Value for Duty of Promotional Material

Memorandum D13-11-4

Ottawa, April 10, 2013

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In Brief

  • The content of this memorandum has been reviewed and there are no policy or procedural changes.

This memorandum outlines and explains the method by which the value for duty of promotional material may be determined.

Guidelines and General Information

1. If the goods are sold for export to Canada to a purchaser in Canada, the value for duty can be determined under the transaction value method (section 48 of the Customs Act) provided that the price paid or payable for the goods can be determined and adjusted in accordance with subsection 48(5) of the Customs Act, as necessary, and that the other requirements of that section are met.

2. If the promotional material is included in a shipment of other goods, for example, a shipment of electric ranges, the entire shipment could be treated as a package deal provided the transaction meets the definition of what constitutes a package deal. The total value of the shipment could then be apportioned over the promotional material and the ranges. In making the apportionment, the price or cost breakdowns must be reasonable and based on sufficient information. Guidelines illustrating how an apportionment of the total package price may be made are outlined in Memorandum D13-3-9, Package Deals. In apportioning the total package price, the value for duty of promotional material may be determined in accordance with the instructions provided in Memorandum D13-11-3, Value for Duty of Printed or Lithographed Matter, Financial and Others Instruments (Customs Act, Sections 48 to 53).

3. Where the promotional material is not part of a package deal and cannot be valued under section 48 of the Customs Act because it has not been sold to a purchaser in Canada and/or the price paid or payable cannot be determined, the value for duty must be determined under one of the alternative methods of valuing imported goods (see Memorandum D13-11-3).

Additional Information

4. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time/ except holidays). TTY is also available within Canada: 1-866-335-3237.


Issuing office :
Trade Programs Directorate
Headquarters file :
Legislative references :
Customs Act, sections 48 to 53
Other references :
Superseded memorandum D :
D13-11-4, March, 28 2001
Date modified: