Valuation means determining the accurate value of goods. CBSA needs all the goods to be imported and acknowledged into Canada by having a value for duty which refers to the base figure where it should calculate duty and taxes that you owe CBSA for imported goods. There may be goods like samples, replacements, short shipped goods, warranty items etc., you still need to declare a fair market share nonetheless. Clearit Canada got you covered there. There are many ways for customs valuation. These rules make sure that the imported goods comply with the commercial reality and they limit the use of random and fake customs values. Here are the methods of valuating customs.
- Transaction value
Importers must use this method when evaluating the duty value for the price paid for goods imported considering certain adjustments as well. This method is most commonly used. When exporting to Canada, this method is applicable. You also need to understand the difference between price paid and payable. The former is the total sum of all payments directly or indirectly made by the buyer to the vendor. The latter means the total sum owed and made directly or indirectly by the buyer to the vendor. This method must be used to ascertain the customs value of imported goods.
- Transactional value of identical goods
When the method above is not applicable, you must use a determined value for duty of identical goods. These goods are same in all aspects as the goods being valued. The exception holds for minor differences in looks. These differences cannot impact the value of goods as well. For deeming the goods eligible, the production must be done in the same country as identical goods too.
- Transaction value of similar goods
When this process is also not valid, there must be an established value for duty of similar goods determined. In order to be eligible, the value of goods should be:
- Very much same to the similar goods
- Capable of performing the same way
- Commercially interchangeable
- Procured in the same country and manufacturer.
- Deductive method of valuation
If this doesn’t work too, you must consider the deductive value method. The gist is to determine the most common selling price per unit of the goods on which it is being sold to the Canadian customers.
- Computed method of valuation
It refers to the cost of production, profits and general expenses involved in making the imported goods. This must be determined in the origin country when being sold to the Canadian importers.