Proposed CBSA Valuation for Duty Regulations

Leveling the Playing Field for Canadian Importers

June 22, 2023 – The Canada Border Services Agency (CBSA) is proposing vital amendments to the Valuation for Duty Regulations to bolster the statutory and regulatory frameworks. These changes aim to promote fair competition between Canadian importers and foreign-based counterparts while addressing lost customs revenue for the Government of Canada.

Aligning International Standards

Current regulations on determining the value for duty of imported goods in Canada do not align with international consensus set by the World Customs Organization. This disparity provides foreign-based importers with an unfair advantage, enabling them to declare lower-priced sales and pay reduced duties. Through the establishment of clear definitions for “sold for export to Canada” and a revision of the definition of “purchaser in Canada,” an effort is made to rectify this imbalance. These amendments will ensure a consistent and reliable approach to calculating the value for duty of all imported goods.

Key Considerations:

• In 2022, the CBSA assessed over $39 billion in duties and taxes, underscoring the significance of effective customs processes.
• The growing prominence of e-commerce necessitates adaptable regulatory frameworks, with a 67.9% increase in retail e-commerce sales between February 2020 and July 2022.
• Proposed changes align with the government’s commitment to fair and consistent duty and tax collection, as outlined in Budget 2021.
• Previous informal consultations held from June 4 to July 4, 2021, highlighted the importance of stakeholder engagement.

For more information and the full news release, click here.