1. -GST paid on importation should be recoverable and should not become a sunk cost.
2. -In the case of exports, GST should not be applicable, but an exporter should nevertheless pay close attention to whether or not its export meets the necessary requirements to be â€œzero rated.â€
3. -Identifying the best party to act as the importer of record is crucial.
4. -Non-resident companies face particular challenges when planning to import goods into Canada in their own name
5. -Many trade chain structures involving non-resident companies will trigger an application of the Canadian drop shipment rules.
6. -Attention should be paid to standard terms of trade (e.g., INCOTERMS), as they can have significant implications on the payment of GST and duties.
7. -Under a penalty regime known as the Administrative Monetary Penalty System (AMPS), the Canada Border Services Agency (CBSA) will issue monetary penalties for instances of non compliance with customs obligations.
8. -Determining the customs value of imported goods, or their value for duty (VFD), requires the application of a prescribed valuation method.
9. -Importers involved in related-party transactions need to understand that there are additional complications to arrive at the VFD when the seller and the buyer are related.
10. -Although Canada is known as a favourable jurisdiction when it comes to using transfer prices for purposes of determining the VFD on related-party transactions, income tax rules that govern transfer pricing and the customs valuation rules are not the same.
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