CBSA compliance verification trends - 2024 year in review
The Canada Border Services Agency (CBSA) prioritizes certain industries and products for audits to ensure ongoing compliance verification. Cole’s Audit Response Unit keeps track of CBSA trade compliance verification trends that we see emerging throughout the year. We share our industry knowledge regularly to keep you up to date and prepared for important trends in customs compliance.
Stay prepared for compliance
Preparation is key when you’re importing goods that have been targeted for compliance verification by the CBSA.
Products on the CBSA’s priority list are much more likely to be audited compared to goods that aren't prioritized. Knowing which goods are being targeted will help you stay prepared to ensure compliance, giving you the chance to account for added costs, adjusted sales prices, and potential delays at the border.
If you aren’t prepared and the CBSA determines that you're not complying with regulations, you may be facing duties, taxes, and additional penalties.
Compliance verification trends update – 2024 year in review
Over the past year, we have noticed that the following products have been trending for increased CBSA compliance verification:
Freezer and other refrigerating or freezing equipment - Certain display counter types, or reach-in frozen food and ice cream merchandisers, would attract a duty rate of 6%, whereas other types of freezers may be duty free.
T-shirts and other similar items - Valuation verifications are being completed to ensure that certain assists, such as designs and textiles, are included in the valuation at the time of import.
Safety helmets - The CBSA is ensuring that goods are classified correctly, as certain safety helmets do not meet the definition of athletic protective headgear. This would be a difference in duty rates from 0% up to 8.5%.
Flooring made from combined materials - The CBSA is reviewing the makeup of flooring tiles, as certain flooring with a PVC outer layer may fall within the scope of floor coverings of plastics. This could result in a change of duty rates from 0% to 6.5%.
GST exemption codes - These are being looked at closely to ensure proper end use that qualifies under the appropriate GST exemption codes.
Spice mixtures - Spice mixtures that contain non-spice ingredients do not belong in chapter 9 of the Harmonized System. These types of spice mixtures could fall into heading 21.03 as mixed seasonings, with a possible duty rate of 9.5%.
Granite products - If granite stone is polished, the CBSA feels that this product is better classified as finished stone, which has a duty rate of 6.5%. Granite stones that haven’t been polished aren’t classified as finished stone, carrying a lower duty rate of 3.5%.
Dehumidifiers – Dehumidifiers with a weight of less than 20 kg can be classified under heading 85.09. Dehumidifiers weighing more than 20 kg could fall under heading 8479.89.20.22 with a duty rate of 7.5%.
How to respond to compliance trends
When the goods you're importing have been targeted as a priority for compliance verification, our audit specialists recommend that you conduct an internal review to ensure your imports have accurate and complete documentation.
It's a good idea to gather paperwork and information about your imports, such as:
- Previous verification results
- Copies of past rulings provided by Customs
- Copies of previous communications or opinions provided by Customs
- Detailed technical information for your products
- Previous product classifications, origins of goods, and other related documentation
If you notice any errors or omissions in your previous paperwork and documentation, it's a good idea to voluntarily disclose mistakes instead of waiting for the CBSA to notice.
Work with an experienced audit professional
Cole's dedicated Audit Response Unit includes experienced customs professionals who stay current on verification trends. They understand the potential risks and costs of facing an audit, working with you to respond effectively and prevent issues in the future. Contact our Audit Response Unit now.
