The Canada Border Services Agency (CBSA) regularly conducts trade verifications to ensure importers and exporters are compliant with various rules and regulations.
The CBSA manages this program primarily by conducting audits and other verification activities in the areas of tariff classification, valuation, and origin.
In performing these compliance activities, the CBSA uses:
- Random verification, which is designed to measure compliance rates and assess potential revenue loss; and
- A list of verification priorities, which are determined through risk-based assessment processes.
The verification priorities list (i.e., the CBSA “Hit List”) is helpful guidance for importers concerned about the potential risk associated with a compliance verification audit, as it details specific types of imported goods on which the CBSA intends to focus its compliance efforts.
The CBSA recently released its latest verification priorities list (dated January 2024) and, in addition to the usual targets, it includes the following new items:
- The origin of bedding and drapery;
- The tariff classification of bags; and
- The tariff classification of spent fowl.
The full priorities list can be found on the CBSA website under trade compliance verifications.
If you are selected for an audit and the CBSA identifies a compliance issue, corrective measures to your import documentation will be required for up to four years. Importers can avoid or mitigate potential audit issues by reviewing the priorities list and addressing any compliance concerns. Consider reviewing your internal processes in those areas to help ensure compliance and avoid the potential imposition of penalties under the Administrative Monetary Penalty System (AMPS). To learn more about the AMPS, please see our article on The Importance of Complying with Customs Legislation.
Our team of customs duty professionals can assist your organization with a customs review to improve your trade compliance, prevent the overpayment of customs duty, and identify potential exposures.
If you have any questions or concerns about imports into Canada, please contact the Ryan Customs team.