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Follow-up: CBSA Proposes “Last Sale” Rule for Customs Valuation

Follow-up: CBSA Proposes “Last Sale” Rule for Customs Valuation - Route Newsletter: October 2023

Further to our Email Alert! of June 19, 2023, concerning CBSA’s Proposed Regulatory Amendments to the Valuation for Duty Regulations which, based on how the proposal was written, would potentially require importers to declare the “last sale” (i.e. a domestic sale from a Canadian importer) as the calculation basis of any duty/GST payable, the CBSA have advised that this was indeed not the intention of the amendment:

What we heard

“The CBSA appreciates the feedback from respondents through the formal Canada Gazette, Part I consultation process. We are currently reviewing the submissions, which are now available online.

Canadian importers and trade chain partners support the policy intentions behind the regulatory amendments, notably to ensure that, in a series of sales, the last sale to the buyer in the country of import (Canada) and not an earlier sale between two foreign entities is used as the basis for determining the value for duty.

However, substantial feedback was received concerning the proposed regulations’ intent to potentially apply to domestic sales. 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.

We will continue to review all comments and take them into consideration for any further amendments to the proposal. We will communicate directly with respondents, if required, and produce a summary that we will publish in the coming months.”

We will continue to keep our clients apprised of key developments in this consultation process.

For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.

Quick Tip #16
Ensure basic information is completed on all commercial invoices

The commercial invoice is the basis for the Canadian customs entry and determines any applicable duties and taxes. Ensuring proper information is included is vital for the accurate processing of your shipment. The following information should always be shown:

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