The Canada Border Services Agency recently published an updated list of its current compliance verification priorities as of January 2021. The semi-annual list identifies products that are of concern to the agency in terms of potential revenue loss due to tariff misclassification, undervaluation, or misstatement of origin.
All items on the current list are the subject of ongoing investigations, with no new products having been added at this time; presumably, a consequence of restrictions imposed by the COVID-19 pandemic.
Compliance Verification Targets
- Spent Fowl (Round 2): Headings 02.07, 16.01 and 16.02
- LED Lamps: Heading 85.39
- Furniture for Non-Domestic Purposes (Round 3): Headings 94.01 and 94.03
- Batteries (Round 4): Heading 85.06
- Footwear ($30 or more per pair) (Round 4): Heading 64.03
- Articles of Apparel and Clothing Accessories (Round 3): Heading 39.26
- Parts of Lamps (Round 4): Heading 94.05
- Pasta (Round 3) Heading 19.02
- Cell Phone Cases (Round 2): Headings 39.26, 42.02 and 85.17
- Pickled Vegetables (Round 4): Heading 20.01
- Gloves (Round 2): Headings 39.26 and 42.03
- Safety Headgear (Round 4): Subheading 6506.10
- Bags (Round 2): Heading 42.02
- Import Permit Numbers* (Round 2): Chapters 2 and 4
- Other Mountings and Fittings, Suitable for Furniture (Round 2): Heading 83.02
- Air Heaters and Hot Air Distributors (Round 2): Heading 73.22
- Flashlights and Miners’ Safety Lamps (Round 2): Heading 85.13
- Stone Table and Countertops (Round 2): Heading 94.03
- Disposable and protective gloves (Round 4): Subheadings 3926.20 and 4015.19
- Parts of Machines and Mechanical Appliances: Heading 84.79
- Other Chemical Products: Heading 38.24
- Apparel (Round 3): Chapters 61 and 62
- Footwear (Round 2): Chapter 64
- Bedding and Drapery “Made in USA” (Round 2): Variously Classified Under Headings 63.01, 63.02, and 63.03.
*Supply-managed agricultural goods subject to Tariff Rate Quotas.
Those importing goods listed as an audit priority could be subjected to a CBSA trade compliance audit, which may result in potential financial penalties if the verification discloses instances of non-compliance. In addition to possible financial costs and reputational damage of a negative audit finding, companies should be aware that it may also result in supply chain delays due to closer scrutiny being exercised by CBSA.
Planning and implementing appropriate customs compliance measures and knowing what CBSA investigators are looking for in this regard can help your business avoid costly risks. Proactively correcting import mistakes prior to the commencement of an audit will normally result in no penalties being assessed. Additionally, if warranted by the circumstances and allowed by CBSA, companies may find it advantageous to make a voluntary disclosure of non-compliance.
Need More Information?
Should you have any questions about CBSA’s 2021 targets and how your imports may be affected and/or if you want to find out more about responsibly guarding against future trade compliance verifications, don’t hesitate to contact one of our helpful trade experts to discuss this important issue in more depth.