It is often a daunting exercise to declare an appropriate custom valuation while importing goods across borders around the world as well as in Canada. Many expert and experienced businesspeople complain the same while importing goods not because they are ignorant about the customs, duty and tariffs. But because of the frequently changing rules and regulations often without notice.
Secondly, customs and tariffs do not have a similar regulation across different countries. Every country has its own rules and regulations regarding its import and export customs, and they go on changing time to time. Therefore, you need to be always prompted and informed on the customs, duty as well as tariffs and other fees. Get associated with import to Canada with Clearit to get the most updated and appropriate importation-related information and assistance.
Custom valuation is the appropriate determination of the correct value of your goods while importing them through the customs in order to cross the border of a country. As far as Canada is concerned, customs are regulated by CBSA or Canada Border Services Agency. The CBSA has a basic “value for duty” which is normally counted as the base document for determining the value of your goods based on which you need to further calculate the taxes and duty for the CBSA. However, in spite of the base document’s basic “value for duty”, there are many other tricky components which are not easy to grasp and this the reason often customs valuation ends up with complications.
Though each country has its own trade-related rules and regulations, they cannot formulate rules and regulation as they want. The WTO or World Trade Organization has a basic guide for determining the customs valuation for importation. The WTO agreement has prescribed a set of rules or methods to determine the custom valuation. One of the methods is “Transaction Value” and under Transaction Value, the transaction value of identical goods, and the transaction value of similar goods.
Then there are the “Deductive Method of Valuation”, “Computed Method of Valuation”, and “Residual Method of Valuation”. You are required to examine these six methods of determining the value of your goods and find a suitable method for the valuation of your goods. However, there is an apex tribunal where you can lodge a complaint if in case you feel that you are wrongly pressurised to declare an enhanced value of your goods and therefore injustice is done to you.