ARGO Toronto Customs Brokers: Imported equipment that is found to include a defective part or article that is removed and returned to the foreign supplier for credit is entitled to a partial refund of the duty assessed on the equipment at the time it was imported. The basis for calculating the amount of duties to be refunded is the value of the defective part or article at the trade level in which it was incorporated into the finished good. The value is to be established in accordance with the valuation methodologies. Where the value of the equipment or article that is removed from the good cannot be easily determined, at the trade level in which it was incorporated into the finished good, in accordance with section 79 of the Customs Act, the CBSA will accept a value based on 50% of the current value of a replacement part or article.