CBSA post entry corrections for Canadian importers

Canadian importers can potentially reduce duties paid by submitting post-entry corrections to the Canada Border Services Agency (CBSA), if the importer believes that the original declaration was incorrect. When an import declaration accidentally includes an omission or an error, a CBSA post entry correction can fix the error, preventing it from becoming a non-compliance issue at a later date.

The ability to make corrections to import declarations allows importers a fair chance to benefit from lower duties when free trade agreements apply or allows importers the ability to align with specific CBSA regulations. A post-entry correction can start up to four years after the duties were initially paid, but it's best to avoid procrastination and complete the process sooner rather than later. 

What is a CBSA post entry correction?

A post entry correction is a change to the information that an importer provides to the CBSA when submitting a declaration for their imports. This gives importers the chance to update the data they give to the CBSA to ensure accuracy in the event of an error or omission. Similarly to a CBSA post entry appeal, a post entry correction with the CBSA typically involves the following issues:

Origin of goods

The origins of imported goods determine how your imports will be treated by the CBSA. Products from certain countries or trading blocs may qualify for preferential tariff treatment under a trade agreement.

Product valuation

It’s essential to provide accurate data about product valuation to the CBSA. If you notice a discrepancy for the price paid or payable, you’ll need to provide a correction to update the CBSA on the correct total.

Quantity of goods

If you discover that the quantity of goods listed on your import declaration isn’t accurate, you’ll need to adjust the quantity of goods imported in a post entry correction.

Tariff classification

Tariff classification identifies goods imported into Canada. Also known as an HS code, a tariff classification number is a 10-digit code that determines the taxes and duties that apply to your import. HS codes can be a bit complex for some imports, so a post entry correction gives you a way to update the CBSA with an accurate HS code.

Why do importers need to make a post entry correction?

Canadian importers must provide a correction for errors, changes, or omissions in an import declaration. It’s best to provide a post entry correction promptly to avoid regulatory consequences or fines. The CBSA requires importers to report errors in declarations within 90 days of discovery, and within four years of the original date of accounting.

Some of the most common reasons why importers have to provide a post entry correction include:

Audits and CBSA verifications

Importers conducting an internal audit, or undergoing and external audit or customs verification, may discover errors or discrepancies in their reporting. These must be corrected within the 90-day timeframe.

Data entry errors or omissions

Sometimes, the need to submit a post entry correction to the CBSA exists because of mistakes in data entry, like a typo that reports an incorrect quantity or a misclassifies an import.

Supplier and sales adjustments

Suppliers may adjust the details of transactions, including an increase to the price paid or payable, adjusting commissions if applicable, or year-end true-ups in the case of transfer pricing adjustments. These types of changes require corrections to be made to the original declaration.

Importers can benefit from post entry corrections

Attention to detail and a clear understanding of regulations are crucial aspects of successful CBSA post entry corrections. This procedure provides an opportunity to reduce tariffs for some importers, while others will benefit from a correction process that fixes accidental non-compliance.

An experienced customs broker knows how to navigate these regulatory environments and leverage working relationships with CBSA agents. This helps to ensure an efficient and effective process for correcting import declarations and other requirements for trade compliance. Connect with a Cole customs leader now to navigate Canada’s customs regulations with greater ease and confidence.