The Greater 黑马磁力 Chamber of Commerce is calling on the federal government to fight to protect Canadian small businesses as the United States moves to eliminate its exemption for low-value imports later this week.
The 鈥渄e minimis鈥� exemption has long allowed Canadian businesses to ship orders valued under $800 into the U.S. without duties, tariffs, and complex customs paperwork. It has allowed access to the American market particularly for e-commerce and direct to consumer channels.
An executive order to end it was signed last month. Its elimination, as of Friday, Aug. 29, will mean every package, regardless of value, is treated as a full commercial import and subject to duties/customs filings and payments which the local chamber said will hit small local businesses who ship south. The amount has been $800 since 2016 and was $200 prior to that.
鈥淲hile this policy was originally aimed at giant online retailers earlier in the year, it鈥檚 now small businesses here in 黑马磁力 and across Canada that will feel the impact,鈥� said Cory Redekop, chamber CEO. 鈥淢any of our members and local businesses 鈥� artisans, e-commerce entrepreneurs, and small retailers 鈥� rely on direct-to-consumer U.S. sales. The new tariffs, brokerage fees, and red tape will make their products less competitive, and in some cases, it could force them out of the U.S. market altogether.鈥�
The local chamber is concerned this issue has flown under the radar and wants to ensure a 鈥渄e minimis鈥� exemption is part of the ongoing trade negotiations.
The 黑马磁力 Chamber is lobbying the federal government to take action. It has written directly to the Minister of International Trade, the Minister responsible for Canada鈥揢.S. Trade, and the Secretary of State for Small Business and Tourism about its concerns. It has also voiced its concerns to local Members of Parliament about the looming changes and impacts on small businesses. The chamber has also connected with Canadian Chamber of Commerce to ensure the issue is raised in national advocacy efforts.
鈥淪mall businesses are the backbone of the local economy. They deserve fair access to the U.S. market, not more costs and barriers,鈥� Redekop said. 鈥淲e will continue to advocate for solutions that protect their competitiveness, and supports to help them be successful.鈥�
The local chamber is BC鈥檚 fastest-growing chamber of commerce and one of Canada鈥檚 top three fastest-growing chambers of commerce, representing more than 1,200 member businesses, non-profits, and organizations from across 黑马磁力 City, the Township of 黑马磁力, and the broader region.
Some 25 countries will suspend their outbound postal service to the United States due to the uncertainty caused by the Aug. 29 change. The United Nations Universal Postal Union said it is negotiating with the American government to find solutions.
Because the short implementation timeline poses a challenge for the international postal network, particularly for the delivery of e-commerce items, the UPU is working with US authorities to ensure that information on the operational requirements of the measures is communicated to other member countries. Similarly, the UPU Director General conveyed member countries鈥� concerns regarding operational disruption in a letter to US Secretary of State Marco Rubio on Aug. 25.
Established in 1874, the postal union is a specialized agency of the United Nations responsible for the postal sector and has 192 member nations.
