July 2016

travelling-with-suitcase-1524960-1279x950The Civic Holiday long week-end is upon us.  Canadians travel outside Canada to visit friends and family and to shop.  The Canada Border Services Agency (“CBSA”) is on the lookout for contraventions of the Customs Act and other border laws.

Here is our survival guide to make sure the CBSA is happy with your declaration

A graphic image depicting the measurement of risk in business.

Many clients call me to inform me of a “disagreement” with a Canada Border Services Agency (“CBSA”) officer relating to goods from Canada that they took with them on a trip.  Often the problem relates to an expensive ladies purse or a piece of jewelry (sometimes a men’s watch).

On November 13, 2015, the CBSA

Many-QuestionsThis top 10 mistakes blog article has been created with the assistance of Vincent Gaudreau, a former Canada Border Services Agency (CBSA) Officer in the Antidumping and Countervailing Directorate.

After the CBSA initiates an antidumping investigation, the CBSA issues an exporter request for information (RFI) that must be completed by the exporter of the goods

Many QuestionsCanada imposes unilateral economic sanctions against both Russia and Iran pursuant to the Special Economic Measures (Russia) Regulations and Special Economic Measures (Iran) Regulations, respectively.  It was not long ago that Canadian export controls lawyers were saying that Canada imposed its most strict sanctions against Iran.  However, on February 5, 2016, Canada lifted some


chessCanadian businesses with export activities to Turkey should watch carefully to see if Canada’s export controls rules will change as a result of Canada’s concerns about the thousands of detentions and three month state of emergency in Turkey.  It is time to exercise due diligence and caution.  It is time to watch alertly for

Canada-US GlobeNEXUS Membership is a Canada-U.S joint regulatory discretionary trusted traveler program.  GOES or Global Entry is a U.S. regulatory discretionary trusted traveler program. NEXUS and Global Entry are different expedited entry programs.

HOWEVER, and this is very important, a person who uses a NEXUS lane at a Canadian land border crossing must have a NEXUS


3d human with a red question mark

On February 5, 2016, Foreign Affairs Minister Dion announced that “Canada amends sanctions against Iran” and regulatory changes were implemented/promulgated. On February 5, 2016, the Export Controls Division of Global Affairs Canada issued Notice to Exporters No. 196 “Exports of items listed on the Export Control list to Iran”. On February

Good BadOn July 19, 2016, the Canada Border Services Agency (“CBSA”) commenced a public consultation process with respect to the eligibility criteria to be applied when assessing “good character” of Trusted Traveler Programs applicants. (See Announcement) As an extension, the CBSA is also looking at when NEXUS membership may be cancelled or revoked as a

Globe with financial papersOn July 7, 2016, the Canada Border Services Agency (“CBSA”) released “Tariff Compliance Verifications – July 2016”.  What are “Tariff Compliance Verifications”? Tariff compliance verifications are CBSA customs audits during which the CBSA ensures that importers are using the proper tariff classification (HS Code) numbers when completing import documentation.

The Tariff Compliance Verifications – July 2016 identifies tariff classification, origin and valuation targets of the CBSA for the random and mandatory verifications that will take place in the second half of 2016.  There will still be other verifications of importers of other “not listed” imported goods.  However, the document released by the CBSA is a “heads up” to importers and a “helpful” nudge to review one’s import paperwork carefully.

In this document, the CBSA provides useful information that helps importers assess their risk of a reassessment.  The CBSA indicates which verification targets were previously listed by them and the compliance rates discovered by the CBSA.  The CBSA also states the amount of money the CBSA has collected in respect to the targeted items. For example, the CBSA informs that $1,142,773 has been collected as a result of prior verifications relating to preparations and pastrycooks’ products – who would have thought that would be a big problem area?  With respect to disposable and protective gloves, the non-compliance rate was at 92%.  Importers who use the HS code for disposable gloves and protective gear should be asking themselves if they have made the same mistakes as others.

Any importer who imports a targeted item could be the subject of a verification audit by the CBSA.  If the CBSA finds non-compliance, the importer will be assessed duties, taxes and possibly administrative monetary penalties.  For this reason, if you import one of the listed items, review your paperwork and make corrections before the CBSA calls.

The listed tariff classification trade compliance priorities in alphabetical order are:

  • air brakes and parts thereof (HS Code Subheading 8607.21) (new)
  • articles of apparel and clothing (HS Code Heading 39.26)
  • articles or iron and steel (HS Code Heading 73.26)
  • articles of plastics (HS Subheading 3926.90)
  • batteries (HS Codes 98506.10.10 and 8506.50.10)
  • bicycle parts (HS Code Heading 87.14)
  • cell phone cases (HS Code Headings 39.26, 42.02, and 85.17) (new)
  • cereals (HS Code Heading 10.08)
  • chemical products (HS Code Heading 38.08)
  • coconut milk from Asian countries (HS Codes 1106.30.00, 2008.19.90, and 2106.90.10.90)
  • dexatrins and other modified starches (HS Code 3505.10.900)
  • disposable and protective gloves (HS Codes 3926.20.10 and 4015.19.10)
  • curling irons (HS Code 8516.32.10)
  • footwear (HS Codes 6403.59.20 and 6403.99.30)
  • furniture for non-domestic purposes (H.S. Codes Headings 94.01 and 94.03)
  • gazebos (HS Code 9406.00.90.20)
  • geophysical and oceanographic instruments (HS Code Heading 90.15)
  • hair extensions (HS Code 6703.00.00)
  • hair dryers and electric smoldering irons (HS Code Heading 85.16)
  • handkerchiefs, towels and related paper products (HS Code Heading 48.18) (new)
  • interchangeable tools (HS Code Heading 82.07) (new)
  • live plants (HS Code Heading 06.02) (new)
  • machinery for public works (HS Codes 8479.10.00)
  • mountings, fittings and similar articles (HS Code Heading 83.02) (new)
  • parts for power trains (HS Code Heading 87.08)
  • parts for use with machinery of Chapter 84 (HS Code Heading 84.31)
  • parts of lamps (HS Code Heading 94.05)
  • pasta (HS Code Heading 19.02)
  • polyurethanes in primary forms (HS Code 3909.50.00)
  • prepared meat and swine (HS Code Heading 16.02) (new)
  • special purpose motor vehicles (HS Code 8705.90.90.90)
  • seaweed (HS Codes 1212.21.00 and 1212.29.00)
  • spectacle lenses (HS Codes 9001.40.10 ad 9001.50.10)
  • stone table and counter tops (HS Code 9403.90.00) (new)
  • tubes, pipes and hoses (HS Code Heading 39.17)
  • vices and clamps (HS Code Heading 82.05)

The listed valuation trade compliance priorities are:

  • apparel (HS Chapters 61 and 62)
  • preparations and pastrycooks’ products (HS Chapter 19)

The listed origin trade compliance priorities are:

  • t-shirts (HS Code Heading 61.09)
  • jewelry (HS Codes 7113.11.90, 7113.19.90 and 7113.20.90)

Consider whether you are at risk of a verification letter from the CBSA and whether you may benefit from making a voluntary correction or voluntary disclosure.

For more information, please contact Cyndee Todgham Cherniak at 416-307-4168 or at cyndee@lexsage.com. Alternatively, visit www.lexsage.com

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