CUSTOMS 101: NO PROOF, NO FREIGHT DEDUCTION?
CITT TIGHTENS EVIDENTIARY REQUIREMENTS FOR FREIGHT DEDUCTIONS
Transaction value has traditionally been used to value imported goods to Canada in approximately 95% of cases. An important deduction available to importers when using transaction value is for transportation costs incurred from the place of direct shipment to Canada.
In Korhani of Canada Inc. v. CBSA (AP-2022-030), the Canadian International Trade Tribunal (“CITT”) serves notice that it supports the CBSA’s position that transportation cost deductions must be supported by objective documentation evidencing the actual transportation costs, such as payment records or shipping invoices.