Compliance Verification Trends Issue #4 - May 2019

Canada Border Services Agency prioritizes certain industries and products for audits to ensure ongoing compliance. The Agency keeps their verification priority list current on their website. Cole’s Audit Response Team also keeps track of trends we see in CBSA verifications, which we share with you regularly so you can feel secure about your customs compliance.

Forewarned is forearmed

Preparation is key if you are importing targeted items.

Items on the CBSA’s priority list are very likely to be audited. So, it’s important that you know which goods are being targeted, and that you ensure customs compliance when importing those items. Being prepared gives you the chance to adapt, account for added costs, adjust selling prices, and generally soften the impacts to your business.

If you aren’t prepared and CBSA finds non-compliance, you may be facing duties, taxes, and additional penalties. It’s worth staying on top of the targeted items and making sure you comply with all customs requirements.

Target update – May 2019

Our Audit Response Unit has recently seen verifications relating to customs tariff headings 8539.50 (LED light bulbs) and 9405.99 (covering parts for lights) claimed at a duty free rate.

We have seen a trend in the CBSA looking deeper into these types of products to verify whether they are better classified under heading 94.05 as lights and lighting fixtures, which were subject to a duty rate of 7%.

What to do

If you import any of the targeted goods, or goods close in nature to those on the target list, our audit specialists recommend:

• an internal review to ensure your imports have accurate and complete documentation;
• detailed technical information on your products, and copies of any past rulings, verification results, or custom opinions so your customs broker or consultant can help review your product classifications; and
• a voluntary disclosure if your review reveals any errors or omissions.

We can help

Cole's Consulting Department has extensive knowledge and expertise in these areas. Our dedicated Audit Response Unit is staffed by professionals who keep current on verification trends and have decades of experience managing customs verifications. They understand the potential risks and costs to a business facing an audit—we work with you to both avoid being audited and to respond effectively if an audit does happen.

Contact us today to get in touch with one of our experienced customs professionals with any questions about your import business.

Watching audit trends. It's what we do. 

Information provided by: Audit Response Unit (ARU) - Cole International