Collins illustrates this discrepancy in the letter to the President:
"An American traveling to Canada or Mexico for less than 24 hours is exempt from paying duties on $200 worth of merchandise on return to the United States, and for trips over 48 hours, on $800 worth of goods. In contrast, a Canadian traveling to the U.S. is allowed a duty-free personal exemption allowance of only $50 of merchandise for a 24-hour visit and $200 for a 48-hour stay, and these are in Canadian dollars. A Canadian citizen is given no exemption allowance for trips under 24 hours, and Canadian Customs is instructed to begin collecting duties and taxes on merchandise as long as it can collect three Canadian dollars."
Although the Treasury Department and the Office of the Trade Representative continue to raise this issue with the Canadian government, Canada has neglected take action to remedy this disadvantage. Senator Collins is hopeful that progress can be made if the President raises this issue with Prime Minister Martin.
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