Compliance Verification Trends Issue #6 - October 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’re 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 – October 2019

Our Audit Response Unit has recently observed that CBSA has been issuing Trade Compliance – Examination of Documents letters to various importers of goods that require import permits to obtain duty free status for their products.

Typical goods that require these types of permits are: dairy products (eg. milk products, cheese, eggs, butter, margarine), meat products (beef or poultry), and prepared foods containing these products.

CBSA is looking to ensure that the importer has obtained a valid permit to enter these goods duty free, and whether or not the quantity and value of the goods declared were covered by the amounts shown on the import permit.

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.
• Ensure copies of permits are on hand and available for submission to CBSA - if requested.
• 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