On March 26, 2020, the Canada Border Services Agency (“CBSA”) notified certain importers under verification that the CBSA was temporarily suspending trade compliance activities due to COVID-19 – see The CBSA Temporarily Suspends Trade Compliance Activities due to COVID-19.
On May 19, 2020, importers received an update from the CBSA informing external stakeholders that
In normal times, the Canada Border Services Agency (“CBSA”) conducts verifications (audits) of importers to ensure that they are in compliance with Canadian customs laws (e.g., origin, tariff classification, valuation, etc.). On March 26, 2020, we received the following notification from a CBSA Trade Compliance Officer with whom we are engaged on a file:
“Due
In early January 2018, the Canada Border Services Agency (“CBSA”) issued its January 2018 Trade Compliance Verification Priorities. Twice a year, the CBSA posts trade compliance verification priorities for tariff classification, origin and valuation. In the January 2018 Trade Compliance Verification priorities, the CBSA has hidden on page 44 a new target – “Import
Canadian importers (especially non-resident importers and those related to a foreign entity) may, someday, be contacted by the Canada Border Services Agency (“CBSA”) to conduct a customs valuation verification. Current CBSA valuation verification priorities include apparel (Chapters 61 and 62) and food preparations and pastrycook’s products (Chapter 19). In January 2017, the CBSA announced that
On August 5, 2016, the Canada Border Services Agency (“CBSA”) posted on the CBSA web-site a News Release entitled “Dartmouth store owner charged for falsifying documents and undervaluing shipments”. This News Release should cause Canadian business owners who import goods and/or general counsel of companies that import goods to ask important questions:
On 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:
The listed valuation trade compliance priorities are:
The listed origin trade compliance priorities are:
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. Continue Reading Canadian Customs Audit Targets – CBSA Releases H2 2016 Verification Priorities