CBSA Proposes “Last Sale” Rule for Customs Valuation
On May 27, 2023, the Canada Border Services Agency (CBSA) announced proposed changes to the Valuation for Duty Regulations, which were published in the Canada Gazette located here: https://www.gazette.gc.ca/rp-pr/p1/2023/2023-05-27/html/reg1-eng.html. These proposed changes will significantly impact non-resident and resident importers.
If accepted, these changes will increase declared values for duty, affecting customs duties and GST payable for imported goods. The impact will be on non-resident and resident importers. Both will be required to use the selling price instead of the purchase price as the basis for the value for duty where a sale to another customer in Canada has been arranged prior to importation. This will specifically impact wholesalers, retailers, and e-commerce sellers.
Interested stakeholders are strongly encouraged to make representations concerning the proposed regulations until July 26, 2023.
Source: Canada Border Services Agency (CBSA)
For information and resources on CARM, with Farrow’s CARM page.
