In May 2023 the Canada Border Services Agency (CBSA) invited interested parties to share their views on proposed regulatory amendments to the Valuation for Duty Regulations.
The proposed amendments seek to provide greater certainty when determining which sale for export to Canada to a purchaser in Canada should be used to determine the transaction value of goods.
In total, 335 individuals submitted feedback, either as representatives of a company, an industry body, or in anonymity.
Many respondents supported the policy intentions behind the regulatory amendments, notably to ensure that, in a series of sales, the last sale to the buyer in the country of import (Canada) and not an earlier sale between 2 foreign entities is used as the basis for determining the value for duty.
There was also substantial feedback raising concerns that the proposed language may not achieve the overall intent and could lead to unintended consequences.
The CBSA does not anticipate the administration of these regulatory amendments to change anything for Canadian resident importers who are currently declaring their purchase price from their foreign supplier. Non-resident importers who currently declare their purchase price from their foreign supplier, as opposed to their sale price to a buyer located in Canada, will incur higher duty costs resulting from the regulatory amendments. This is necessary to level the playing field for all importers and achieve the objectives of the proposed regulatory amendments.
Link: CBSA "What we heard report": Proposed regulatory amendments to the Valuation for Duty Regulations