Value for Duty of Promotional MaterialMemorandum D13-11-4

Ottawa, April 10, 2013 This document is also available inPDF (121 KB)[help with PDF files] The content of this memorandum has been reviewed and there are no policy or procedural changes. This memorandum outlines and explains the method by which the value for duty of promotional material may be determined.

1. If the goods are sold for export to Canada to a purchaser in Canada, the value for duty can be determined under the transaction value method (section 48 of theCustoms Act) provided that the price paid or payable for the goods can be determined and adjusted in accordance with subsection 48(5) of theCustoms Act, as necessary, and that the other requirements of that section are met. 2. If the promotional material is included in a shipment of other goods, for example, a shipment of electric ranges, the entire shipment could be treated as a package deal provided the transaction meets the definition of what constitutes a package deal. The total value of the shipment could then be apportioned over the promotional material and the ranges. In making the apportionment, the price or cost breakdowns must be reasonable and based on sufficient information. Guidelines illustrating how an apportionment of the total package price may be made are outlined inMemorandum D13-3-9,Package Deals. In apportioning the total package price, the value for duty of promotional material may be determined in accordance with the instructions provided inMemorandum D13-11-3,Value for Duty of Printed or Lithographed Matter, Financial and Others Instruments (Customs Act, Sections 48 to 53). 3. Where the promotional material is not part of a package deal and cannot be valued under section 48 of theCustoms Actbecause it has not been sold to a purchaser in Canada and/or the price paid or payable cannot be determined, the value for duty must be determined under one of the alternative methods of valuing imported goods (see Memorandum D13-11-3).

4. For more information, call contact theCBSABorder Information Service(BIS):Calls within Canada & the United States (toll free):1-800-461-9999Calls outside Canada & the United States (long distance charges apply):1-204-983-3550 or 1-506-636-5064 TTY:1-866-335-3237 Contact Us online(webform)Contact Usat theCBSAwebsite