Compliance Verification Trends Issue #5 - July 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 – July 2019

Our Audit Response Unit has recently seen verifications targeting steel companies where the customs transaction is between related parties.

They are looking to see if there is a proper profit margin included in the customs value along with any other additional charges typical of steel imports, such as mill surcharges, fuel surcharges, scrap surcharges, freight deductions, and the like.

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
• A voluntary disclosure if your review reveals any errors or omissions

We can help

Our dedicated Audit Response Unit is staffed by professionals who keep current on verification trends and have decades experience managing customs verifications. They understand the potential risks and costs to a business facing an audit—and work you to both avoid being audited and to respond effectively if an audit does happen.

Watching audit trends. It's what we do. 

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