November 7, 1995

Customs Enforcement Options
Exports of Wheat and Barley Products

Background

In 1994, the Canadian Wheat Board requested that Revenue Canada help to ensure compliance with the export regulations on wheat and barley products.  Prairie grain farmers had begun to export the wheat and barley directly ot the U.S. without export permits, bypassing the Canadian Wheat Board.  On August 30, 1994, the Minister signed an Administrative Order establishing the terms of release for export shipments of wheat and barley products that are seized or subject to ascertained forfeiture for failure to report to customs.  The penalties are $40 per metric tonne of barley and $100 per metric tonne of wheat.  In addition, a penalty of $400 for the first infraction and $2000 for each subsequent infraction is applied against the conveyance.  These penalties were developed in consultation with Agriculture and Agri-Food Canada.

Since August 1994, 81 notices of ascertained forfeiture have been issued for shipments of wheat and barley product illegally exported.  As well, 12 trucks have been seized at the border.  These ascertained forfeitures have been appealed to Adjudications who have now issued their decisions upholding the enforcement actions.  The appellants have the option to appeal the decision to the Federal Court.  It may be years before the Federal Court renders its decision.

Along with these ascertained forfeitures and physical seizures, criminal charges have been laid under section 95 of the Customs Act against Messrs. Sawatzky, McMechan and Cairns.

Sawatzky is scheduled to appear in court on November 14, 1995, and McMechan and Cairns are schedule to appear on January 8, 1996.  The laying of the criminal charges was the culmination of approximately one year's worth of investigative work.  It is expected to take another four to six months before these court cases are finished.  These cases will cost us approximately 1.5 FTE's and $159,000.  In addition the Department of Justice will incur significant cost prosecuting these cases.

Farmers are dissatisfied with the position taken by Revenue Canada and the Canadian Wheat Board on the permit requirements for the export of wheat and barley.  Various protests have been held at customs ports in Manitoba and Saskatchewan by a group calling itself the Farmers For Justice (FFJ) demanding the elimination of the Wheat Board and the freedom of farmers to market grain directly.