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Customs Act (R.S.C., 1985, c. 1 (2nd Supp.))

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Act current to 2021-12-23 and last amended on 2021-04-01. Previous Versions

PART IIICalculation of Duty (continued)

Duties Based on Percentage Rates (continued)

Transaction Value of Identical Goods

Marginal note:Transaction value of identical goods as value for duty

  •  (1) Subject to subsections (2) to (5), where the value for duty of goods is not appraised under section 48, the value for duty of the goods is, if it can be determined, the transaction value of identical goods, in a sale of those goods for export to Canada, if that transaction value is the value for duty of the identical goods and the identical goods were exported at the same or substantially the same time as the goods being appraised and were sold under the following conditions:

    • (a) at the same or substantially the same trade level as the goods being appraised; and

    • (b) in the same or substantially the same quantities as the goods being appraised.

  • Marginal note:Where identical goods sold under different conditions

    (2) Where the value for duty of goods being appraised cannot be determined under subsection (1) because identical goods were not sold under the conditions described in paragraphs (1)(a) and (b), there shall be substituted therefor, in the application of subsection (1), identical goods sold under any of the following conditions:

    • (a) at the same or substantially the same trade level as the goods being appraised but in different quantities;

    • (b) at a trade level different from that of the goods being appraised but in the same or substantially the same quantities; or

    • (c) at a trade level different from that of the goods being appraised and in different quantities.

  • Marginal note:Adjustment of transaction value of identical goods

    (3) For the purposes of determining the value for duty of goods being appraised under subsection (1), the transaction value of identical goods shall be adjusted by adding thereto or deducting therefrom, as the case may be, amounts to account for

    • (a) commercially significant differences between the costs, charges and expenses referred to in subparagraph 48(5)(a)(vi) in respect of the identical goods and those costs, charges and expenses in respect of the goods being appraised that are attributable to differences in distances and modes of transport; and

    • (b) if the transaction value is in respect of identical goods sold under the conditions described in any of paragraphs (2)(a) to (c), differences in the trade levels of the identical goods and the goods being appraised or the quantities in which the identical goods were sold and the goods being appraised were imported or both, as the case may be.

  • Marginal note:Effect of absence of sufficient information

    (4) Where there is not sufficient information to determine any amount referred to in subsection (3) or the adjustment therefor in relation to the transaction value of identical goods, the value for duty of the goods being appraised shall not be appraised on the basis of that transaction value under this section.

  • Marginal note:Selection of lowest transaction value of identical goods

    (5) Where, in relation to goods being appraised, there are two or more transaction values of identical goods that meet all the requirements set out in subsections (1) and (3) or, where there is no such transaction value but there are two or more transaction values of identical goods sold under the conditions described in any of paragraphs (2)(a) to (c) that meet all the requirements set out in this section that are applicable by virtue of subsection (2), the value for duty of the goods being appraised shall be determined on the basis of the lowest such transaction value.

  • R.S., 1985, c. 1 (2nd Supp.), s. 49
  • 2009, c. 10, s. 8

Transaction Value of Similar Goods

Marginal note:Transaction value of similar goods as value for duty

  •  (1) Subject to subsections (2) and 49(2) to (5), where the value for duty of goods is not appraised under section 48 or 49, the value for duty of the goods is, if it can be determined, the transaction value of similar goods, in a sale of those goods for export to Canada, if that transaction value is the value for duty of the similar goods and the similar goods were exported at the same or substantially the same time as the goods being appraised and were sold under the following conditions:

    • (a) at the same or substantially the same trade level as the goods being appraised; and

    • (b) in the same or substantially the same quantities as the goods being appraised.

  • Marginal note:Application of section 49

    (2) Subsections 49(2) to (5) apply to this section in respect of similar goods and wherever in those subsections the expression “identical goods” is referred to, there shall be substituted therefor the expression “similar goods”.

  • R.S., 1985, c. 1 (2nd Supp.), s. 50
  • 2009, c. 10, s. 9

Deductive Value

Marginal note:Deductive value as value for duty

  •  (1) Subject to subsections (5) and 47(3), where the value for duty of goods is not appraised under sections 48 to 50, the value for duty of the goods is the deductive value of the goods if it can be determined.

