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ARTICLE · 15 JANUARY 2026

Customs 101: No Proof, No Freight Deduction?

Millar Kreklewetz
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Transaction value has traditionally been used to value imported goods to Canada in approximately 95% of cases. An important deduction available to importers when using transaction value...

CanadaInternational Law
Robert Kreklewetz
Robert Kreklewetz
Daniel Zhang
Daniel Zhang

Transaction value has traditionally been used to value imported goods to Canada in approximately 95% of cases. An important deduction available to importers when using transaction value is for transportation costs incurred from the place of direct shipment to Canada.

In Korhani of Canada Inc. v. CBSA (AP-2022-030), the Canadian International Trade Tribunal ("CITT") serves notice that it supports the CBSA's position that transportation cost deductions must be supported by objective documentation evidencing the actual transportation costs, such as payment records or shipping invoices.

Korhani of Canada Inc. v. CBSA

In Korhani, the appellant imported area rugs into Canada and claimed deductions for international transportation costs when determining value for duty.

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