Good morning, Madam Chair and members of the committee.
With me today is the vice-president of the CBSA commercial and trade branch, Peter Hill.
It's my pleasure to appear before the committee today as it is an opportunity to recognize the efforts that have been taken since the spring 2019 report of the Auditor General on the taxation of e-commerce. We appreciate the work that was done by the Auditor General.
In regard to our agency, the audit examined whether CBSA validated and collected the sales tax owed to the Government of Canada on goods imported through the courier low-value shipment program. The audit's overall findings showed some gaps in how CBSA managed the data for the courier low-value shipment program. The agency accepted all recommendations made in the report and quickly established an action plan to address the recommendations.
To date, the CBSA has made significant progress, including the development of an e-commerce strategy focused on balancing compliance with trade facilitation, safety and security, as well as revenue collection; aligning current practices with international agreements and World Customs Organization guidelines; and putting in place effective mechanisms to monitor and assess courier low-value shipment program compliance.
For example, the agency co-chaired, with an industry representative, the WCO working group on e-commerce, which has developed a global cross-border e-commerce framework of standards that will be presented for approval at the WCO council in December. The agency has leveraged that work, as well as collaboration with our Border Five partners, namely the United States, Australia, New Zealand and the United Kingdom, to develop a business case to address implementation of our customs e-commerce strategy.
I'm pleased to report that the CBSA is moving towards full implementation of this international approach and we are on track to review and enhance the means by which goods under the CLVS program are accounted for in order to ensure that taxes, including provincial sales taxes, are fully reflected.
The agency has also started to implement the multi-year CBSA assessment and revenue management system. This initiative will transform the collection of duties and taxes for goods imported into the country. We are also on track for examining options to further automate the CLVS program, including the ability to receive, process and analyze customs data.
The Auditor General recommended that the CBSA develop a strategy on e-commerce focused on trade facilitation, revenue collection, and safety and security. Our e-commerce strategy will enable and transform operations to better respond to the growing volumes of cross-border e-commerce shipment. It will also strengthen the CBSA's risk-assessment capability by leveraging advanced data analytics and technological enhancements, while addressing gaps in the legal and regulatory frameworks to enhance safety and security.
The CBSA is one of the major stakeholders in e-commerce in Canada. We are levelling the playing field for Canadian businesses in relation to those overseas. For example, along with our counterparts, the Canada Revenue Agency and the Department of Finance, we are working to ensure that the sales tax system for e-commerce remains neutral and protects the GST/HST tax base.
I look forward to responding to the questions the committee may have today.
Thank you.