- The Canada Border Services Agency (CBSA) has proposed changes to the Valuation for Duty Regulations, including new definitions for “sold for export to Canada” and “purchaser in Canada,” which are essential in determining the value for duty of imported goods.
- The proposed changes aim to close a regulatory loophole that nonresident importers have exploited, ensure compliance with the World Trade Organization’s Customs Valuation Agreement, and level the playing field between resident and nonresident importers.
- The proposed “sold for export to Canada” definition would be based on the last sale price in the supply chain, while the proposed “purchaser in Canada” definition would be based on the person who purchases or will purchase the goods under the agreement, regardless of their residency or importer status.
- These changes would significantly impact both nonresident and resident importers who currently base their value for duty on purchase prices. Interested stakeholders can make representations to the CBSA until June 26, 2023.
Source EY
