Canadian customs and global trade group Legal advice, risk management and planning can boost your bottom line and help you manage compliance

A law firm affiliated to Deloitte

Contacts

Vancouver

Daniel Kiselbach

Partner, Deloitte Tax Law

604-640-3821

dkiselbach@deloittetaxlaw.ca

Janice Roper

Partner, National Indirect

Tax Leader, Deloitte

604-640-3353

jroper@deloitte.ca

Lisa Zajko

Senior Manager, Deloitte

604-640-3057

lzajko@deloitte.ca

Alison Brady

Manager, Deloitte

604-640-3071

alibrady@deloitte.ca

Elizabeth Peon Valle

Manager, Deloitte

604-640-3354

epeonvalle@deloitte.ca

Calgary

R. Jason Riche

Partner, Deloitte

403-267-1702

rriche@deloiite.ca

Toronto

Heather Missouri

Senior Manager, Deloitte

416-601-4692

hmissouri@deloitte.ca

Jody McLean

Manager, Deloitte

416-775-7282

jmclean@deloitte.ca

Montreal

Robert Demers

Partner, Deloitte

514-393-5156

rdemers@deloitte.ca

About Deloitte Tax Law LLPDeloitte Tax Law LLP provides advice to domestic and international clients on all aspects of Canadian tax law – including income tax and commodity taxes. The services of Deloitte Tax Law LLP include developing tax planning strategies and tax-efficient corporate structures, whether for new or existing businesses, and advising on the income and commodity tax implications of a wide variety of corporate/commercial transactions. Deloitte Tax Law LLP advise on wealth, estate and business planning for high net worth individuals and have extensive knowledge and expertise in the area of taxation of private corporations and their shareholders. Deloitte Tax Law LLP offers tax litigation and CRA representation services. Its tax litigators have broad experience in representing both corporate and individual clients in dealing with Canadian federal and provincial taxation authorities and have appeared at all levels of court.

About DeloitteDeloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

© Deloitte LLP and affiliated entities.

Business challengesBusinesses engaged in the supply of goods and services across

international borders face various hurdles. The right advice can be

essential in this highly regulated area. Success of a trade-related business

can depend on the management of key concerns such as compliance

risk and whether or not all appropriate duty and tax planning have been

implemented. However, when facing these concerns, managers face

several challenges. A few of examples are noted below.

• A business may need internal systems and controls to support the

making of customs declarations, the application for permits and the

preparation of other reports to government entities. Inadequate

internal systems and controls may enhance the risk of non-compliance.

Non-compliance can lead to imposition of unexpected duties, taxes,

interest and penalties.

• Customs and international trade are subject to complex and interrelated

laws. Written and unwritten policies of various government agencies

may apply from time to time. In addition, legislative bodies, government

agencies and courts may effect changes to the regulatory terrain

without notice. It may be difficult to manage the complexity, lack of

transparency and rapid change of laws and policies, particularly where a

business imports or exports into multiple countries or trade territories.

• The storage, organization and management of records and information

may be required by law and may be necessary in order to provide

objective evidence in support of such matters as customs declarations,

tax returns and permit applications. Data may come from various

sources, making data capture, storage and access difficult undertakings.

• Often individuals operating outside of a customs and trade department

make decisions with respect to import and export transactions.

For example, consider the decision of a tax director who sets the

intercompany sales price of goods purchased from a related party.

The decision might have been made for income tax (transfer pricing)

purposes. However, as a result of this decision the importer of those

goods may have a duty to make a correction to the declared value of

those goods for customs purposes. Failure to do so could lead to the

assessment of duties, penalties and interest.

How we can assist youOur group can provide legal and business solutions to customs and

international trade concerns. We help companies improve their bottom

line profitability by better managing compliance as well as duties, taxes,

levies, charges and assessments arising from global trade.

Our Canadian group is connected with our multidisciplinary global

network of more than 300 customs and global trade professionals in over

50 countries. These professionals include lawyers, accountants, customs

brokers, economists, auditors, former government employees and

industry specialists. With this range experience we are well positioned to

understand and deal with the requirements of customs and global trade

businesses.

We can provide practical business solutions and support you wherever

you do business. Our worldwide network of member firms conform

to uniform high-level standards and we have extensive experience in

completing customs compliance and consultancy projects for a vast range

of organizations. This experience allows us to deliver consistent and

seamless service wherever you need it.

