Earlier this year, the Canada Border Services Agency (CBSA) tabled proposed regulations that would have added major uncertainties to the customs valuation process.
In particular, the proposal from CBSA implied that the value for duty calculations might be based on domestic transactions: for example, the wholesale price charged to a retailer by a Canadian wholesaler.
In July, the Canadian Apparel Federation (CAF) worked with hundreds of apparel companies across the country to bring the industry’s concerns to CBSA. This input is now available online, and the number of comments from this industry is readily apparent. In response, CBSA has issued a Consultation Notice which states clearly that: “The policy objective is not to use a price in a sale between a Canadian resident importer and its Canadian customer as the basis for determining the value for duty.”
This is a positive first step in dealing with this issue. CAF is continuing to monitor the development of the draft regulations.
Contact Bob Kirke at CAF for more details.