Proposed ‘Last Sale’ Rule to Impact U.S. Exporters and Resident Importers

Trade Update • June 21, 2023

he Canada Border Services Agency (CBSA) has announced proposed amendments to the Valuation for Duty Regulations. These amendments aim to address an unfair advantage by non-resident importers (NRIs)/U.S. exporters and create a more equitable trade environment; however, this potential change will have a far reaching severe impact beyond NRIs. The proposed regulatory changes are open for public consultation until July 26, 2023, and we strongly encourage all to submit their comments.

Why the Change?

Non-resident importers (NRIs) currently can declare a lower Value for Duty (VFD) on imported goods by utilizing an earlier sale price, which often occurs in the earlier stages of the supply chain. This practice creates an unfair advantage for NRIs, as they can bypass the sale to an actual buyer located in Canada. To rectify this issue, the proposed amendments would clarify the determination of duty calculation by defining the term “sold for export to Canada” and amending the definition of “purchaser in Canada.”

Who Would be Impacted?

These changes will increase declared values for duty, affecting customs duties and GST payable for imported goods. The impact will be on non-resident importers/U.S. exporters of goods into Canada, resident importers, wholesalers, retailers, and e-commerce sellers. The change will require the use of the selling price instead of the purchase price as the basis for the value for duty, where a sale to another customer in Canada has been arranged prior to importation.

Submit Your Comments – It’s Vital

We strongly encourage all stakeholders and industry representatives to actively participate in the consultation process during the 30-day period until July 26, 2023. Your feedback and insights are valuable in shaping the final regulations and ensuring they reflect the interests and needs of the trading community as a whole.

How to Submit Your Comments

Comments can be provided within chosen sections of the Canada Gazette, Part I, Volume 157, Number 21: Regulations Amending the Valuation for Duty Regulations.

GHY’s Support

Associations are seeking that CBSA’s Border Commercial Consultative Committee engage a deeper study and review. GHY is a member of many of the associations actively lobbying on this matter and, in particular, ieCanada (Canadian Association of Importers and Exporters) who has shown the strongest leadership in submissions, advocacy, and collaboration. We will be supporting ieCanada’s submission and welcome adding your support.

Businesses may comment direct or share your desire to support supporting ieCanada’s submission by responding to


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