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May 19, 2020

Material or technical help given to a supplier must be added to the value for duty

In most instances the value of material and even technical help provided to a foreign supplier must be added to the value for duty of the supplier's goods when they are imported into Canada. This type of help is called an "assist" in customs valuation terms.

In its Memorandum on the subject the Canada Border Services Agency defines "Assists" as a term used to describe any goods or services provided free or at a reduced charge by the purchaser for use in the production of imported goods. Typical assists will consist of the some of the following:

 •  materials, components, parts and other goods incorporated in or consumed in the production of the imported goods;

 •  tools, dies, moulds, and other goods utilized in the production of imported goods;

 •  engineering, development work, art work, design work, plans and sketches undertaken elsewhere than in Canada and necessary for the production of the imported goods.

It is important to note that engineering, development work, art work, design work, plans and sketches which are undertaken in Canada are not regarded as assists.

Link: Memorandum D13-3-12 Treatment of Assists in the Determination of the Value for Duty

   


 

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