The Canadian Border Services Agency (BSA) cannot confirm whether Dollarama, targeted by an Information Co-ops investigation for the destruction of unsold goods often imported from Asia, is profiting or not from what it calls a ” drawback”, a provision provided for in the Obsolete or Surplus Goods Program. One thing is certain, she could be eligible, confirms the federal agency.
Dozens of children’s notebooks, in addition to other new products, were found in this trash can at a Dollarama branch as part of our investigation. (Information Coops)
“A company like Dollarama may have goods that are eligible for a “drawback”, that is to say a reimbursement of customs fees paid,” indicates an ASF spokesperson.
The definition of “outdated or surplus” goods is quite broad. These are products that are no longer useful, old or expired. Or even surplus items that have not been sold. For example, seasonal products, once the period is over, or a souvenir at the end of an event.
This little-known federal program, which is part of an overall “commercial encouragement” plan, aims to allow Canadian businesses to “remain competitive,” explains an ASF spokesperson.
Bloc MP Simon-Pierre Savard-Tremblay has a different vision of this program, which he summarized during question period in Ottawa on May 1, by calling on the federal Minister of Public Safety, Dominic LeBlanc.
Bloc MP Simon-Pierre Savard-Tremblay did not receive a follow-up to his request for a meeting with Minister Dominic LeBlanc. (Stephane Champagne/Archives La Voix de l’Est)
“Basically, it’s a program that aims to give money to merchants who throw away their excess goods. We are talking about non-perishable goods. For example, let’s say I have a jeans business. I import a new model, I end up with unsold items that are out of fashion. I have two choices: either I throw them in the garbage and Ottawa reimburses me for the customs fees or I give them to a charity, and I don’t have a cent. It’s a great invitation to waste. Who in Ottawa thinks this is a good idea? asked MP Savard-Tremblay.
Minister LeBlanc committed to “ask questions about the Obsolete or Surplus Goods Program,” and to “follow up” with the Border Services Agency.
A month later, has Minister LeBlanc become aware of the program and will he ask for it to be studied in more depth?
Public Safety Minister Dominic LeBlanc was questioned about the Obsolete or Surplus Goods Program on May 1. (Sean Kilpatrick/Canadian Press Archives)
We asked the question to the Border Services Agency, which administers this program, to the Department of Finance, which is responsible for policies, as well as to the office of the Minister of Public Safety, Dominic LeBlanc.
The brief response finally came from the minister. “We are currently examining the options available to us to modify the Obsolete or Surplus Goods Program, and we will communicate the next steps to Canadians in due course,” said Minister LeBlanc’s spokesperson, Jean- Sébastien Comeau.
MP Simon-Pierre Savard-Tremblay did not obtain many more details following his intervention in the Commons. The MP “sent a letter to Mr. LeBlanc’s office requesting a meeting to discuss it. The letter has so far remained unanswered,” explains its public relations manager, Amélie Gamache.
The Bloc MP had a motion adopted by the Standing Committee on International Trade to carry out a study on the subject. “As the end of the session approaches, and the schedule is already busy, this study will not take place before the start of the parliamentary term in the fall,” specifies Ms. Gamache.
Impossible to give: it is necessary to destroy
To obtain a refund of duties paid, a company must respect “all of the following conditions,” insists Ottawa: the goods are deemed “outdated or surplus” by their importer; they are not used in Canada; they were not damaged before their destruction; and finally, they were destroyed.
Goods deemed surplus must therefore be in good condition before destruction. Would a donation be possible?
The Agency’s response is clear and clear: “The donation of goods to Canada does not meet the eligibility criteria of the Obsolete or Surplus Goods Program.”
