Canada: Proposed changes to value for duty regulations

The Canada Border Services Agency is accepting comments until June 26, 2023.

The Canada Border Services Agency is accepting comments until June 26, 2023.

The Canada Border Services Agency (CBSA) on May 27, 2023, released amendments to the valuation for duty (VFD) regulations that are intended to confirm that, when an importer “arranges” to resell goods to a Canadian customer prior to importing the goods into Canada, the value for duty of the goods is based on the selling price to the Canadian customer.

These changes, which are not yet in effect, are intended to address a perceived regulatory gap that, in the CBSA’s view, benefits non-resident businesses by allowing them to pay less customs duty than Canadian resident importers.

The CBSA is accepting comments until June 26, 2023.

KPMG observation

If the regulatory changes are implemented as currently drafted, they could significantly affect a wide range of businesses, including both Canadian and non-resident importers. As a result, importers may need to review the expanded definitions and assess how these changes may affect their existing sales structures and supply chain management and adjust for potential increases in duties. The CBSA will continue to conduct post-importation verifications to enforce compliance.

Read a June 2023 report [PDF 185 KB] prepared by the KPMG member firm in Canada



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