In a notice on May 27, 2023, the Canada Border Services Agency (CBSA) issued a request for comments on a proposal to amend the Valuation for Duty Regulations (VFD). According to the notice, the amendments would “provide clearer direction to importers when determining which sale is to be used for assessing the value of their imports, with the intention of establishing a level playing field among all importers, while simultaneously reducing lost customs revenues to the Government of Canada in duties paid on lower VFD.” The changes are aligned with the World Trade Organization’s (WTO) Customs Valuation Agreement. Comments will be accepted until June 26, 2023.

According to CBSA, “the proposed regulatory amendments would

• Ensure that Canadian importers that compete with NRIs are not at a disadvantage as a result of the current regulatory framework, which allows the latter to declare a lower purchase price when calculating VFD;
• Provide a legal basis to ensure the government collects duties on the sale that brought the goods to Canada, thereby preventing revenue leakage stemming from NRIs ability to declare an earlier sale in the supply chain;
• Ensure that Canada meets its obligations under the World Trade Organization’s Customs Valuation Agreement and to Canada’s trading partners regarding the methods of calculating VFD; and
• Ensure that Canada fosters a fair and predictable environment for the trading community that is consistent with the objectives of free and liberalized trade and in compliance with the internationally agreed methods of calculating VFD.”

CBSA details the regulation changes, including example scenarios, in the notice here:

https://www.gazette.gc.ca/rp-pr/p1/2023/2023-05-27/html/reg1-eng.html