If the purchaser has supplied parts, materials or services for use in the production of the imported goods, and the value of those ‘assists’ is not included in the price paid for the goods, it must be added. Freight to deliver the materials to the factory must also be declared as an ‘assist’.
The country of origin of parts and materials can be Canada or any other country. For example, when an importer has fabrics shipped from one country to the country of manufacture, the value of the fabric and the freight cost must be added to the value of the finished goods when imported to Canada.
Field 25 (ii) of the Canada Customs Invoice (CCI) asks for information pertaining to goods and services, and must be completed when this is the case.
Failure to declare the value of assists is a common source of errors discovered in a customs compliance assessment review and is subject to penalties under the Administrative Monetary Penalty System (AMPS) as high as 20% of the undeclared portion of the value for duty.
A copy of the CCI is available at:
Omnitrans – Canadian Customs Brokerage Library – Forms
Additional information pertaining to valuation regulations is available from our technical consulting group.