Share your thoughts: Consultation on revisions to previously proposed amendments to the Valuation for Duty Regulations

Current status: Open

Opened on December 3, 2025 and will close on January 23, 2026.

Join in: How to participate in the consultation

Send an email to ctpd/dpsce@cbsa-asfc.gc.ca with your ideas or comments on the proposed revisions to the amendments.

Who is the focus of this consultation

The CBSA would like to hear from:

• Canadian resident importers
• Canadian subsidiaries of foreign parent companies
• Any other interested stakeholders

What is the objective of this consultation

The CBSA seeks to address industry concerns received during the Canada Gazette, Part I consultations that took place between May 27, 2023, and July 26, 2023, especially the concerns around ambiguity that were documented in the What we heard report. We want to make sure that the final design and administration of the proposed amendments do not affect Canadian resident importers who currently declare the purchase price from foreign suppliers.

After careful consideration of the feedback received on the proposed amendments to the Valuation for Duty Regulations, we are giving affected industry stakeholders the renewed opportunity to provide feedback on the revised regulatory amendments under consideration. Refer to the summary of proposed revisions.

The CBSA is also inviting you to complete a survey that will allow us to learn how importers value goods and structure sales. Your feedback will support our ongoing efforts to ensure the intent of the regulations is achieved.

The CBSA is committed to transparency and open dialogue with the importer community. We work to ensure that importation requirements are clear, fair and consistently applied.  Our aim is to safeguard the Canadian economy by enforcing regulations that foster equitable trade and eliminate any unfair advantages, helping Canadian companies to compete on a level playing field.

What are we looking to receive feedback on

Provide your ideas and input by email on the summary of proposed revisions.

Feedback should focus on whether the revised regulations address the key concerns raised during the initial 2023 Canada Gazette Part I consultations, and recommend how best to ensure that the intent of the proposed regulations is achieved.

The key concerns raised during the 2023 Canada Gazette Part I consultations were:

• unintended inclusion of domestic sales as a sale for export to Canada
• misalignment with the Customs Valuation Agreement

Summary of the proposed revisions

Revision 1: A new subsection has been drafted to ensure that the excluded situations identified in Advisory Opinion 1.1 of the World Customs Organization’s Customs Valuation Compendium are not to be considered a sale for export to Canada (for example, consignment arrangements).

As the Customs Valuation Compendium is only available through paid subscription, we will make this information available to all importers in the included annex on agreements, understandings and arrangements.

Revision 2: A subsection has been drafted to ensure that where one of these excluded situations exists in a series of sales and would have been the last sale (agreement, arrangement, or understanding) for export, had it not been excluded, the requirement that the goods are “sold for export to Canada” will not be met. An earlier sale cannot be applied to use the transaction value method (TVM) and a subsequent methodology of valuation, not TVM, must be used. Conversely, if an excluded situation exists earlier in the supply chain, the last sale will be used.

For example, if goods are shipped to Canada on consignment, and the consignor sourced the goods from a foreign supplier and had them shipped directly to the consignee, neither the consignment agreement nor the sale between the consignor and foreign supplier can be used to value the goods.

Revision 3: A new subsection has been drafted to exclude sales between two persons located in Canada (individuals who ordinarily reside in Canada or businesses that meet certain specified conditions) from being considered in determining the last sale (agreement, understanding, or arrangement) for export on which the value for duty will be based.

The specified conditions for businesses have been developed to ensure that they have a substantial presence in Canada, including:

• having its primary place of business physically located in Canada, which cannot be met through the use of a branch or agent
• having decision-making power over the day-to-day operations in Canada
• having the functions in relation to the ordering and purchasing of the goods carried out at its place of business in Canada
• processing requests in relation to the goods, such as with respect to defects and returns, in Canada
• keeping its books and records in Canada
• holding its primary bank accounts in Canada
• having fixed assets in Canada
• paying income tax in Canada

The exclusion for such sales only applies in a series of sales scenario. If there is only one sale that causes the goods to be exported to Canada, and that sale is between two persons in Canada, that sale price will be used, as is currently the case (for example, goods owned by a Canadian business are stored in a foreign warehouse and are sold and shipped to a Canadian customer).

Annex: Agreements, understandings or arrangements that do not meet the definition of sold for export to Canada

An agreement, understanding or any other type of arrangement referred to in subsections 2.01(1) of the Valuation for Duty Regulations, does not include an agreement, understanding or any other type of arrangement:

1. that provides goods free of charge (for example, gifts, samples, promotional items)
2. in respect of consignment goods, where a consignee has been authorized to sell the goods on behalf of the owner of the goods (the consignor)
3. that pertains to the importation of the goods by an intermediary (for example, sales agent), who never purchases the goods, for sale on behalf of the supplier^{Footnote 1}
4. between persons that are not separate legal entities (for example, branches), in respect of the importation of the goods
5. for the provision of goods in accordance with a leasing or rental contract
6. in respect of goods supplied on loan, which remain the property of the sender
7. for the destruction of goods (for example, waste or scrap), where the goods are not purchased but rather the sender pays for the destruction services

Related information

• Consultation history:
  • What we heard report: Proposed regulatory amendments to the Valuation for Duty Regulations
  • 2023 consultation: Proposed regulatory amendments to the Valuation for Duty Regulations
  • 2021 consultation: Potential regulatory amendments to the Valuation for Duty Regulations
• Canada Gazette, Part 1, Volume 157, Number 21: Regulations Amending the Valuation for Duty Regulations
• Information about Valuation
• Customs Valuation Handbook: How to establish the value for duty of imported goods
• Valuation for Duty Regulations

Contact us

Commercial and Trade Policy Division
Traveller, Commercial, and Trade Policy Directorate
Strategic Policy Branch, Canada Border Services Agency
Email: ctpd/dpsce@cbsa-asfc.gc.ca