On January 19, 2015, Canada Border Services Agency (CBSA) issued Customs Notice 15-001, Treatment of Downward Price Adjustments in Value for Duty Calculations, announcing that importers may be entitled to duty refunds, if a retroactive transfer price adjustments results in a reduced price payable.

According to a release by International Trade Compliance Update, “The CBSA's new policy presents an opportunity for refund claims where an importer retroactively adjusts the transfer price of imported dutiable goods in accordance with a written agreement that was in effect at the time the goods were imported. This presents the potential for significant duty recovery, since an importer may file a refund claim within four years of the importation subject to the claim.”

In order to take advantage of the revised regulation, Canadian importers must provide support for their claims and also correct the customs entries.

The CBSA notice can be accessed here

The International Trade Compliance Update press release can be accessed here