Blog

Canada Border Services Agency Publishes Update of Trade Verification Priorities

August 30, 2024

Close

Written By Sabrina A. Bandali and Kathleen Wang

The Canada Border Services Agency (CBSA) has released an updated list of trade compliance verification priorities effective July 2024. The CBSA periodically sets verification priorities which reflect its evaluation of the risk of non-compliance with customs regulations concerning the importation of specific categories of goods or supply chains. New targets and priorities may be added throughout the year. The current verification priorities are set out in the table below.

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. If non-compliance is discovered, CBSA trade compliance verifications may result in payment of additional duties, GST, interest and penalties against businesses.

Trade verification audits usually focus on one of three "programs": (1) tariff classification, (2) customs valuation, and (3) origin. Audits may be desk-based or involve on-site visits, focusing on importations that occurred during a specified "verification period," which is typically the importer's last complete fiscal year. Following an audit by CBSA, an importer may be required to modify past import entry declarations that were non-compliant within a period of up to four years prior to the date of amendment. The following tables summarize the CBSA's current verification priorities. Additional details regarding the CBSA's current verification priorities are available on the CBSA website.

Tariff Classification

Gloves (Round 3)

Headings 39.26 and 42.03

Bags (Round 3)

Heading 42.02

Spent Fowl (Round 3)

Headings 02.07, 16.01 and 16.02

Freezers And Other Freezing Equipment

Heading 84.18

Washers And Dryers

Headings 84.50 and 84.51

LED Lamps (Round 2)

Heading 85.39

Furniture For Non-Domestic Purposes (Round 4)

Headings 94.01 and 94.03

Indicator Panels And Light-Emitting Diodes (LED)

Headings 85.31 and 85.41

Bicycle parts (Round 3)

Heading 87.14

Disposable And Protective Gloves (Round 5)

Subheadings 3926.20 and 4015.19

 

Valuation

Apparel (Round 4)

Chapters 61 and 62

 

Origin

Bedding and drapery (Round 3)

Headings 63.01, 63.02 and 63.03

 

In addition to these program-based priorities, the CBSA has identified other priorities related to trade incentives and compliance with areas of regulation administered by other government departments, specifically:

With this update, the following are no longer identified as priority targets (all in respect of tariff classification):

Notwithstanding the priorities that the CBSA articulates, all importers are at risk of random or compliance-based verifications. It is important to note that not all audits are based on verification priorities. Importers of goods not listed should still be mindful that the CBSA also carries out verifications based on complaints or through random selection. It is advised that importers remain vigilant in reviewing their customs compliance practices to ensure they adhere to current regulations and can withstand CBSA audits.

The Bennett Jones International Trade and Investment group is available to help client importers assess their compliance/non-compliance and to assist them in the steps that should be undertaken to correct errors resulting from past non-compliant practices and improve these practices going forward.

Authors

Related Links



View Full Mobile Experience