CARM: What all importers need to know about CARM

Universal Logistics - Take The Right Route Logo with 70 Years Badge

Route Article

What you need to know about the CBSA’s new approach to Transfer Pricing

     Customs icon

Earlier this year, Canada Border Services Agency (CBSA) announced a new approach to Transfer Pricing (the valuation method for determining the price paid or payable for trade between related parties) that has multiple implications in terms of  refunds, payments of duties and taxes and Administrative Monetary Penalty System (AMPS) penalties.

  • Refunds (on dutiable shipments) are now possible when there is a reduction in price paid or payable post import of dutiable goods.
  • Duties and taxes could be applied on upward pricing adjustments as CBSA believes that these amounts are part of the Value for Duty (VFD) of imported goods.
  • The new approach to Transfer Pricing penalties comes into play if an importer of duty free items (e.g. books) fails to submit voluntary adjustments, reflecting downward price reductions occurring after importation.

The CBSA’s existing Directive Memorandum D13-3-6 “Income Tax Transfer Pricing and Customs Valuation” from 2006 is expected to be revised to reflect the CBSA’s new position.

Need help to determine how these changes impact your existing Transfer Pricing agreements?  Call Brian Rowe, General Manager – Customs Consulting Services at (905) 882-4880, ext. 213. 

Quick Tip #3
How to avoid customs penalties for non-compliance

Sooner or later, your business will be audited by Customs (CBSA) to ensure you have not committed violations that are subject to AMPS (Administrative Monetary Penalty System) penalties.

Switch to a Logistics
Partner Who Cares

Click the button below to find out why we’ve been Canada’s most trusted freight forwarder and customs broker for over 75 years.

Professional business people team meeting and working in corporate office concept

Register now to learn more about our

101 Logistics Quick Tips

Available exclusively from Universal Logistics