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.
The information in this publication is current as of July 12, 2023.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.