Valuation for Duty Regulations (SOR/86-792)

Regulations are current to 2013-04-29

Valuation for Duty Regulations

SOR/86-792

CUSTOMS ACT

Registration 1986-07-24

Regulations Respecting the Determination of the Value for Duty of Imported Goods

P.C. 1986-1668  1986-07-23

Whereas, pursuant to subsection 164(3) of the Customs ActFootnote *, a copy of the proposed Regulations respecting the determination of the value for duty of imported goods was published in the Canada Gazette Part I on March 15, 1986 and a reasonable opportunity was thereby afforded to interested persons to make representations with respect thereto.

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsection 48(3), subparagraph 48(5)(a)(iii), paragraph 51(4)(a), subsection 52(2) and paragraph 164(1)(i) of the Customs Act, is pleased hereby to make the annexed Regulations respecting the determination of the value for duty of imported goods, effective on the day that the Customs ActFootnote *, other than paragraph 99(1)(b), subsection 99(2) to (4) and sections 192 to 194 thereof, comes into force.

SHORT TITLE

1. These Regulations may be cited as the Valuation for Duty Regulations.

INTERPRETATION

[SOR/97-443, s. 1(F)]

2. The definitions in this section apply in these Regulations.

“Act”

“Act” means the Customs Act. (Loi)

“permanent establishment”

“permanent establishment”, in respect of a person, means a fixed place of business of the person and includes a place of management, a branch, an office, a factory or a workshop through which the person carries on business. (établissement stable)

“resident”

“resident” means

  • (a) an individual who ordinarily resides in Canada;

  • (b) a corporation that carries on business in Canada and of which the management and control is in Canada; and

  • (c) a partnership or other unincorporated organization that carries on business in Canada, if the member that has the management and control of the partnership or organization, or a majority of such members, resides in Canada. (résident)

  • SOR/97-443, s. 2.

MEANING OF “PURCHASER IN CANADA”

2.1 For the purposes of subsection 45(1) of the Act, “purchaser in Canada” means

  • (a) a resident;

  • (b) a person who is not a resident but who has a permanent establishment in Canada; or

  • (c) a person who neither is a resident nor has a permanent establishment in Canada, and who imports the goods, for which the value for duty is being determined,

    • (i) for consumption, use or enjoyment by the person in Canada, but not for sale, or

    • (ii) for sale by the person in Canada, if, before the purchase of the goods, the person has not entered into an agreement to sell the goods to a resident.

  • SOR/97-443, s. 2.

DETERMINATION OF THE VALUE FOR DUTY OF IMPORTED GOODS

3. For the purposes of subsection 48(3) of the Act, in determining whether the transaction value of goods being appraised closely approximates another value referred to in that subsection, there shall be taken into consideration

  • (a) the following factors, namely,

    • (i) the nature of the goods being appraised,

    • (ii) the nature of the industry that produces the goods being appraised,

    • (iii) the season in which the goods being appraised are imported, and

    • (iv) whether a difference in values is commercially significant; and

  • (b) any difference in respect of the sales being compared, determined on the basis of sufficient information and relating to

    • (i) the trade levels at which the sales take place,

    • (ii) the quantity levels of the sales,

    • (iii) any of the amounts referred to in subsection 48(5) of the Act, and

    • (iv) the costs, charges or expenses that are incurred by a vendor when selling to a purchaser to whom he is not related, but are not incurred when a vendor sells to a purchaser to whom he is related.