Plain meaning
Rules used to determine the value for duty of imported goods.
Also called
transaction value method
deductive value
value for duty
computed value
Key points
- The primary method is usually transaction value, based on the price paid or payable for goods sold for export to Canada.
- Adjustments may be required for assists, royalties, proceeds, commissions, freight, or other amounts.
- If transaction value cannot be used, alternative methods such as transaction value of identical or similar goods, deductive value, computed value, or residual value may apply.
- Related-party transactions can require extra analysis to show the price is acceptable for customs purposes.
Why it comes up
Customs valuation affects duties, GST/HST on importation, transfer pricing interactions, and customs compliance.