Customs valuation is crucial in international trade for determining import duties and taxes, primarily using the Transaction Value Method (TVM) as outlined in Canada's Customs Act. This method, reflecting Canada's WTO obligations, focuses on the price in a "sale for export to Canada," including a specific requirement for a "purchaser in Canada."

Quentin Vander Schueren, Darrel Pearson and Jessica Horwitz write in the Taxnet Pro's Customs & International Trade Newsletter on how recent case law has shaped the understanding of "sale for export." The Canadian International Trade Tribunal's two-step analysis for applying the TVM considers both the transfer of title and the definition of a 'purchaser in Canada'. However, the Canada Border Services Agency's (CBSA) recent adoption of a "last sale" theory, focusing on the final sale in the transaction chain, has led to disputes with the Tribunal, notably in cases involving non-resident importers and their status as "purchasers in Canada." The CBSA's approach, contrasting with the Tribunal's established interpretations, has prompted proposed regulatory amendments to redefine the TVM's application.

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