Compliance Verification Trends - June 2021

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.

Update – June 2021

We received two new verifications from CBSA. 

• One is concerning a valuation verification for a Non-Resident Importer. 

• The other is for a NAFTA verification on cases classified under HS 4202.92.90. This classification covers cases with outer surface of sheeting or plastics or of textile materials.

Please note, this is a NAFTA verification and not for USMCA/CUSMA. CBSA has the right to go back four years to audit, and they are working on a NAFTA verification. 

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 of experience managing customs verifications. They understand the potential risks and costs to a business facing an audit—and work with you to both avoid being audited and to respond effectively if an audit does happen.

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

Watching audit trends. It's what we do.