Below is a summary of elements being considered by the CBSA for potential future regulatory amendments and for which these consultations are conducted.
1. Define the scope of “sold for export to Canada” to specify the relevant transaction for export which forms the basis of the transaction value of the goods.
This proposal would ensure that the value for duty of imported goods determined under the transaction value method is based on the sale that causes the goods to be exported to Canada, i.e. the last transaction in the commercial chain, irrespective of the chronological order of the sales. Under the proposal, the term “sale” would be constructed in a broad sense, which would include any type of arrangements that cause the goods to be exported to Canada.
2. Clarify the definition of “purchaser in Canada”, as well as the associated definitions of “resident” and “permanent establishment”, and ensure the relevant sale for export forms the basis of the transaction value of the goods.
The intent of these proposals is to remove any ambiguity on how to qualify as a permanent establishment. To qualify, the person would need to:
- be the purchaser of the goods imported to Canada
- have a fixed place of business in Canada, through which the goods are purchased
and - have the authority to enter into the arrangement/sale (the permanent establishment could not, under this proposal, be a conduit in the sale)
A non-resident importer, who does not have a permanent establishment, would only qualify as a purchaser in Canada if the goods were imported:
- for their own use
or - on speculation of future sales (meaning the sale of the goods to a person in Canada was not arranged in any way before the goods arrived in Canada)
This notice is available in its entirety on the Canada Border Services Agency website.