R&D payments were, in entirety, in respect of goods in issue

Federal appeal | Customs and Excise

DUTY

R&D payments were, in entirety, in respect of goods in issue

Appellant was in business of selling footwear. Respondent made seven decisions pursuant to s. 60(4) of Customs Act (Can.), concerning value for duty of footwear imported by appellant. Respondent determined that payments made by appellant to vendor, its parent company, for research, development and design expenses (R&D payments) must be included, in their entirety, in price paid or payable for goods in issue and their value for duty for purposes of Act. Appellant appealed. Tribunal dismissed appeal. Tribunal concluded that R&D payments, in entirety, were in respect of goods in issue and must be included in their value for duty purposes. Appellant appealed tribunal’s decision. Appeal dismissed. Standard of review was reasonableness. Appellant was asking Court of Appeal to re-weigh evidence before tribunal, which was beyond scope of court’s role. Tribunal’s decision was reasonable. It was reasonable for tribunal to conclude that R&D payments were, in entirety, in respect of goods in issue. Tribunal’s description of legal test was correct. In determining whether payment was in respect of certain goods, main question was whether there was sufficient link between payment and goods. Tribunal reasonably concluded that link between R&D payments and footwear imported by appellant was sufficient. Tribunal reasonably concluded that research, design and development process was interrelated, whole of which was require to produce goods. Appellant’s arguments as to how R&D costs were not in respect of goods were not accepted. Tribunal did not err in its use of authorities. Decision was transparent, intelligible and justifiable. Conclusion fell within range of possible, acceptable outcomes that were defensible in respect of facts and law.
Skechers USA Canada Inc. v. Canada (President of Border Services Agency) (Mar. 2, 2015, F.C.A., Eleanor R. Dawson J.A., Johanne Trudel J.A., and David G. Near J.A., File No. A-121-14) 250 A.C.W.S. (3d) 428.

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Modern family arrangements, multi-jurisdictional presence raising estates complexity, say lawyers

Ontario Superior Court of Justice dismisses joint tenant's application to order property's sale

Ontario Court of Appeal allows statement of claim amendment in Bayer personal injury case

Ontario’s response to COVID’s long-term-care crisis lacks an ‘easy fix,’ says elder law lawyer

With more lawyers doing pro bono, profession can meet access-to-justice gap, says Lynn Burns

Ontario Superior Court orders costs for unreasonable conduct and bad faith in child support case

Most Read Articles

Occupier negligent in failing to timely salt icy roadway: Ont. CA

Ontario Superior Court orders costs for unreasonable conduct and bad faith in child support case

Ontario Bar Association launches peer support network for lawyers living with disabilities

Ontario’s response to COVID’s long-term-care crisis lacks an ‘easy fix,’ says elder law lawyer