Trade verifications are regularly carried out by the Canada Border Services Agency (CBSA) to ensure importers are compliant with various import rules and regulations.
The CBSA manages this program by conducting audits and verification primarily in the following three areas:
- Tariff Classification;
- Valuation; and
These verifications are performed using:
- Random verification, which is designed to measure compliance rates and assess potential revenue loss; and
- A verification priorities list (i.e., the CBSA “Hit List”), which is designed and determined through risk-based processes.
The priorities list can be helpful to importers concerned about the prospect of a compliance verification audit as it details specific types of imported goods on which the CBSA intends to focus its compliance efforts. The latest list of CBSA verification priorities can be found at the following link: https://www.cbsa-asfc.gc.ca/import/verification/menu-eng.html
If you are selected for an audit and non-compliance is determined by the CBSA, corrective measures, such as self-correction of your import documentation for up to four years, will be compulsory.
Businesses that import goods listed on the priorities list are encouraged to review their internal processes in preparation for the possibility of a trade compliance audit and help avoid the potential imposition of penalties under the administrative monetary penalty system.
Our team of customs and duty professionals can assist your organization with a preliminary review or an internal audit to advance your trade compliance profile and avoid potential exposures related to non-compliance.