Valuation of Imported Goods

To Whom Does This Apply?

Summary

To calculate the amount of duty and tax applicable to an imported good, importers must first establish the value for duty of the good. The Canada Border Services Agency (CBSA) regional Customs Client Services officers applying the valuation provisions of the Customs Act can assist importers establish their value for duty.

There are six methods of customs valuation. Most goods imported to Canada are valued under Transaction Value method. This method bases the value for duty on the price paid or payable for goods, with some additions, (for example, selling commissions and packing costs) or deductions (for example, certain transportation charges). There are some limitations to using the Transaction Value method (for example, restrictions or conditions on a sale). If the transaction value method does not apply, one of five alternative methods, considered in sequential order, can be used to establish value for duty.

Information

The CBSA published administrative guidelines to help importers to correctly value their goods. These guidelines are contained in the Departmental Memoranda D13 series, available on-line or at any customs office.

Travellers can find valuation information in the I declare booklet, available on-line or from any customs office.

Appeals

Under the Customs Act, importers can request a re-determination of the value for duty. Importers who disagree with a re-determination decision made by the CBSA can appeal to the President of the CBSA through a regional Canada Customs Appeals office. A further appeal can be made to the Canadian International Trade Tribunal (CITT), and a CITT decision can be appealed to the Federal Court of Canada on a point of law. Time limits govern the appeal process.

If you require personal assistance contact the Customs Client Services Office closest to you (see Related Reading: Customs Offices - Supplement or from Canada Border Service Agency's Web site for a list of addresses).

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

Ontario Contact(s):
See National Contact.