- August 2009 -
 
 

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WHTI – How has this U.S. Legislation affected the Canadian Duty Free Industry?

The FDFA has been monitoring the June 2009 WHTI implementation and any ramifications to our Canadian land border duty free shops that have resulted since the deadline has been enacted. We do know that for the majority of our crossings, U.S. customs has been extremely flexible and understanding to travelers, who do not have the correct identification. From what we understand, the majority of those traveling comprehend the WHTI rules and are complying by bringing WHTI compliant I.D. over the border. For those travelers, who have not brought the correct identification, many US customs officers are simply warning travelers and reminding them of identification requirements, etc. However, this flexibility by U.S. Customs at the majority of our land border crossings may only be a short-term reaction. The FDFA can not predict when U.S. Customs will become more strict with travelers. Therefore, it is important that our stores and the FDFA continue WHTI communications to all duty free customers. 

The concern with WHTI is that we are still seeing decreased traffic volumes at the stores. Upon speaking with some of the Canadian land border duty free stores, there are some who are concerned that many US and CND families are simply not traveling as they could be confused about identification requirements for their families i.e. many believe they may require a passport for their child who might be under 15 years of age, or they believe that due to the WHTI requirements that there will be traffic congestion at the borders. Both of these concerns are myths, and in fact 1/ children only require a birth certificate to cross the border with parental supervision 2/ we are seeing less to no traffic congestion at most border crossings.

Recent WHTI Survey to FDFA Operators and the Results:
At the beginning of July 2009, the FDFA sent out a survey to our operator members regarding WHTI and the affect of WHTI to their respective stores. Please note some of the findings from the survey:

  • 85% responded that overall vehicle traffic for Spring/Summer 2009 has decreased at their crossing
  • The stores reported that while WHTI is a major factor that they would attribute to the current decreased traffic levels, they also note that the economic climate and exchange rate are both pivotal factors in traffic conditions.
  • 78% of Operators indicated that bus traffic is down with 68% of our Operators indicating that truck traffic is down – again, due to the economic conditions, exchange rate and WHTI
  • 93% of our stores are providing some form of resource to their customers on WHTI i.e. passport applications
  • 86% of our stores believe that their respective US Customs officers are being flexible and understanding due to the WHTI situation
  • 35% of our Operators would like the FDFA to continue providing information on WHTI to the stores and continue new WHTI type initiatives.

The FDFA sent out a press release in the Spring of 2009 regarding WHTI and the proper identification requirements. This was picked up by over 200 media outlets in both North America and internationally.

As a follow-up, the FDFA has released another press release regarding WHTI that was sent out on August 5th, 2009. The focus again is to inform US and CDN citizens about identification requirements and the tremendous savings at duty free shops across Canada.

FDFA Press Release regarding WHTI – August 5th, 2009

The press release has been widely circulated with over 50 U.S. media outlets picking up the story, and has been widely circulated in Canada. Following the press release, Laurie Karson has discussed WHTI, less line ups at border crossing and duty free savings via follow-up media interviews and radio appearances. To review the media tracking document click here

FDFA Operator WHTI Checklist:
For those stores, who would like to provide more information on WHTI identification requirements to their customers, please review the following “WHTI Checklist” to see what more you can do to educate your customers. Within this attached chart, you will note further web links that provide information on all WHTI approved identification specifications (i.e. cost of identification, identification contact information, WHTI posters, if the FDFA can provide forms directly to your store, etc.)

WHTI Checklist for FDFA Operator Members

The FDFA will continue to monitor all WHTI related activities and update all members on FDFA initiatives relating to this issue.

Enhanced Driver’s License Update:

For up-to-date information on the Enhanced Driver’s License program in both Canada and the U.S., please see attached chart from the Canada Border Services Agency – updated in August 2009. This chart denotes active use of EDL’s per state and/or province and number of issuing offices.

Enhanced Driver's Licence Program Chart - CBSA/August 2009

Of interest, Peace Bridge Duty Free Store is offering customers who present a valid Enhanced Driver’s Licence with a $20.00 Peace Bridge gift certificate.

 
 
 
 

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For comments and/or questions contact:

Laurie Karson – Executive Director
lkarson@fdfa.ca
www.dutyfreecanada.com