The key to managing reason to believe is understanding that the correction clock starts with the information available to you, not with a CBSA notice.
For Canadian importers, reason to believe is the point where a possible customs error becomes a compliance obligation.
Under the Customs Act, the duty to correct can begin when you have information that indicates a declaration may have been incorrect. It doesn’t mean the CBSA has flagged you, and it doesn’t require final confirmation of the error.
In this article, we explain what reason to believe means, what triggers it, the 90-day correction rule, and the most common mistakes importers make and how to avoid them.
Reason to believe is a compliance standard based on the specific information available to you at a given point in time. It is not a formal finding or a legal ruling.
As an importer, you may have reason to believe when there is an objective basis for believing that a declaration of origin, tariff classification, or value for duty may be incorrect for your imported goods.
For commercial goods, that declaration is made through the Commercial Accounting Declaration (CAD).
You don’t need to be certain that an error occurred, and you don’t need final documentation proving it. If the information available indicates that the original declaration may have been wrong, that may be enough to trigger your obligation to correct it.
If the CBSA later conducts a verification and finds an error, it may look at when you first had reason to believe something was wrong. If that happened before you filed a correction, you may already be non-compliant.
Specific information that may trigger reason to believe in importing includes:
Under section 32.2 of the Customs Act, you must make a correction within 90 days from the date you first had reason to believe the original declaration was incorrect.
This rule applies to incorrect declarations when the correction would result in an amount payable to the CBSA or would be revenue neutral.
The 90-day clock starts when the specific information becomes available to you, not when your review is complete or the CBSA contacts you.
Depending on the issue, the correction obligation may extend as far back as four years from the date the goods were accounted for. If new information emerges after an initial correction, further corrections may also be required.
If the deadline has already passed, you may request corrective measures under the Voluntary Disclosures Program and seek relief from penalties and interest.
The obligation to correct applies to the importer of record, even if a customs broker submitted the declaration on the importer’s behalf. For commercial goods, those corrections are made through the CAD.
Reason to believe can catch importers off guard. Here are three common mistakes to watch for:
The obligation to correct arises when you have reason to believe a declaration may be incorrect, not when you have confirmed it.
To reduce this risk, don’t wait until an error is fully established before acting. If you receive information that suggests a previous declaration may be incorrect, treat it as a potential trigger and review it right away.
The 90-day correction window is based on when you first had reason to believe a declaration was incorrect, not when the CBSA issues a notice, starts a verification, or contacts you.
Don’t wait for formal CBSA action before reviewing an issue. Instead, watch for internal findings, supplier updates, broker advice, or pricing changes that may affect a previous declaration.
If you cannot show when an issue first came to your attention, it becomes difficult to demonstrate that you acted within 90 days.
To prevent this, record the date when the issue appeared, what information was received, and the actions that followed.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses navigate customs requirements and address issues before they affect their operations.
Reach out to one of our trade professionals to discuss your import compliance practices and determine whether any past declarations may need to be reviewed.