This month, the Canada Border Services Agency (CBSA) updated its
customs compliance verification priorities for 2015. Trade program
verifications of tariff classification, customs valuation and
origin are not limited to targets but rather are also initiated
randomly to assess risk and revenue, and to promote voluntary
compliance. In some cases, targets are experiencing a second round
of trade verification, and in other cases, the CBSA is either
continuing an existing round of verification or is planning a new
Importers of furniture for non-domestic purposes, batteries,
apparel samples, bags of polymers of ethylene, footwear valued at
$30 or more, hair extensions, machinery for public works, sacks and
bags, special purpose motor vehicles, polyurethanes in primary
forms, parts for power trains, generating sets, cereals, articles
of apparel and clothing accessories, bicycle parts, articles of
plastics, articles of iron or steel, vices and clamps, parts for
use with machinery of chapter 84 are experiencing first time
priority continuing or new verifications of their tariff
Importers of pickled vegetables, curling irons, spectacle
lenses, safety headgear, palm oil, seaweed, dextrins and other
modified starches, disposable and protective gloves, wheel rims and
spokes, coconut milk from Asia, and gazebos are experiencing a
second round of classification audits.
Customs valuation audits will be commenced or continue for
apparel, footwear, and preparations and pastrycooks'
Finally, origin verifications will continue or be initiated on
t-shirts and jewelrey.
Importers of the indicated goods would be prudent to prepare
themselves for CBSA trade verifications by conducting internal
reviews of their compliance practices, thereby getting out in front
of audit results that may include application of administrative
monetary penalties. Given the random application of CBSA
audits, the same would apply to all other importers. As business
priorities and judgments necessarily colour decisions as to whether
or not to become compliant retroactively or prospectively, if at
all, it is very important that internal reviews be conducted under
the auspices of solicitor-client privilege to retain
confidentiality. This is achieved by retaining actual legal
counsel; no other professional advisors can offer the same
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While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
On September 29, 2016, the Supreme Court of Canada issued its first tariff classification decision since Canada signed the International Convention on the Harmonized Commodity Description and Coding System in 1998.
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