WORLD TRADE G/VAL/N/1/CAN/2
14November 1997
ORGANIZATION(97-5020)
Original: English Committee onCustoms Valuation
NOTIFICATION UNDER ARTICLE 22.2OFTHE AGREEMENT
ONIMPLEMENTATION OFARTICLE VIIOFTHE GENERAL
AGREEMENT ONTARIFFS AND TRADE 1994
CANADA
Thefollowing communication, dated 11November 1997, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
Pursuant toArticle 22.2oftheAgreement onImplementation ofArticle VIIoftheGATT 1994,
theGovernment ofCanada hereby notifies theCommittee onCustoms Valuation ofrecent amendments
toCanadian legislation andregulations relating tocustoms valuation. These amendments wereeffective
September 17,1997.
Specifically, twoprovisions oftheCanadian Customs Acthave been amended. Thefirst
introduces theterm "purchaser inCanada" which isdefined byregulation. Thesecond amends
subsection 48(1) oftheCustoms Acttoexplicitly provide thatthevalue fordutyofgoods isthe
transaction value ifthegoods aresoldforexport toCanada toapurchaser inCanada.
Together these twoprovisions serve onlytoconfirm thelongstanding interpretation ofthe
valuation provisions andaretechnical amendments toCanadian legislation.
Thecontent ofthismodification isdescribed intheattached document.G/VAL/N/1/CAN/2
Page2
Amendments totheCustoms Act
effective September 17,1997
Thetwoprovisions oftheCustoms Actrelating tovalue fordutyofgoods which havebeen
amended areoutlined asfollows:
(a) subsection 45(1) isamended byadding thefollowing definition:
"purchaser inCanada hasthemeaning assigned bytheregulations";
(b) subsection 48(1) before paragraph (a)isreplaced bythefollowing:
"48(1) Subject tosubsections (6)and(7),thevalue fordutyofgoods isthetransaction
value ofthegoods ifthegoods aresoldforexport toCanada toapurchaser inCanada
and...."(new language isunderlined)
Regulations Amending theValuation forDuty Regulations
AMENDMENTS
1. Theheading before Section 2oftheFrench version oftheValuation forDuty Regulations1
isreplaced bythefollowing:
DEFINITIONS
2. Section 2oftheRegulations isreplaced bythefollowing:
2. Thedefinitions inthissection apply inthese Regulations.
"Act" means theCustoms Act.(Loi)
"permanent establishment", inrespect ofaperson, means afixedplaceofbusiness oftheperson
andincludes aplace ofmanagement, abranch, anoffice, afactory oraworkshop through which the
person carries onbusiness. (établissement stable )
"resident" means:
(a) anindividual whoordinarily resides inCanada;
(b) acorporation thatcarries onbusiness inCanada andofwhich themanagement and
control isinCanada; and
(c) apartnership orother unincorporated organization thatcarries onbusiness inCanada,
ifthemember thathasthemanagement andcontrol ofthepartnership ororganization,
oramajority ofsuchmembers, resides inCanada. (résident )
1SOR/86-792.G/VAL/N/1/CAN/2
Page3
MEANING OF"PURCHASER INCANADA"
2.1 Forthepurposes ofsubsection 45(1) oftheAct,"purchaser inCanada" means:
(a) aresident;
(b) aperson whoisnotaresident butwhohasapermanent establishment inCanada; or
(c) aperson whoneither isaresident norhasapermanent establishment inCanada, and
whoimports thegoods, forwhich thevalue fordutyisbeing determined,
(i) forconsumption, useorenjoyment bytheperson inCanada, butnotforsale,
or
(ii) forsalebytheperson inCanada, if,before thepurchase ofthegoods, the
person hasnotentered intoanagreement tosellthegoods toaresident.
COMING INTO FORCE
3. These Regulations comes intoforce on17September 1997.