Thank you.
Good morning, honourable Madam Chair and members of the committee.
On behalf of my colleague Robert Closner and myself, we would like to thank you for the opportunity to speak with you today.
To provide you with further context for our appearance, we'd like to state that our issues are related in a broad sense to Canada-U.K. trade, as they are related to any major cross-border trade relationship our country currently has.
As Canada’s largest customs broker, we represent approximately 25% of the goods imported into Canada, across tens of thousands of importers representing a broad range of industry sectors. We employ over 2,000 Canadians across the country, and we have been supporting clients during the COVID-19 pandemic, keeping supply chains moving in the wake of this unprecedented global public health response.
These imports are fundamental to our economy's ability to fulfill its full potential for export markets. As an example, from data on the cross-border flow of goods in the auto sector, a product will cross the border two or three times before it becomes a finished good. Imports and exports have never been more interdependent.
We know that the pandemic has demanded fast and bold responses from national governments. Livingston International extends our thanks to Canada’s federal government for its significant economic relief efforts during the COVID-19 pandemic, given the difficult environment for businesses, communities and Canadians in general.
We also understand that all businesses must evolve to survive. Alongside this evolution incumbent on the private sector, we also believe government must become partners in developing flexible regulations that allow businesses to operate efficiently during these challenging times. I’d like to thank members of Parliament, Tracy Gray and others, for first raising our issue with Minister Ng during her appearance before committee.
To further Ms. Gray’s line of questioning, we believe we are uniquely positioned to provide insights for this committee on the unintended consequences of one key measure implemented to address this crisis. By ensuring the movement of goods across international borders, customs broker firms play a critical role in maintaining access to foreign supply of goods and restarting and stimulating Canada’s economy. Our challenges present a unique but critical perspective.
Customs brokers are licensed by the federal government and can be considered government’s original trusted traders. Through this pandemic and beyond, customs brokers have and will continue to be a valued partner in the global supply chain, facilitating trade on behalf of importers and acting as the conduit to Canada Border Services Agency and in turn to Revenue Canada.
For goods to clear customs at the time of release, the duties and taxes on the goods being imported are required to be paid at the time of clearance, or the importer must rely on a release-prior-to-payment bond. As most importers of record do not have their own bond, they rely upon the bond of their customs broker to facilitate clearance in a timely manner. Custom brokers are required to invoice, collect and remit significant outlays of duties and taxes on Canadian imports on behalf of the importer of record, and if the goods have been imported using the broker's bond, the risk of payment lies entirely with the broker.
Robert will provide further details on our current position.
Thank you.