Canada backpedals on bicycle import tax

VANCOUVER -- Canadian authorities have shifted gears and decided to waive import duties on some of the bikes from Amsterdam that the Dutch government planned to leave in Canada after the 2010 Winter Olympics, an official with the Netherlands consulate in Vancouver said Wednesday.

The Canadian Border Services Agency sent an e-mail at 10 p.m., Tuesday, advising an official with the Dutch consulate-general in Vancouver that 25 bikes could remain in the country tax-free, consul Jacob Koedood said in an interview.

The phone call came a few hours after The Globe and Mail reported on its website that the government's demand for duties could undermine the Dutch bike program at the 2010 Olympics.

The Dutch government plans to bring 425 bikes to the Games to promote cycling as a healthy lifestyle and a feasible means of sustainable transportation.

They are to be available at Holland Heineken House, its hospitality centre in Richmond, for fans to go to the nearby Olympic Oval for speed-skating events or to cycle around Vancouver. Also, Dutch staff at Heineken House can pedal to their hotels.

The sturdy, all-weather bikes, provided by the Netherlands' national railway, are also to be used in an event promoting cycling in early February before the Games begin. In the original plan, they were to be donated to a local charity afterward.

Canada had introduced regulations for the Games that allowed sporting goods to be brought into the country without paying import taxes - provided the equipment is exported after the competition.

Canadian officials, when asked if the duties could be waived if the bikes remained in Canada, at first said no. But they finally worked out a solution that will enable the Dutch to give some of the bikes to a charity, Mr. Koedood said. The remaining 400 will be sent back to the Netherlands.
Canadian Border Services Agency did not respond yesterday to a request for an interview on the import duties.

Mr. Koedood said Dutch officials were satisfied with tax concessions for only a small portion of the bikes, each of which cost around $800. He was diplomatic about how Canada handled the matter:

"Being in government myself, I can appreciate that it is sometimes difficult to have new rules and regulations ... My time and attention is focused on solutions, and I think we are reaching those solutions. It took more time than anticipated, but we're getting there."

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