Canada: CBSA Releases Updated Trade Compliance Verification Priorities – July 2022

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:

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.