CBSA Announces New Duty Liability Rules for Importers of Record

The new rules aim to align Canada’s customs duty processes with best practices by clarifying responsibilities for all entities involved in the importation process.

The Canada Border Services Agency (CBSA) has published Memorandum D17-2-5 to update and clarify the duty liability rules for importers of record. This update will affect importers, customs brokers, and other authorized agents involved in importing goods into Canada.

The new rules will take effect on January 1, 2026, and redefine the accountability for customs duties after goods have cleared customs.

The importer of record’s role carries substantial responsibility, as it designates them as the primary party liable for all customs duties, reassessed amounts, and post-clearance adjustments.

This liability will now extend beyond initial clearance, even when re-determinations or reappraisals are conducted.

Under the new rules, owners and importers listed on customs documents may also share joint liability with importers of record, particularly in cases of post-accounting audits or corrections. 

As a Canadian importer, here’s what you need to know about the new duty liability requirements.

Defining key roles in duty liability

The memorandum clarifies the distinctions between key roles involved in duty liability:

• Importer of record: This is the party officially listed on the CBSA’s customs declaration forms as responsible for the entry of goods into Canada. The importer of record, identified by their Business Number (BN), assumes primary duty liability and is the main point of contact for CBSA’s post-accounting verifications and compliance checks.

• Importer/owner: The importer or owner is the individual or entity bringing goods into Canada or holding ownership of the goods when the CBSA released them.
  
  
• Person authorized: Authorized persons, which include those in CBSA’s Courier Low-Value Shipment (CLVS) Program, may account for goods on behalf of an importer or owner.

Duty liability after final accounting

Under the updated memorandum, an importer of record may face additional duties even after final accounting due to re-determinations, further re-determinations, reappraisals or other legislative obligations. The reasons for these include:

• Corrections to declarations: If the importer has reason to believe that their declarations are incorrect, they are obligated to adjust origin, tariff classification, or value for duty (per Section 32.2 of the Customs Act).

• CBSA audits and verifications: The CBSA may conduct audits or verifications (Sections 42, 42.01, 42.1) on imports.

• Legislative obligations: Re-determinations or further redeterminations under sections 59(1), 60(4), or 61(1) of the Customs Act.

Importers should maintain documentation and be prepared to address CBSA’s reassessment needs beyond the initial import phase.

Primary duty liability

As per the memorandum:

• Only one importer of record can be declared for a shipment, but multiple entities can be classified as owners or importers.
  
  
• The CBSA considers the importer of record the primary contact for verifications and the entity with direct liability for post-accounting obligations, including record-keeping, making corrections, and duty payment.
  
  
• The CBSA expects that if the importer of record, the importer, or the owner of goods are different entities, they work cooperatively before, during, and after final accounting to ensure joint compliance with the Customs Act.

• Unauthorized entities who act as importers of record may face CBSA sanctions and duty obligations. Importers should ensure that only qualified agents are appointed to handle this role.

Authorized agents sometimes assume the dual role of a customs broker or persons authorized and importer of record under the direction of the importer or owner of the goods.

Memorandum D11-6-11 outlines the responsibilities related to post-accounting obligations taken on by authorized agents acting as importers of record under the guidance of commercial entities.

Shared duty liability

The CBSA considers the importer of record the first contact for verifications and the primary liability holder for debts. However, other persons share liability for payment of duties when the agency determines they were the importer(s) or owner(s) through implicit or explicit contracts or codependent import intentions.

Key points to note:

• Verification outreach: The CBSA reserves the right to contact importers or owners during verification, even if they are not listed as the importer of record.

• Liability enforcement: Should an importer of record default, other entities involved in the import transaction may be liable for outstanding duties, either individually or jointly.

The CBSA advises all parties involved to create clear contractual agreements regarding duty liability and refund management to prevent misunderstandings and ensure compliance.

Preparing for the new duty liability rules

We encourage importers, authorized agents, and customs brokers to take the following steps as soon as they can:

1. Review their internal processes to ensure their duty liability responsibilities align with CBSA’s updated memorandum.

2. Clarify duty liability agreements with customs brokers or agents who may serve as the importer of record.

3. Stay informed about record-keeping and compliance obligations to facilitate transparent post-accounting practices.

For more information about this update and to ensure your operations align with the upcoming changes, please reach out to one of our trade professionals.