These are relatively quiet times for new, impactful Canadian
customs regulations, but a few recent postings are of note.
We have regulations amending the accounting for imported goods
and payment of duties regulations which will, when in force, offer
access to the CBSA's CSA program to importers that ordinarily
reside in either Canada or the United States. The addition of the
US importers seems to be responsive to the several US non-resident
importers who have expressed interest in joining the program. The
CSA program is intended to facilitate trade by permitting the
forwarding of trade data and reporting and remitting of payment of
taxes and duties once per month using their own business systems
and processes. US non-resident importers into Canada will receive
all the benefits the program has to offer subject to meeting the
CBSA's requirements. One might expect an increase in the trend
toward control of Canadian customs compliance in the US in the case
of multi-nationally invested companies.
A clarification of the imported goods records regulations has
been announced by the CBSA for commercial goods imported and
released duty free under tariff item 9948.00.00. The CBSA will
allow the importer of the goods to attest to the intended use to be
made rather than require a certificate or other record signed by
the user of the goods attesting their actual use. Relief from the
requirement to obtain a certificate will be seen as essential by
importers of consumer type electronic equipment and other goods
that benefit from a use based tariff preference, which has been the
subject of much debate recently. The importer will, however, remain
obligated to advise the CBSA when it becomes aware of any diversion
and to keep records sufficient to confirm that the full applicable
duties have been paid in such circumstances.
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Since the introduction of the Transaction Value System of customs valuation by Canada on January 1, 1985, the Canada Border Services Agency (CBSA) has maintained a stated policy of denying refund claims of related party importers who seek to amend declared values for duty to account for adjustments that decrease transfer prices after importation.
Our Doing business in Canada publication is a general overview of the principal corporate, tax and other legal considerations that would be of interest to foreign businesses wishing to establish or acquire a business in Canada.