• FR
  • Border Services Agency tackles unfair advantage of importers over manufacturers

    In order to protect the competitiveness of Canadian businesses and respond to the growing volume of electronic commerce, the Canada Border Services Agency (CBSA) is proposing amendments to the Valuation for Duty Regulations that will strengthen the legislative and regulatory frameworks to help Canadian importers compete on a level playing field with foreign-based importers and address the loss of customs revenue to the government.

    Currently, Canada’s regulatory framework for determining the value for duty of imported goods is not in line with the international consensus established by the World Customs Organization. This discrepancy creates an unfair advantage for foreign-based importers, as they can declare a sale at a lower price in the commercial chain for the determination of the value of their goods and, as a result, pay less duty on imported goods. Creating a definition of “sold for export to Canada” and amending the definition of “purchaser in Canada” would address this discrepancy. The proposed regulatory amendments will provide a consistent and reliable method for calculating the value for duty of all imported goods.

    The draft regulations have been published in the Canada Gazette. As ” Well Made Here ” (WMH) is considered an interested party, the deadline for submitting written comments on the draft regulations is June 26, 2023. Interested parties are invited to send their information and impressions to Richard Darveau.

    Fast facts

    • Between January 1 and December 31, 2022, the CBSA imposed more than $39 billion in duties and taxes (customs duties, duties under the Special Import Measures Act, GST and excise taxes).
    • From February 2020 to July 2022, e-commerce retail sales increased by 67.9%, and the proportion of e-commerce retail sales in total retail sales increased from 3.9% in 2019 to 6.2% in 2022, making e-commerce an important platform for business activities.
    • In its 2021 Budget, the Government had proposed changes to the Customs Act to improve the collection of duties and taxes, ensuring that all importers value goods fairly and consistently.
    • From June 4 to July 4, 2021, the CBSA launched an informal consultation on its website regarding this proposed amendment.