Trade Compliance

GHY discusses changes to international trade regulations and explores cutting-edge compliance strategies.

2014-15 CBSA Report on Plans and Priorities

Posted March 10, 2014

The Canada Border Services Agency has released its Report on Plans and Priorities (RPP) for 2014-15 which provides details over a three-year period of the organization’s main priorities by strategic outcome, program and planned/expected results to inform members of Parliament on planned expenditures and support the consideration of supply bills.
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Overall planned spending by the agency for 2014-15 is estimated to be $1.7 billion, reducing to $1.6 billion in 2015-16 and $1.5 billion in 2016-17.

With regards to the CBSA’s Trade Compliance Program, planned spending for 2014-15 is estimated to be $64 million, reducing to $59 million in 2015-16 and $57 million in 2016-17. The decrease in planned spending is mainly due to the completion of the project definition phase of the Assessment and Revenue Management project (CARM) and the anticipated delivery on core commitments set out in the Beyond the Border Action Plan.

Compliance activities within this program include random verifications, selected using a statistical model, that are used to measure the rate of compliance by product type and/or industry. The results also provide valuable information that often lead to more focused, risk-based verifications in instances where non-compliance is suspected. These trade compliance activities are supported by robust monitoring and administrative penalty programs.

Each year, the CBSA assesses approximately $25 billion in total import revenue. While that amount of revenue is influenced by the economy and fluctuating trade volumes, vulnerabilities related to importer non-compliance increase the risk that the Government of Canada will not collect the full amount of duties and taxes owing.

In 2014–15, the Agency states that it will be exploring options to distribute its measurement workload over multiple years to allow for more resources to be allocated to targeted verifications, which typically result in larger assessments. The agency also indicates that in coming year it will implement a process through which importers can submit blanket adjustments, whereby amendments are matched to original entries to properly verify the amount of duty and taxes owed.