{"id":5077,"date":"2021-10-21T09:20:37","date_gmt":"2021-10-21T13:20:37","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=5077"},"modified":"2021-10-21T09:20:59","modified_gmt":"2021-10-21T13:20:59","slug":"cbsa-value-for-duty","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/cbsa-value-for-duty\/","title":{"rendered":"Amendments to the Customs Act: Valuation of Goods"},"content":{"rendered":"

There were Customs Act amendments proposed by CBSA along with the Canada’s 2021 budget update specifically pertaining to goods valuation. Today, we’ll be pulling from a Gowling WLG<\/a> report on on the proposal.<\/p>\n

As a quick reminder, the Customs Act is the CBSA<\/a>-administered regulations that lay out processes around the movement of goods in and out of Canada. The purpose of the Act is to standardize the collection of duties and control the\u00a0importation and exportation of goods in Canada.<\/p>\n

So, what do the CBSA amendments entail? And how might\u00a0they impact Canadian importers?\u00a0These amendments are specific to how the importer identifies the value of duty for any of the imported goods.<\/p>\n

Without further ado, we will cover everything that Canadian importers need to know about the proposal.\u00a0<\/strong><\/p>\n

The focus of these amendments is to remove any vagueness from definitions, so it’s clear to the interpretation of the regulation if the business qualifies for certain privileges and how to value the goods that they are moving.<\/p>\n

\"value<\/p>\n

There are two key subjects to the amendment that you must be aware of:<\/p>\n

Sold for export to Canada<\/h2>\n

Firstly, defining the scope of the term “sold for export to Canada” to specify in further detail the transactions for which export will be used to value the goods. As defined by CBSA<\/a>:<\/p>\n

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“This proposal would ensure that the value for duty of imported goods determined under the transaction value method is based on the sale that causes the goods to be exported to Canada, i.e. the last transaction in the commercial chain, irrespective of the chronological order of the sales. Under the proposal, the term “sale” would be constructed in a broad sense, which would include any type of arrangements that cause the goods to be exported to Canada.”<\/p>\n<\/blockquote>\n

Purchaser in Canada (and resident & permanent establishment)<\/h2>\n

Secondly, defining the terms “Purchaser in Canada” “resident” and “permanent establishment”, specifically to remove any ambiguity around what it means to qualify for these terms. Under these terms, CBSA explains further:<\/p>\n

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“To qualify, the person would need\u00a0to:<\/p>\n