CFIB’s Paperweight Award (i.e., the award no one wants to win) highlights the most ridiculous examples of red tape from across the country that cause frustration and headache for Canadian citizens and business owners.
Worst of the Worst: All trick and no treat for costume shops
Recipient: Canada Border Services Agency
Worst of the Worst:
All Trick and No Treat For Costume Shops
Recipient: Canada Border Services Agency
A small costume shop has been hit with a wardrobe full of paperwork and fees all because of two small word changes from the Canada Border Services Agency (CBSA). Meet The Costume Shoppe, a 25-year veteran of Calgary’s costume scene, whose import of themed costumes took an unexpected nosedive right before their busiest time of the year.
The business was previously permitted to import themed costumes with zero duty fees because they were classified as “festive wear” under Chapter 95 of the Canadian Customs Tariff. This all changed in 2022 right before the Halloween and holiday seasons when the CBSA notified the shop that its costumes were now considered “fancy dress” under chapters 61 and 62, making them subject to 18% duty fees plus applicable taxes. The federal agency directed the shop’s owner to submit an extensive report detailing the quality of the costume materials, failed to verify the costumes in person, never explained the reasoning for their decisions, and required the "voluntary" payment of taxes retroactively back to 2020.
The CBSA’s decision is also creating an unlevel playing field between big and small businesses. Holiday-themed clothing and accessories are not meant for everyday use, regardless of their cost and quality. The Canadian International Trade Tribunal was of the same opinion when in its 2011 ruling it determined that Halloween costumes imported by Loblaws Canada were exempt from chapters 61 and 62.
The fix: The CBSA should revert to classifying themed costumes sold by small businesses as “festive wear”.
Image: Costume Shoppe owner Ryan Schoel and his frustrating CBSA paperwork.
The Power of a Paperweight Award
When we stand together against unfair rules and regulations, we can have a major impact on government policies--like in Quebec, where a 2019 Paperweight Award helped this business owner wake up from his red tape nightmare.
Weekly steak dinners. A new business license—just for changing addresses. A carbon tax rebate costing $80,000.
These are just some of the regulatory blunders CFIB members have faced over the years. We’re taking a break from handing out these dubious honours in 2021 and 2022, but you can still see who has earned the spotlight in past years below.
DisService Canada - 2023 'Winner'
Government of Canada
January 31, 2023
«Unacceptable». That is how Prime Minister Justin Trudeau described Service Canada’s public service delivery over the past year. Ask the average Canadian, and they’ll probably add in a few more expletives. As the world was finally coming back to life after two years, someone clearly forgot to tell Service Canada.
In the summer of 2022 it became alarmingly common to see Service Canada locations sporting the kinds of lineups that are usually reserved for the latest iPhone or Taylor Swift tickets. Camping chairs and sleeping bags dotted city sidewalks as citizens camped out in front of passport offices in the hopes of making it to the front of the line by the next morning. More than 1.5 million Canadians applied for, or attempted to renew, their passport over the past year. According to an Angus Reid poll, 10% of applicants spent over six hours in line or over the phone. An astounding 5% reported paying someone to stand in line for them along the way!
Even after getting through, applicants on average waited 68 days to finally get their passport. Well beyond Service Canada’s pre-pandemic 10-20 business day service standard. All told, 80% of applicants experienced some form of inconvenience or frustration along the way. One in five wound up withdrawing their application entirely.