Federal Minister of Public Safety Dominic LeBlanc said Wednesday that the postponement of the implementation of the Contributions and Revenue Management (GCRA) system at the borders was indeed due to “concerns” from the industry.
This version contradicts that of the Canada Border Services Agency (CBSA), which had instead cited a risk of strike at the Public Service Alliance of Canada to justify a launch next October rather than last May. “The GCRA is ready for deployment,” the agency assured in a statement on April 19. The threat of a strike dissipated Tuesday when the customs union reached a tentative agreement with the federal government.
La Presse revealed on Wednesday that the development of the GCRA portal was hampered by cost overruns, significant delays and numerous flaws reported by around forty commercial partners.
The initiative, in the works since 2010, aims to modernize the collection of duties and taxes on commercial goods. All importers will need to be registered in a customer portal to submit their declarations and payments directly online to the CBSA.
The digital tool has already cost taxpayers more than half a billion, while authorized spending reaches 706.5 million, compared to an announced budget of 408 million in 2019. The software was to be launched no later than July 31, 2021 A new iteration was planned for May 2022, then for October 2023, and finally for May 2024. The implementation of the final phase is now set for October 21.
“We understand very well the concerns of exporters and other Canadian businesses that deal with the Border Services Agency, which is why we have delayed a certain aspect of the implementation of the application,” explained Minister LeBlanc during Question Period in Ottawa. It should be noted that it is importers and not exporters who are affected by the deployment of the GCRA.
Mr. LeBlanc was responding to Bloc Québécois MP Simon-Pierre Savard-Tremblay, who asked him what he was doing to “put the agency back in order”; it is also involved in the ArriveCAN scandal. Mr. Savard-Tremblay, vice-president of the Standing Committee on International Trade (CPCI), had just described the GCRA system as a “fiasco” and management at the CBSA as the “Wild West”.
“I am fully aware of the concerns and I will ensure that the Border Services Agency proceeds in the right way,” said Mr. LeBlanc.
“The GCRA application is like ArriveCAN, a financial pit, but in addition, it’s like [the payroll system] Phénix, it doesn’t work, it’s the total,” added the Bloc MP Quebecois in reference to the two controversial federal software.
In the House, Mr. Savard-Tremblay added that the CPCI had been waiting for important documents since March, such as an emergency plan if the GCRA system does not keep its promises during its full launch. “Imagine the mess if it crashes,” he said.
“I have had several discussions with the Agency to ensure that the scenario that our colleague puts forward does not happen and I will continue to do this work, too, with the Agency,” indicated the Minister of Public Safety.
One of the hoped-for benefits of the GRCA system is to increase revenue for the Canadian state by reducing “missed opportunities to apply taxes and duties” on nearly 800 billion goods imported each year, according to the CBSA.
