Compliance Verification Trends Issue #2 – April 2018
CBSA identifies specific industries and products as priorities for audits, and updates their verification priority list on an ongoing basis. The up-to-date list of priorities is available on the CBSA website.
Forewarned is forearmed
If you import a targeted item, you face a high likelihood of being audited by the CBSA. This in itself can certainly be manageable, provided you’re adequately prepared. However, if you aren’t adequately prepared and the CBSA finds non-compliance, you can be assessed duties, taxes and additional penalties that can harm your business.
Being prepared – both by knowing which goods are being targeted and by ensuring customs compliance when importing those items – gives you the chance to adapt, account for added costs, adjust selling prices and generally lessen impacts to your business.
Target update – April 2018
We have recently seen a number of verifications relating to customs tariff heading 8716.90.30.00, covering parts of trailers imported solely for use in the manufacture of new trailers and semi-trailers at a duty-free rate.
CBSA is currently targeting these imports to verify that the product is legitimately duty-free, due to the possibility that some parts used to repair trailers are being incorrectly imported under this tariff heading. In such a case, the product would be reclassified to a dutiable customs tariff item at a rate of 6.5%.
CBSA is currently targeting these imports to verify that the product is legitimately duty-free, due to the possibility that some parts used to repair trailers are being incorrectly imported under this tariff heading. In such a case, the product would be reclassified to a dutiable customs tariff item at a rate of 6.5%.
What to do
If you import any of the targeted goods – or think the CBSA could consider your goods to be included in their target list – our audit specialists recommend the following:
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Conduct an internal review to ensure accurate and complete documentation of your imports
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Provide your customs broker or consultant with detailed technical information on your products, and copies of any past rulings, verification results or custom opinions so they can help review your product classifications
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Consider making a voluntary disclosure if that review reveals any errors or omissions
We can help
Our dedicated Audit Response Unit is staffed by professionals with extensive experience managing customs verifications who keep current on audit trends. They understand the potential risks and costs to a business facing an audit and work with clients to both avoid being audited and to respond effectively if an audit does happen.
Information provided by: Audit Response Unit (ARU) - Cole International
