A "value for duty" must be declared for all goods imported to Canada in accordance with the valuation provisions of the Customs Act (the act), regardless of the circumstances of their importation. The value for duty is the base figure on which duty you may owe on your goods is calculated. Even if you do not owe duty, the value for duty of goods must still be established so that any applicable assessment of the goods and services tax, provincial sales tax or harmonized sales tax may be calculated.
Sections 44 to 56 of the act, Valuation for Duty Regulations, Direct Shipment of Goods Regulations and Currency Exchange for Customs Valuation Regulations address customs valuation requirements.
Methods of valuation
Value for duty must be established using one of the six methods of customs valuation identified in sections 48 to 53 of the act:
- Section 48 – transaction value method
- Section 49 – transaction value of identical goods method
- Section 50 – transaction value of similar goods method
- Section 51 – deductive value method
- Section 52 – computed value method
- Section 53 – residual basis of appraisal method
You have to use the first of the six methods, the transaction value method, whenever possible to determine the customs value of imported goods.
If you cannot establish the value for duty of your imported goods using this first method, you must consider the alternatives in sequence and identify the method that is appropriate.
Memoranda in the D13 series specifically address customs valuation.
For more detailed information on Canada’s customs valuation legislation, policies and rulings please see the related links, including the Customs Valuation Handbook basic reference tool.
National customs rulings are written statement provided by the CBSA outlining how the provisions of existing customs legislation would apply to goods to be imported into Canada. Importers, foreign exporters or foreign producers are strongly encouraged to request a ruling if they have any doubt as to the applicable valuation method to determine value for duty of goods.
Memorandum D11-11-1, provides more information on National customs rulings.
For further information pertaining to rulings, refer to: Rulings for tariff classification, valuation, origin and marking: Overview page
The CBSA issues national Customs ruling within 120 days of receipt of all necessary and complete information.
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