Proposed Changes to Import Valuation Laws in Canada

The Canada Border Services Agency has proposed a change to the Value for Duty Regulations, which would require the value declared to be the last sale to the buyer in the country of import and not an earlier sale between two foreign entities.

If accepted, this change would have a significant impact to companies acting as non-resident importers (NRIs), as they will no longer be able to use the earlier sale between two foreign entities in the supply chain.

As discussed in the Executive Summary to Canada Gazette, Part I, Volume 157, Number 21: Regulations Amending the Valuation for Duty Regulations, proposed changes are intended to “protect Canadian importers’ ability to compete on a level playing field with NRIs and to provide greater certainty and predictability for the importing community”. If implemented, these changes will have significant cost implications for companies acting as NRIs into Canada.

The proposed regulations can be found here.

If you have any questions, please contact your local Noatum Logistics representative.