Consultation on proposed amendment to the Valuation for Duty Regulations

The CBSA is proposing amendments to the Valuation for Duty Regulations. The proposed  amendments were published in the Canada Gazette on May 27, 2023 with a 30 day consultation period until June 26, 2023.

The existing legislative and regulatory framework governing the methods of determining the value for duty (VFD) of imported goods creates an unfair advantage for non-resident importers (NRIs). This advantage exists due to NRIs’ ability to declare a lower VFD on goods they import to Canada by using an earlier sale price and not the sale to an actual buyer located in Canada that brought the goods into Canada. The earlier sale price that is used in these instances occurs in the earlier stages of the supply chain, including a sale transaction between a foreign-based manufacturer and an NRI.

The proposed amendments would clarify which sale is to be used to calculate the duty on imported goods by (i) defining the term “sold for export to Canada”; and (ii) amending the definition of the term “purchaser in Canada”.

Comments can be provided in the Canada Gazette, Part I, Volume 157, Number 21: Regulations Amending the Valuation for Duty Regulations