Canada - English

Canadian Exporters - U.S. Customs Changes Present Refund Opportunity - by John Pajek and Barbara Stegemann 

Canadian Tax Adviser


June 12, 2012


John Pajek and Barbara Stegemann
GTA, Trade & Customs


If you have a client that is the importer of record into the United States that sells to a related party, they may be entitled to a duty refund due to new rules on post-import adjustments that will come into effect July 30, 2012. This new policy does not affect the Canada Border Services Agency's treatment of importers into Canada.

New policy
U.S. Customs and Border Protection (CBP) has announced that, effective July 30, 2012 new rules apply to importers into the United States on the treatment of the import value between related parties and post-importation adjustments. Under the new policy:


  • Importers into the United States can use the transaction value method of valuation under certain conditions (this is the simplest method to apply)
  • Importers must make post-importation adjustments, either up or down, to the declared value
  • A transfer pricing study is important to establish arm's-length pricing.


Affected exporters may be required to enroll in the CBP’s reconciliation program to handle their post-entry adjustments.


For more information, contact your KPMG adviser.


Canadian companies may be interested in these recent publications: