Establishing the Value for Duty of Imported Rescue AnimalsMemorandum D13-11-7

Ottawa, April 10, 2014 This document is also available inPDF (25 KB)[help with PDF files] The editing revisions made in this memorandum do not affect or change any of the existing policies or procedures. This memorandum provides information on determining the value for duty of rescue animals that are imported into Canada.

Sections 44 to 55 of theCustoms Act.

1.  The value for duty (VFD) of all goods imported into Canada must be established in accordance with the provisions set out in sections 44 to 55 of theCustoms Act(the Act).

2.  The primary basis of establishing theVFDof imported goods is the transaction value method. Where goods are sold for export to Canada, to a purchaser in Canada, and the price paid or payable (PPP) of the goods can be determined, the transaction value method is to be used to determine theVFD. ThePPPis defined as all of the payments made or to be made by the purchaser to or for the benefit of the vendor. 3.  Where a sale price or an adoption fee has been charged by a vendor in connection with the importation of a rescue animal, this amount will be considered as thePPPand will be the basis for establishing theVFDof the rescue animal using the transaction value method. Any additional costs incurred by the purchaser in the country of export related to the importation of the animal (e.g., veterinary charges, foreign permits) and paid separately from thePPPmust also be included in theVFDof the imported animal. 4.  The cost of permits acquired in Canada or veterinary charges paid in Canada are typically incurred by the purchaser after importation and are not paid to or for the benefit of the vendor; as such, they do not form part of theVFD. 5. If no money is paid by the importer to acquire the rescue animal, theVFDmust be determined using an alternate valuation method. These methods must be applied in the order set out inthe Act. NoVFDshall be determined on the basis of arbitrary or fictitious amounts.

6.  When the transaction value method cannot be applied, theVFDmust be determined using the alternate valuation methods set out in sections 49 to 53 ofthe Act. 7.  In such cases, thePPPfor identical or similar goods may be used as the basis for establishing theVFD. For example, a person pays the equivalent of $200.00CADfor a rescue dog and imports it into Canada. The price paid to the vendor is declared as theVFD. The following month, the person imports another rescue dog of the same breed and of a similar age, from the same vendor, but does not pay for the second dog. The VFD of $200.00CADdeclared by the importer for the first dog can reasonably be used to determine theVFDof the second dog at the time of its importation. 8.  In another instance, a person imports rescue cats, for which no money is paid to the exporter, for the purpose of selling them in Canada. TheVFDcan be established by using the selling price in Canada and deducting from it the amount of profit earned and any related expenses incurred by the person in Canada (e.g., veterinary charges, permits obtained in Canada). 9. TheVFDestablished under these alternate valuation methods should be fair, reasonable, uniform, neutral, and reflect commercial reality. TheVFDis based on information provided by the importer or other information that is available in Canada.

10. An importer should collect and maintain all documentation relevant to the importation of rescue animals in support of the declaration of theVFD. The Canada Border Services Agency (CBSA) retains the right to challenge theVFDdeclared by the importer.

11. Please note that this policy directive is intentionally limited in its scope and is intended only to address the determination of theVFDof rescue animals. There are other requirements applicable to the importation of rescue animals that should be determined by consulting the appropriate government department or agency. 12. Any person wishing to obtain advice on how to establish theVFDof rescue animals prior to the importation may request a ruling from theCBSA. For more information, refer toMemorandum D11-11-1,National Customs Rulings (NCR). 13.  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