CBSA Verification Priorities: July 2022

Are your goods on it?

The Canada Border Services Agency (CBSA) targets specific industries and products for extra attention at the border to ensure importers are compliant with requirements for tariff classification, product valuation and country of origin.

CBSA’s list of targeted verification priorities is updated on an ongoing basis. The current list, published early July 2022, is now available on the CBSA website.

This current list contains 21 types of goods. Some items are being targeted to ensure correct HS/tariff classification, while others are targeted to ensure correct valuation and origin.

Two new items on this list are Indicator Panels and Light-Emitting Diodes. The risk identified is that imported goods could be incorrectly classified as indicator panels or light-emitting diodes under Headings 85.31 and 85.40, instead of being properly classified under Headings 85.28 or 94.05 and be subject to duty rates up to 7%.

Two items on this list have completed their first round of verification: Parts of Machines and Mechanical Appliances, as well as Other Chemical Products.

• Parts of Machines and Mechanical Appliances: The risk identified was that imported goods could be incorrectly classified as parts of machines and mechanical appliances within Heading 84.79, instead of being correctly classified elsewhere, and subject to duty rates up to 6.5%. The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under Chapters 39, 73, 84, 85 and 90 of the Customs Tariff.
• Other Chemical Products: The risk identified was that imported goods could be incorrectly classified as other chemical products within Heading 38.24, instead of being properly classified elsewhere within various chapters, and be subject to duty rates up to 11%. The results of the first round show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 38 of the Customs Tariff.

Please review the 2022 Verification Priorities list carefully to see if your goods are on it.

If you’re importing any of the targeted items, pay extra attention to your import practices and customs paperwork. Any errors or inconsistencies can result in extra duty and penalties, disruptions to your supply chain, border delays and loss of good importer status with CBSA.

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