Mr. Speaker, the proposed amendments published in part I of the Canada Gazette would not increase duties on all products imported into Canada. The proposed amendments seek to provide greater certainty when determining which sale is to be used to determine the transaction value of goods. The proposal intends to address a competitive advantage that favours non-resident importers. Due to a current lack of clarity in regulations, non-resident importers are able to declare a value for duty based on an earlier and lower-priced sale between two foreign entities rather than the sale to an actual buyer located in Canada. The amendments are intended to help Canadian importers compete on a more level playing field with non-resident importers. The intention is to establish a consistent and reliable method for identifying which sale is to be used when calculating the value for duty for all importers.
In response to parts (a)(i) and (ii) of the question, the CBSA is continuing to work on the proposed regulatory amendments to the valuation for duty regulations, and amendments to the proposal are being considered to address stakeholder feedback received through the Canada Gazette, part I, consultation process. The CBSA does not have further consultations planned at this time. The CBSA cannot confirm when the regulations will be published, given that it does not control the Treasury Board process or timing. Regulations are made once the Governor General signs the regulations' order in council. The final regulations are then published in the Canada Gazette, part II, and come into force on the day or days set out in the regulations.
With respect to parts (b) and (c), under the proposal, non-resident importers would now declare the value for duty on the basis of the sale to the buyer in Canada. As a result, non-resident importers would declare a higher value for duty on which duties are calculated. However, as indicated in the “Canada Gazette, Part I, Volume 157, Number 21: Regulations Amending the Valuation for Duty Regulations”, with non-resident importers only accounting for about 11% of the total value for duty declared to the CBSA under the transaction value method, higher prices for Canadians on imported goods and any reduction in competition are expected to be minimal.
Regarding part (d), the regulatory amendments are not anticipated to change anything for Canadian resident importers, who currently declare their purchase price from their foreign supplier. As such, the CBSA does not anticipate an increase in administrative costs to Canadian companies.
Regarding part (e), as indicated in the regulatory impact analysis statement, the CBSA estimates an average increase of $224.7 million in duties per year after implementation.