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ARTICLE · 14 JUNE 2023

CBSA's Proposal To Modernize The Valuation For Duty Regulations

McMillan LLP
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E-commerce has gained traction over the course of the COVID-19 pandemic and shows no sign of slowing down. From February 2020 to July 2022, retail e-commerce increased by 67.9% in Canada.

CanadaInternational Law
Jonathan O'Hara
Jonathan O'Hara
William Pellerin
William Pellerin
Peter Jarosz
Peter Jarosz
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Tayler Farrell
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E-commerce has gained traction over the course of the COVID-19 pandemic and shows no sign of slowing down. From February 2020 to July 2022, retail e-commerce increased by 67.9% in Canada.1 This increase in e-commerce has reduced the use of brick-and-mortar stores and also expanded the participation of non-resident importers in cross border transactions.

The CBSA has proposed amendments to the value for duty ("VFD") rules, which are used to determine duty payments, and according to the CBSA currently favour non-resident importers in certain circumstances.2 However, the proposed amendments, as drafted, have effects that extend beyond non-resident importers.

It is important to consider how the current regulatory framework and the proposed changes may impact your business. Any interested parties and relevant stakeholders may choose to provide their written comments on the draft regulations during the consultation period which concludes June 26, 2023.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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