CBSA faces hefty holiday overtime bills while officers waive duties to reduce border wait times

You might think the lineups to get back into Canada after a long-weekend excursion into the United States are interminable, but it seems they could be much worse without a little-known tweak in the rules.

Canada Border Services Agency (CBSA) apparently has a policy of relaxing the requirements to pay duty and taxes on goods brought over by cross-border shoppers during times of heavy traffic volume.

Normally, returnees can bring in up to $200 duty-free after an overnight stay in the United States, while trips of less than 24 hours offer no exemption. That latter requirement goes out the window when it's really busy, Jason McMichael of the Customs and Immigration Union told CTV News.

"During periods of peak traffic, I’ve seen (the federal duty exemptions) raised anywhere from $150 to $200 and more per person in order to alleviate the traffic strains," McMichael, the union's national vice-president, said.

[ Related: Cross-border policy that lets shoppers avoid duties and taxes frustrates Canadian retailers ]

Meanwhile, budget cuts have created a staff shortage at the border, resulting in the remaining officers racking up millions of dollars in overtime, especially on holiday weekends, according to Postmedia News.

According to documents Postmedia News obtained under access-to-information legislation, the August 2012 long weekend cost almost $2 million in overtime, while Easter Monday last year generated $2.6 million in overtime.

Meanwhile, Postmedia News reported, border agents have been told to cut down on long lineups by waiving duties during peak cross-border shopping periods.

“It’s counterproductive,” McMichael told Postmedia News, explaining that drug and weapons enforcement take priority over collecting taxes and duties when border crossings are short-staffed.

“The costs associated with the overtime are astronomical. They indicate in my mind a staffing crisis.”

The combination of hefty overtime bills and foregone taxes and duties are a double whammy for taxpayers.

"To lose the revenue that comes with the duties that would normally be charged is quite concerning," Canadian Taxpayers Federation spokesperson Jordan Bateman told CTV News.

Retailers have been miffed as well, especially since the government raised the duty-free limit for travellers returning after 24 and 48 hours.

[ Related: Duty free limit increase to batter Canadian retailers ]

The Department of Public Safety wouldn't comment on the overtime-cost issue but spokeswoman Julie Carmichael told Postmedia News front-line officers had not been cut when the CBSA eliminated 250 jobs in the 2012 budget.

But McMichael called the government's position misleading because about 70 border agents accepted early-retirement packages and they were not replaced. The situation has created a false economy, he argued.

“When you’re spending this much money on overtime, when a significant portion of that could be used to just bring staffing levels up to a healthy level, it’s better for everyone,” he said. “There’s no question the staff would be more productive because they’re not being forced to work long hours.”