The Canada Border Services Agency (CBSA) sets out, in a memorandum, how commissions and brokerage fees* are to be treated when determining the value for duty of imported goods.
Commissions and brokerage fees are amounts paid to intermediaries who help bring about a sale, on behalf of either the seller or the buyer.
Selling agents, buying agents, and brokers are the intermediaries who receive these payments, and it is primarily their position in the transaction that will determine whether their commissions or brokerage fees must be added to the value for duty. The rules are clearly laid out in the memorandum.
Issues involving commissions and brokerage fees are often uncovered by the CBSA during post-importation verifications, with costly consequences for non-compliant importers.
Link: Memorandum D13-4-12 — Commissions and Brokerage Fees
* In this article, “brokerage fees” refers to amounts paid to an intermediary for their role in concluding a sales contract, not to the fees charged by a customs broker for clearance services.