Customs Valuation ‘Last Sale’ Rule Proposed by CBSA

On May 27, 2023, the Canada Border Services Agency (CBSA) proposed regulatory amendments to the Valuation for Duty Regulations. These proposed amendments came as a result of consultations launched in July 2021 and were published in the Canada Gazette with a 30-day consultation period that comes to a close on June 26, 2023.

Presently the regulations give an advantage to non-resident importers (NRIs) as they are able to claim a lower value for the goods they import into Canada based on an earlier sale price, rather than the actual sale to a buyer in Canada. The proposed changes would clarify which sale should be used to calculate the customs duties on imported goods by defining the term “sold for export to Canada” and amending the definition of the term “purchaser in Canada.”

These proposed changes will impact NRIs as well as resident importers as they will be required to use the selling price when calculating the value for duty instead of the purchase price if sale to a customer has occurred prior to importing.

For more information – Canada Gazette, Part I, Volume 157, Number 21: Regulations Amending the Valuation for Duty Regulations