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ARTICLE · 25 SEPTEMBER 2024

Proposed Value For Duty Amendments - Current Status: Up In The Air!

As we wrote about previously, on May 27, 2023 the Canada Border Services Agency proposed amendments to close what they termed "loopholes" allowing certain importers to use a lower value for duty than what CBSA thought was appropriate.

CanadaInternational Law

As we wrote about previously, on May 27, 2023 the Canada Border Services Agency (the "CBSA") proposed amendments to close what they termed "loopholes" allowing certain importers to use a lower value for duty ("VFD") than what CBSA thought was appropriate.

The draft changes to Canada's Valuation for Duty Regulations (the "Regulations") generated significant feedback from interested parties, but over one year later importers are left wondering about the status of the proposed amendments.

Background – Valuation for Duty

Under the Customs Act, the VFD of imported goods is primarily determined by the transaction value method. Under this method the VFD is generally based on the price paid or payable for the goods when sold for export to Canada to a purchaser in Canada. Applying this rule requires one to identify which transaction is the "sale for export to Canada" and who qualifies as a "purchaser in Canada".

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