  • Marginal note:Determination of deductive value

    (2) The deductive value of goods being appraised is

    • (a) where the goods being appraised, identical goods or similar goods are sold in Canada in the condition in which they were imported at the same or substantially the same time as the time of importation of the goods being appraised, the price per unit, determined in accordance with subsection (3) and adjusted in accordance with subsection (4), at which the greatest number of units of the goods being appraised, identical goods or similar goods are so sold;

    • (b) where the goods being appraised, identical goods or similar goods are not sold in Canada in the circumstances described in paragraph (a) but are sold in Canada in the condition in which they were imported before the expiration of ninety days after the time of importation of the goods being appraised, the price per unit, determined in accordance with subsection (3) and adjusted in accordance with subsection (4), at which the greatest number of units of the goods being appraised, identical goods or similar goods are so sold at the earliest date after the time of importation of the goods being appraised; or

    • (c) where the goods being appraised, identical goods or similar goods are not sold in Canada in the circumstances described in paragraph (a) or (b) but the goods being appraised, after being assembled, packaged or further processed in Canada, are sold in Canada before the expiration of one hundred and eighty days after the time of importation thereof and the importer of the goods being appraised requests that this paragraph be applied in the determination of the value for duty of those goods, the price per unit, determined in accordance with subsection (3) and adjusted in accordance with subsection (4), at which the greatest number of units of the goods being appraised are so sold.

  • Marginal note:Price per unit

    (3) For the purposes of subsection (2), the price per unit, in respect of goods being appraised, identical goods or similar goods, shall be determined by ascertaining the unit price, in respect of sales of the goods at the first trade level after importation thereof to persons who

    • (a) are not related to the persons from whom they buy the goods at the time the goods are sold to them, and

    • (b) have not supplied, directly or indirectly, free of charge or at a reduced cost for use in connection with the production and sale for export of the goods any of the goods or services referred to in subparagraph 48(5)(a)(iii),

    at which the greatest number of units of the goods is sold where, in the opinion of the Minister or any person authorized by him, a sufficient number of such sales have been made to permit a determination of the price per unit of the goods.

  • Marginal note:Adjustment of price per unit

    (4) For the purposes of subsection (2), the price per unit, in respect of goods being appraised, identical goods or similar goods, shall be adjusted by deducting therefrom an amount equal to the aggregate of

    • (a) an amount, determined in the manner prescribed, equal to

      • (i) the amount of commission generally earned on a unit basis, or

      • (ii) the amount for profit and general expenses, including all costs of marketing the goods, considered together as a whole, that is generally reflected on a unit basis

      in connection with sales in Canada of goods of the same class or kind as those goods,

    • (b) the costs, charges and expenses in respect of the transportation and insurance of the goods within Canada and the costs, charges and expenses associated therewith that are generally incurred in connection with sales in Canada of the goods being appraised, identical goods or similar goods, to the extent that an amount for such costs, charges and expenses is not deducted in respect of general expenses under paragraph (a),

    • (c) the costs, charges and expenses referred to in subparagraph 48(5)(b)(i), incurred in respect of the goods, to the extent that an amount for such costs, charges and expenses is not deducted in respect of general expenses under paragraph (a),

    • (d) any duties and taxes referred to in clause 48(5)(b)(ii)(B) in respect of the goods, to the extent that an amount for such duties and taxes is not deducted in respect of general expenses under paragraph (a), and

    • (e) where paragraph (2)(c) applies, the amount of the value added to the goods that is attributable to the assembly, packaging or further processing in Canada of the goods.

  • Marginal note:Rejection of deductive value

    (5) Where there is not sufficient information to determine an amount referred to in paragraph (4)(e) in respect of any goods being appraised, the value for duty of the goods shall not be appraised under paragraph (2)(c).

  • Definition of time of importation

    (6) In this section, time of importation means

    • (a) in respect of goods other than those to which paragraph 32(2)(b) applies, the date on which an officer authorizes the release of the goods under this Act or the date on which their release is authorized by any prescribed means; and

    • (b) in respect of goods to which paragraph 32(2)(b) applies, the date on which the goods are received at the place of business of the importer, owner or consignee.

  • R.S., 1985, c. 1 (2nd Supp.), s. 51
  • 2001, c. 25, s. 37

Computed Value

Marginal note:Computed value as value for duty

  •  (1) Subject to subsection 47(3), where the value for duty of goods is not appraised under sections 48 to 51, the value for duty of the goods is the computed value of the goods if it can be determined.

  • Marginal note:Determination of computed value

    (2) The computed value of goods being appraised is the aggregate of amounts equal to

    • (a) subject to subsection (3), the costs, charges and expenses incurred in respect of, or the value of,

      • (i) materials employed in producing the goods being appraised, and

      • (ii) the production or other processing of the goods being appraised,

      determined in the manner prescribed; and

    • (b) the amount, determined in the manner prescribed, for profit and general expenses considered together as a whole, that is generally reflected in sales for export to Canada of goods of the same class or kind as the goods being appraised made by producers in the country of export.

