CBSA Consultation – Regulatory Amendments to the Valuation for Duty Regulations

The Canada Border Services Agency (CBSA) issued a consultation notice on potential regulatory Amendments to the Valuation for Duty Regulations. Consultation runs from June 4, 2021 and closes on July 4, 2021.

Provide your comments, any questions and input to CBSA on the proposed amendments. The complete notice is available for review here.

The CBSA is giving an opportunity to interested stakeholders to send comments and questions on policy directions, which could potentially inform future regulatory amendments to the Valuation for Duty Regulations.

CBSA welcomes feedback from:

  • importers
  • Canadian retailers
  • brokers
  • any other interested stakeholders

Budget 2021 proposed changes to the Customs Act to improve duty and tax collection, by ensuring that goods are valued in a fair and consistent manner by all importers as a means to level the playing field between domestic and foreign businesses.

Bill C-30, Budget Implementation Act, 2021, No.1, introduced on April 30, 2021, includes a legislative amendment to subsection 45(1) of the Customs Act. This amendment introduces a definition of the term “sold for export to Canada”, and allows its meaning to be assigned by the regulations.

Below is a summary of elements being considered by the CBSA for potential future regulatory amendments and for which these consultations are conducted.

Measures under consideration

1. Define the scope of “sold for export to Canada” to specify the relevant transaction for export which forms the basis of the transaction value of the goods.

This proposal would ensure that the value for duty of imported goods determined under the transaction value method is based on the sale that causes the goods to be exported to Canada, i.e. the last transaction in the commercial chain, irrespective of the chronological order of the sales. Under the proposal, the term “sale” would be constructed in a broad sense, which would include any type of arrangements that cause the goods to be exported to Canada.

2. Clarify the definition of “purchaser in Canada”, as well as the associated definitions of “resident” and “permanent establishment”, and ensure the relevant sale for export forms the basis of the transaction value of the goods.

The intent of these proposals is to remove any ambiguity on how to qualify as a permanent establishment. To qualify, the person would need to:

  • be the purchaser of the goods imported to Canada
  • have a fixed place of business in Canada, through which the goods are purchased
  • have the authority to enter into the arrangement/sale (the permanent establishment could not, under this proposal, be a conduit in the sale)

A non-resident importer, who does not have a permanent establishment, would only qualify as a purchaser in Canada if the goods were imported:

  • for their own use
  • on speculation of future sales (meaning the sale of the goods to a person in Canada was not arranged in any way before the goods arrived in Canada)

Please refer to the Annex for illustrative examples of the relevant sale for export where a series of sales occur in respect of the goods.


Please submit any questions or comments by email:

Edith Laflamme
Trade Policy Division
Trade and Anti-dumping Programs Directorate
Canada Border Services Agency

More Information

Information about Valuation

Customs Valuation Handbook: How to establish the value for duty of imported goods