In the 2021 budget, the federal government introduced Bill C-30 with proposed changes that would affect how some businesses value their goods when imported into Canada. These proposed changes, if implemented, could result in an increase in duties and taxes which ultimately will impact the bottom line of importers.
Most notably, these changes challenge a historical Canadian International Trade Tribunal ruling regarding the term ‘sold for export to Canada’, proposed amendment to the definition of ‘purchaser in Canada’, and introduction of the concept of ‘last sale’.
While these changes primarily affect non-resident importers, they will also impact many Canadian resident importers. Therefore, we recommend companies that import goods into Canada to review the proposed amendments published in the Canada Gazette. The amendments are in a consultation period until July 26, 2023, and all stakeholders are invited to comment on the changes.
While the timeline for implementation of any changes is currently unknown, companies should take steps now to review the proposed changes and seek assistance to understand the potential impacts of the bill.
BDO’s Customs & International Trade services practice is here to help guide your company through the changes that Bill C-30 brings. Please contact one of our team members for more information.