Written By Darrel Pearson and Kathleen Wang
The Canada Border Services Agency (CBSA) released a list of verification priorities for January 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.
There have been updates to the CBSA's priorities since we last reported in February 2020.
Audits cover tariff classification, customs valuation and 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 requirement to amend non-compliant past import entry declarations made commencing up to four years prior to the date of amendment. All importers are at risk of random or complaint-based verifications; not all audits are based on verification priorities.
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 |
| 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 |
| Stone table and counter tops | Heading 94.03 |
| Valuation | |
| Apparel | Chapters 61 and 62 |
| Footwear | Chapter 64 |
| Origin | |
| No active verification priorities at this time. |
The CBSA provides the identified risks of non-compliance for each verification priority on its website.
Businesses that import goods listed as verification priority item should prepare for the possibility of a CBSA trade compliance verification in the near future, the results of which may include 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.
Our International Trade and Investment group is available to help client importers assess their compliance/non-compliance and to assist them in steps that should be undertaken to correct errors resulting from past non-compliant practices and improve these practices going forward.
Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.
For permission to republish this or any other publication, contact Amrita Kochhar at kochhara@bennettjones.com.
Bennett Jones