Canadian Customs Seek to Modify How “Value for Duty” Is Determined

blog | Jun 06, 2023

The Canadian Border and Services Agency (CBSA) recently posted a draft amendment to the Customs Act that would substantially change how imports are valued, likely increasing the amount of duties or taxes payable in many cases. 

The Regulations Amending the Valuation for Duty Regulations is currently subject to a 30-day comment period until June 26, 2023. 

The amendment proposes several definition changes related to determining import valuation including: 

2.01 (1) For the purposes of subsection 45(1) of the Act, sold for export to Canada means, in respect of goods, to be subject to an agreement, understanding or any other type of arrangement—regardless of its form—to be transferred, in exchange for payment, for the purpose of being exported to Canada, regardless of whether the transfer of ownership of the goods is completed before or after the goods are imported. 

(2) If the goods are subject to two or more agreements, understandings or other types of arrangement described in subsection (1), the applicable agreement, understanding or arrangement for the purposes of that subsection is the one respecting the last transfer of the goods in the supply chain among the transfers under those agreements, understandings or arrangements, regardless of the order in which the agreements, understandings or arrangements were entered into. 

2.1 For the purposes of subsection 45(1) of the Act, purchaser in Canada means, in respect of goods that are the subject of an agreement, understanding or any other type of arrangement referred to in section 2.01, the person who, under that agreement, understanding or arrangement, purchases or will purchase the goods, regardless of whether the person is the importer of the goods or when the person makes payments in respect of the goods. 

Amongst other policy goals, the CBSA states it is seeking to level import valuation requirements between resident and non-resident importers. Value for duty would no longer be solely based on the sale for export between the seller and Canadian purchaser (often the importer). It would now include the value used in the last sale in Canada that caused the import of the goods. Such changes would impact many Canadian importers, both resident and non-resident, but especially those importing for resale to other domestic parties. 

Canadian importers are encouraged to review and monitor this CBSA proposal closely. Formal comments may be provided through the published amendment. Delmar will continue to provide updates as additional information becomes available. 

CARM Release 2: Are You Ready?  

Release 2 of the CBSA Assessment and Revenue Management (CARM) project is scheduled for October 2023. Do not wait to register your business onto the CARM Client Portal and to delegate authority to Delmar!  


For additional information and assistance, please contact your local Delmar Representative.