  • Marginal note:Amounts included

    (3) Without limiting the generality of paragraph (2)(a), the costs, charges, expenses and value referred to in that paragraph include:

    • (a) the costs, charges and expenses referred to in subparagraph 48(5)(a)(ii);

    • (b) the value of any of the goods and services referred to in subparagraph 48(5)(a)(iii), determined and apportioned to the goods being appraised as referred to in that subparagraph, whether or not such goods and services have been supplied free of charge or at a reduced cost; and

    • (c) the costs, charges and expenses incurred by the producer in respect of engineering, development work, art work, design work, plans or sketches undertaken in Canada that were supplied, directly or indirectly, by the purchaser of the goods being appraised for use in connection with the production and sale for export of those goods, apportioned to the goods being appraised as referred to in subparagraph 48(5)(a)(iii).

  • Definition of general expenses

    (4) For the purposes of this section, general expenses means the direct and indirect costs, charges and expenses of producing and selling goods for export, other than the costs, charges and expenses referred to in paragraph (2)(a) and subsection (3).

Residual Method

Marginal note:Residual basis of appraisal

 Where the value for duty of goods is not appraised under sections 48 to 52, it shall be appraised on the basis of

  • (a) a value derived from the method, from among the methods of valuation set out in sections 48 to 52, that, when applied in a flexible manner to the extent necessary to arrive at a value for duty of the goods, conforms closer to the requirements with respect to that method than any other method so applied; and

  • (b) information available in Canada.

General

Marginal note:Goods exported to Canada through another country

 For the purposes of sections 45 to 55, where goods are exported to Canada from any country but pass in transit through another country, the goods shall, subject to such terms and conditions as may be prescribed, be deemed to be shipped directly to Canada from the first mentioned country.

  • R.S., 1985, c. 1 (2nd Supp.), s. 54
  • 2001, c. 25, s. 38(F)

Marginal note:Value for duty in Canadian currency

 The value for duty of imported goods shall be computed in Canadian currency in accordance with regulations made under the Currency Act.

Marginal note:Informing importer of determination of value

 The importer of any goods, on his written request, shall be informed in writing of the manner in which the value for duty of the goods was determined.

Duties Based on Specific Quantities or Specific Values

Marginal note:Specific quantities or specific values

 Where duties are imposed on goods according to a specific quantity or a specific value, such duties shall be deemed to apply in the same proportion to any larger or smaller quantity or value, and to any fractional part of such specific quantity or value.

Marking Determination

Marginal note:Marking determination

  •  (1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section may, at or before the time goods imported from a NAFTA country are accounted for under subsection 32(1), (3) or (5), in the prescribed manner and subject to the prescribed conditions, make a determination as to whether the goods have been marked in the manner referred to in section 35.01.

  • Marginal note:Deemed determination

    (2) If an officer does not make a determination under subsection (1) in respect of goods imported from a NAFTA country at or before the time the goods are accounted for under subsection 32(1), (3) or (5), a determination as to whether the goods have been marked in the manner referred to in section 35.01 shall be deemed to have been made in accordance with any representations that have been made in respect of the marking of the goods by the person who accounted for the goods.

  • 1993, c. 44, s. 88
  • 1997, c. 36, s. 165
  • 2001, c. 25, s. 39
  • 2005, c. 38, s. 72

Determination, Re-determination and Further Re-determination of Origin, Tariff Classification and Value for Duty of Imported Goods

Marginal note:Application of sections 58 to 70

 For the purposes of sections 58 to 70,

  • (a) the origin of imported goods is to be determined in accordance with section 16 of the Customs Tariff and the regulations under that section;

  • (b) the tariff classification of imported goods is to be determined in accordance with sections 10 and 11 of the Customs Tariff, unless otherwise provided in that Act; and

  • (c) the value for duty of imported goods is to be determined in accordance with sections 47 to 55 of this Act and section 87 of the Customs Tariff.

  • 1988, c. 65, s. 70
  • 1997, c. 36, s. 166
  • 2001, c. 25, s. 40

 [Repealed, 1997, c. 36, s. 166]

Marginal note:Determination by officer

  •  (1) Any officer, or any officer within a class of officers, designated by the President for the purposes of this section, may determine the origin, tariff classification and value for duty of imported goods at or before the time they are accounted for under subsection 32(1), (3) or (5).

  • Marginal note:Deemed determination

    (2) If the origin, tariff classification and value for duty of imported goods are not determined under subsection (1), the origin, tariff classification and value for duty of the goods are deemed to be determined, for the purposes of this Act, to be as declared by the person accounting for the goods in the form prescribed under paragraph 32(1)(a). That determination is deemed to be made at the time the goods are accounted for under subsection 32(1), (3) or (5).

  • Marginal note:Review of determination

    (3) A determination made under this section is not subject to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 59 to 61.

  • R.S., 1985, c. 1 (2nd Supp.), s. 58
  • 1992, c. 28, s. 11
  • 1997, c. 36, s. 166
  • 2005, c. 38, s. 73
 
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