The Canada Border Services Agency (CBSA) has released an updated list of trade compliance verification priorities for July 2022. Verification priorities are established throughout the year and reflect the CBSA’s assessment of non-compliance risk with customs rules for categories of imported goods.
Updates to the CBSA's priorities since its last update in January 2022 include the removal of Stone Table and Counter Tops under Tariff Heading 94.03 as a priority, and the addition of Indicator Panels and Light-Emitting Diodes (LED) under Tariff Headings 85.31 and 84.41.
Audits cover (i) tariff classification, (ii) customs valuation and (iii) origin, and will commonly focus on one of these customs programs for a defined “verification period” (generally the last complete fiscal year). The importer faces the potential prospect of having to amend non-compliant past import entry declarations made in the period commencing up to four years prior to the date of amendment. All importers are at risk of random or compliance-based verifications. Note, however, that not all audits are based on verification priorities. Although the priorities identified in this list focus on risk in the three principal customs areas of tariff classification, valuation and country of origin, verifications of import compliance can also occur in connection with other customs programs such as trade incentives and compliance with areas of regulation administered by other government departments.
There are currently 21 active verification priorities: 19 for tariff classification and 2 for customs valuation. There are no origin verification priorities at this time.
The following summarizes the CBSA's current verification priorities:
Tariff Classification |
|
|
Air heaters and hot air distributors |
Heading 73.22 |
|
Bags |
Heading 42.02 |
|
Batteries |
Heading 85.06 |
|
Bicycle Parts |
Heading 87.14 |
|
Cell phone cases |
Headings 39.26, 42.02 and 85.17 |
|
Flashlights and miners’ safety lamps |
Heading 85.13 |
|
Footwear ($30 or more per pair) |
Heading 64.03 |
|
Furniture for non-domestic purposes |
Headings 94.01 and 94.03 |
|
Gloves |
Headings 39.26 and 42.03 |
|
Indicator Panels and Light-Emitting Diodes (LED) |
Headings 85.31 and 84.41 |
|
LED Lamps |
Heading 85.39 |
|
Other chemical products |
Heading 38.24 |
|
Other mountings and fittings, suitable for furniture |
Heading 83.02 |
|
Parts for Use with Machinery of Chapter 84 |
Heading 84.31 |
|
Parts of lamps |
Heading 94.05 |
|
Parts of machines and mechanical appliances |
Heading 84.79 |
|
Pasta |
Heading 19.02 |
|
Pickled vegetables |
Heading 20.01 |
|
Spent Fowl |
Headings 02.07, 16.01 and 16.02 |
Valuation |
|
|
Apparel |
Chapters 61 and 62 |
|
Footwear |
Chapter 64 |
Origin |
|
No active verification priorities at this time. |
The CBSA verification priorities list is available on the CBSA website.
Businesses that import goods listed as verification priority items should be prepared for the possibility of a CBSA trade compliance verification in the near future, the results of which could include the payment of additional duties, GST, interest and penalties. The risks of duties, penalties and punitive rates of interest associated with non-compliance serve as a reminder to importers to review their customs practices to make sure they are compliant, especially for goods covered by the CBSA's verification priorities.
The Bennett Jones International Trade and Investment Group is available to help client-importers assess their compliance/non-compliance risks and to assist in correcting errors resulting from past non-compliant practices, as well as improving these practices going forward.