Compliance Verification Trends - September 2021

Canada Border Services Agency (CBSA) prioritizes certain industries and products for verifications to ensure ongoing compliance. The Agency keeps its 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 penalties. It’s worth staying on top of the targeted items and making sure you comply with all customs requirements.

Update – September 2021

We have received several Directed Compliance Letters, which are similar to CBSA verifications but slightly less formal. These Directed Compliance Letters usually target one specific customs transaction. However, all entries for the same or similar products still need to be reviewed to ensure proper tariff classification is met.

The following items have been targeted by CBSA  for tariff classification verifications:

• pickled vegetables
• vacuum trucks
• lithium Ion battery packs
• lights for motorcycles and bicycles

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 a Trade Compliance Verification—and work with you to both avoid and respond effectively if a Verification does happen.

Watching audit trends. It's what we do.