Page 10 - The Summit of the Americas 2021

INSIDER

relief bill also sets aside $1 billion for communicating with governments requirements for border shops (SEPRO),
aviation contractors and $8 billion for and working in tandem with industry and has also been working with Brazil
airports to help them operate normally, organizations including ACI LAC and the to update the Duty Free allowance for
limit the spread of the virus, and pay Brazilian National Association of Airport Brazilians shopping in border shops to
workers and service their debts. In Concessionaires. These efforts included harmonize it with border allowances
exchange for the aid, airports, contractors letters to ICAO representatives in each coming from other countries, which
and airlines are prohibited from large country with recommendations for global Donagaray says is expected to go into
layoffs through September and were forced standards and recovery protocol; a letter effect at the end of March.
to make other concessions. to the Uruguayan government to facilitate Working with the Duty Free operators
Riedi also spoke about the webinar the pre-sale of airport Duty Free before in all three countries (Brazil, Argentina and
IAADFS had organized for members in traveling and to discuss the possibility of Uruguay,) ASUTIL is looking to introduce
December, to discuss future opportunities. selling products to local people paying a Home Delivery from the duty free stores.
Among the new ideas discussed were duty tax at borders. ASUTIL also worked with the
free on arrival; increasing the current duty ASUTIL successfully lobbied the Uruguayan government, which has created
free allowance and changing the practice Brazilian Government to reduce the a commission for “no presencial” sale to
of confiscating liquor products at transit costs association with the IT information tourists in borders.
airports on U.S. bound flights.

Canada
Barbara Barrett, Executive Director
of the Frontier Duty Free Association,
presented an update on the situation in
Canada.
Land border stores are seriously
affected since the Canada /U.S. Border has
been closed to all but essential workers
since March 21, 2020 and closure is
currently extended to at least April 21,
2021 (likely to extend well beyond). As
a result, some 75% of land border stores
are completely closed, and those open to
essential workers have very little traffic
The FDFA was able to join a Coalition
of the Hardest Hit, which has resulted
in the government approving a Highly
Affected Sectors Credit Availability
Program (HASCAP), a liquidity program LATAM: With the surge in coronavirus cases and the variants out of Brazil at press time, South
that became available in February. America might not return to pre-COVID passenger levels until 2025.
FDFA also successfully advocated
for a rent subsidy that would be provided
directly to tenants, and allow Duty Free
stores to receive up to 65% in base subsidy.
Additional negotiations are underway as
well.
To help the Duty Free sector recover,
FDFA is also pursuing the creation of a
Canadian Duty Free Zone; the restart of
Canada’s Visitor Rebate Program and of
prime importance, the safe reopening of the
Canada-U.S. border.

LATAM
Looking at the situation in South
America, Jose Luis Donagaray, Secretary
General of South American Duty Free
Association ASUTIL, said that the Quarantines will prevent some three quarters of potential passengers from traveling,
association continues to work vigilantly says ACI World.

The Virtual Summit of the Americas Issue April 2021 10