Calgary costume shop left with hefty bill after border tariff change

The owner of a Calgary costume shop is at odds with the federal government after finding out he was being charged tens of thousands of dollars in import duty fees.

Ryan Schoel, owner of The Costume Shoppe on Blackfoot Trail SE, says for years he has imported his stock as “festive wear” under Chapter 95.05 of the Canadian Customs Tariff, which is not taxed.

Now, after a change by the Canadian Border Services Agency (CBSE), costumes are now classified as “fancy dress” imports, which are subject to tariffs.

Schoel now faces fees estimated at $100,000 as he’s being charged retroactively to 2021.

“I can lose my house and I can lose my family, I can those everything to support and the answer to me was ‘That’s too bad,'” he said. “That’s not acceptable.”

The store owner says large big-box retailers who sell the same products as him are not facing the same fees as him.

“Everybody from PartyCity, which is Canadian Tire, to Loblaws, to everybody who imports Halloween costumes all use the 95.05, which is the zero-taxable Halloween festive-wear tariff code,” Schoel said. “They’re coming after me — I can’t afford to fight this.”

Schoel is able to file an appeal, but there’s a catch.

“I have to pay the duties before I can appeal them, even though we can look at the product and know that clearly, they’re making the wrong decision,” he said.

The costume connoisseur believes it’s quite obvious his products don’t fall under the new tax category.

“[They’re] a definite Halloween costume, they are not clothing,” Schoel said. “Ghost Face — clearly. Luigi — clearly. I challenge you to go to the bathroom in it.”

In a statement to CityNews, the CBSA outlined the Oxford Dictionary definition of a fancy dress to be “an unusual or amusing costume worn to make someone look like a famous person, fictional character, or an animal, especially as part of a theme at a party.”

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It’s the time of year when nearly everyone is looking for an alter-ego, and Schoel says he’s not ready to give up just yet.

“One minute you catch me crying, just ready to put the key in the door and as sad as that sounds that’s how I feel,” he said. “A few minutes later, I’m like ‘I’m not letting them knock me down, I’ve worked too damn hard.’

“I came through the pandemic. I’m not giving up now. I’m not ready to give up now.”

And, the businessman is getting full support from the Canadian Federation of Independent Business (CFIB) in his fight.

The organization has already sent one letter of support for Schoel to the CBSA.

CityNews has reached out to several Calgary costume retailers to see if they’re also being hit with fees.