Finance committee  The members of our association have duty free stores, but, when someone arrives at an airport from Canada or a foreign country and must transit, that person has to go through a public area before returning to the secure area in a “domestic” section. That's when containers of more than 100 ml of liquid are confiscated.

Finance committee  Exactly.

Finance committee  Indeed. So we're talking about a difference of an hour or two. Will that be the decisive factor? We're asking that what is duty free remain duty free until you pass through Canadian customs. Purchases are therefore made until you can buy at Canadian customs. In fact, it's appreciably the same principle at the border.

Finance committee  In fact, it's the same thing in airports. When you return from an international trip, you have to go through customs. You mustn't try to avoid it. There's no favouritism. These purchases are made as you arrive in the country, but before the customs inspection is completed.

Finance committee  In fact, if you look at the question from a tax standpoint, I would say that the increased revenues of duty free operators, the payroll increase, will enable the federal government to make a net gain through the taxation of corporate and personal earnings. Furthermore, we're not talking about additional earnings.

Finance committee  The two points of my presentation that must be kept in mind are as follows. First, the market in general is changing. Many people who come to visit Canada will return to their countries and will buy goods at the duty free store when they arrive. So sales are being shifted. There are already 55 countries.

Finance committee  Yes.

Finance committee  In any case, it isn't just the moment you leave the country. We have duty free products on board aircraft that haven't passed the customs post of the foreign country to any greater or lesser degree. Perhaps you can ask the question differently.

Finance committee  Thank you, monsieur le président. ACADFO stands for the Association of Canadian Airport Duty Free Operators. We represent the providers of duty free retail services to international travellers at Canadian airports. We're also working in concert with airport authorities to introduce arrivals duty free in Canada.