What happens during a CUSMA origin verification?

A CUSMA origin verification allows the CBSA to confirm whether your imported goods qualify for preferential tariff treatment. If your origin claim cannot be substantiated, you may face additional duties, interest, and compliance obligations.

At a glance

• The CBSA can verify your CUSMA origin claim even when you have a valid certification of origin
• You may need to provide supporting documentation, and you generally have at least 30 days to respond to a verification questionnaire
• If your goods fail verification, you could lose preferential tariff treatment and owe additional duties and applicable interest
• You may need to correct previous import declarations within 90 days of having reason to believe they are incorrect

A CUSMA origin verification can leave Canadian importers facing unexpected duties on goods they believed qualified for preferential tariff treatment under the Canada-United States-Mexico Agreement (CUSMA).

To qualify for CUSMA benefits, goods imported from the U.S. or Mexico must meet specific rules of origin. Whether goods qualify as originating depends on factors such as where they were produced, the ⁠origin of materials used in production, and the product-specific rules that apply based on their ⁠tariff classification.

Even with a valid certification of origin, the Canada Border Services Agency (CBSA) can request evidence that your goods meet these requirements. If your claim cannot be substantiated, the consequences may extend beyond the shipment under review.

In this article, we explain how the verification process works and what happens if your goods fail to qualify.

Why does the CBSA verify CUSMA origin claims?

The CBSA conducts origin verifications to confirm that ⁠preferential tariff treatment has been claimed correctly and that sufficient evidence exists to support the claim.

Although a ⁠CUSMA certification of origin supports your claim, the CBSA may request additional documentation to verify the information provided.

The verification helps the CBSA determine whether your goods satisfy the applicable ⁠CUSMA rules of origin and whether you are entitled to the preferential tariff treatment claimed.

What happens during a CUSMA origin verification?

The verification process typically begins with the CBSA requesting information to support your claim. Depending on the circumstances, the request may go directly to you, your exporter, or the producer of your goods. If the CBSA starts the verification with your exporter or producer, it must also notify you.

According to ⁠CBSA Memorandum D11-4-20, Appendix I, the CBSA can review documents, send questionnaires, or visit an exporter’s or producer’s facilities to examine how the goods were made.

You generally have at least 30 days from receiving a verification questionnaire or written request to respond.

Your responsibilities depend partly on who completed the certification of origin. If you certified the goods yourself, you must be able to support your claim. If your exporter or producer completed the certification, the CBSA must seek information from them before denying your claim solely because you cannot provide sufficient evidence.

Supplier cooperation is also important. If your exporter or producer refuses to consent to a verification visit, the CBSA may deny preferential tariff treatment for your goods.

If the CBSA finds that your goods may not qualify, you have an opportunity to address its concerns.

Before denying preferential tariff treatment, the CBSA must share its preliminary findings and issue a notice of intent to deny, giving you at least 30 days to submit additional information.

The process concludes with a written determination explaining the CBSA’s findings. This must generally be issued within 120 days after the CBSA receives all necessary information, although the period may be extended by up to 90 days in exceptional circumstances.

What happens if your goods fail a CUSMA origin verification?

If the CBSA determines that your goods do not qualify under CUSMA, it may deny or withdraw preferential tariff treatment. This can result in additional customs duties and applicable interest.

A negative determination may also affect other shipments involving the same goods. Repeated false or unsupported origin claims may lead the CBSA to withhold preferential tariff treatment on identical goods until compliance is established.

A negative determination may also give you reason to believe that previous import declarations were incorrect. Under ⁠section 32.2 of the Customs Act, you must generally correct affected declarations within 90 days of having ⁠reason to believe they are incorrect, including where the correction results in duties owing or is revenue-neutral.

This correction obligation ends four years after the goods are accounted for. Failure to make required corrections may result in penalties.

If you disagree with an eligible CBSA re-determination, you can generally request a further re-determination under ⁠section 60 of the Customs Act within 90 days after notice of the decision is given. You must also pay the duties and interest owing or provide acceptable security before making the request.

Get support with your CUSMA origin verification

Cole International provides trade consulting and customs brokerage services to help Canadian importers assess CUSMA eligibility, review origin documentation, and meet customs compliance requirements.

If you receive a CUSMA origin verification notice from the CBSA, reach out to one of our trade professionals for help understanding the requirements and addressing potential compliance issues.