Mr. Speaker, I recently asked the revenue minister in this House two questions concerning the new regulations on the collection of import duties and taxes that will come into effect on January 16, 1995.
In a document signed by the Deputy Minister of Revenue Canada, Customs, Excise and Taxation, after a long preamble trying to justify the measure and make importers feel safer, the department unilaterally decides to increase the bond required of importers to 100 per cent of their monthly instalments, up to a maximum of $10 million. The reason behind this change is the losses sustained by the government because customs brokers or importers were no longer able to pay their instalments.
For now, but for a short time only, the requirement is 35 per cent of the first $200,000 and 17.5 per cent of the next $1.8 million, up to a maximum bond of $2 million.
This bond can take the form of cash, Treasury bills, a letter of endorsement from a bank or a bond issued by the government.
Under the Customs Act, the importer is ultimately responsible for paying the duties and taxes. In Canada, these duties and taxes amount to about $11.5 billion a year, most of which is collected by customs brokers at no cost to the government.
A manufacturer who wants to import a given quantity of materials or products can import them himself. Use of a customs broker is optional, not required.
In the Canadian importers' magazine for October 5, they raise real objections to the increase in security demanded. This increase would force them to freeze assets, most of which are used to secure their working capital.
The conclusion of the industry committee's report on financing small business is that the lack of financing for small business is the fault of everyone except the government. It makes no sense.
Furthermore, I learned today that some very big importers like GM, Chrysler and Honda strongly refuse to provide such security and that they are negotiating with the Department of National Revenue to obtain a review of this policy. They are negotiating with the big ones, but crushing the little guys.
Is an importer or a very large customs broker with remittances of $250 million a month, who secures only $10 million of that, not favoured by this measure compared to a very small broker who must secure 100 per cent of his monthly remittances? Is favoritism not being shown, at the expense of the smaller operators? The government says that it is ready to encourage small business, but when the time comes to keep its word, it backs down.
I would like to have an explanation of this.