Our group can provide full integration of customs and trade management

services. The management of customs and global trade issues sometimes

requires expertise in areas such as international tax, transfer pricing,

supply chain management, business and systems consulting, internal

audit and corporate risk management. Our professionals have experience

in these areas as well or can access this expertise through the Deloitte

network.

Client representation For ease of reference, we have set out a brief and not exhaustive list

of representative services to illustrate our wide range and depth of

experience. In providing legal advice and representation, communications

to and from legal counsel at Deloitte Tax Law LLP may be privileged and

confidential with the appropriate steps being taken. Deloitte Tax Law

LLP has significant experience in trial and appeals in customs and global

trade matters, taxation and other matters. In particular, our legal counsel

have provided legal representation to clients before tribunals (such as the

Canada Border Services Agency, the Canada Revenue Agency, and the

Department of Finance), and courts (such as the Canadian International

Trade Tribunal, the Tax Court of Canada, the Federal Court, Superior

Courts and the Supreme Court of Canada) and dispute resolution

institutions or bodies (such as the London Court of International

Arbitration) with respect to:

• Disputes concerning customs and excise, Goods and Services Tax,

Harmonized Sales Tax, Provincial Sales Taxes, export charges, fuel

taxes, environmental levies, digital media credits, export charges, and

property taxes

• Judicial review applications concerning government decisions, such

as the request to produce documents and information

• Verifications, audit defence, corrections, adjustments and voluntary

disclosures

• The prosecution and the defence of civil claims

• Civil penalties including seizures and forfeitures

• Criminal investigations, search warrants, production orders,

informations to obtain, alternative measures/diversions, plea

negotiations and the defence of criminal charges (e.g., undervaluation,

non-reporting, false statements, and double invoicing)

• Alternative dispute resolution, including negotiations, mediations and

London Court of International Arbitration proceedings

• Remission of duties, taxes, penalties and interests

• Foreign Extraterritorial Measures Act extraterritorial blocking measures

(US Helms Burton Act Restrictions)

• Trade remedy disputes (including anti dumping and countervailing

duties), and

• Environmental permits pursuant to the Export and Import of Hazardous

Waste and Hazardous Recyclable Material Regulations.

Legal opinions Deloitte Tax Law LLP lawyers have provided legal opinions with respect to:

• Import duty/tax minimization and customs planning

• Duty deferral programs, drawbacks, and refunds

• Off shore supplies, in bond shipments and the use of foreign trade

zones

• Non-resident importers

• Valuation, tariff classification, and origin declarations

• Ruling requests

• Self-audits and reviews of import/export compliance

• Reviews of business processes (systems and controls)

• Preferential and non-preferential tariff treatments

• Free trade agreements

• World Trade Organization agreements

• Foreign investment agreements and claims

• Requirements of agencies such as Agriculture Canada, the Canadian

Food Inspection Agency, Environment Canada, Health Canada,

Industry Canada, Transport Canada, and Public works and

Government Services Canada

• Environmental controls, economic sanctions and permits

• Compliance with anti-money laundering and anti-foreign corruption

legislation, and

• Duty recovery strategies.

Legal documents Deloitte Tax Law LLP professionals have assisted in drafting various legal

documents including:

• Sale and purchase contracts

• Distribution agreements

• Royalty agreements

• Bills of lading

• Customs power of attorney and agency agreements

• Inter-company transfer pricing agreements

• Indemnity agreements, and

• Corporate documents such as articles of incorporation, resolutions, etc.

Corporate and advisory servicesWe have extensive advisory services experience in the following areas:

(a) Global supply chain assessments for compliance and the

optimizations of customs, trade, tax and security.

(b) Assistance and advice for the selection and implementation of

automated solutions and analytics for import/export management.

(c) Export control compliance program review and development

(d) Export control compliance audit

(e) Export control classification

(f) Export control compliance training

(g) Liaison and engagement with government authorities on export

control related matters

(h) Ad-hoc export control and sanctions advisory service

(i) M&A due diligence

(j) Economic sanctions and trade embargoes

(k) Export controls and the application for permits relating to goods and

technology

(l) Defence production controls

(m) Foreign anti-corruption laws and policies

(n) International trade agreements (including investment protection and

government procurement provisions)