Nordic Laboratories v. Deputy M.N.R.
T-1050-93
Nadon J.
26/2/96
24 pp.
Appeal from Canadian International Trade Tribunal decision dismissing appeal from respondent's refusal to reappraise value for duty of imported product-Appellant company (Nordic) importing quantities of chemical product from Japanese supplier-Nordic becoming affiliate of American corporation (Marion)-In view of impending patent expiry and introduction of lower priced generic version of product, Nordic, Marion and supplier agreeing to new reduced pricing agreement applicable retroactively as of date of introduction of generic product into Canada-Supplier providing Nordic with credit note representing price reduction subsequent to introduction of generic product-Nordic, having initially paid duty on basis of former price structure, applying to Minister for reappraisal-Minister refusing to reappraise value for duty-Refusal confirmed by Tribunal on basis credit note constituting rebate or decrease in price effected after product imported into Canada and not relevant to calculation of transaction value of goods-Agreement clearly intending new price structure to apply immediately upon first sale of generic product in Canada (underlying condition), and not upon supplier's recognition or confirmation of such sale-Consequently, credit note constituting neither rebate nor decrease in price payable-Tribunal erring in law-Alternatively, as underlying condition fulfilled upon introduction of product into Canadian market, decrease not effected "after" product imported into Canada-Appeal allowed.