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CBSA Updates Trade Compliance Verification Targets

Posted July 31, 2020


The Canada Border Services Agency recently published an amended list of its current compliance verification priorities as of July 2020, to update the status of various goods under ongoing review and include several new additions.
Businessman focusing on audit
Designed to measure compliance rates and revenue loss, the CBSA’s targeted verification priorities are determined through a risk-based, “evergreen” process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years.

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New Compliance Verification Priorities


Additions to the list of the CBSA’s compliance verification priorities include the following goods:

Spent Fowl

Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
Identified Risk: Goods (i.e., old laying hens) could be incorrectly classified as spent fowl within Headings 02.07, 16.01, and 16.02, instead of being properly classified under tariff items subject to tariff rate quotas (TRQs) within the same Chapters, and potentially be subject to significantly higher duty rates.

LED Lamps

Harmonized System Number(s): Heading 85.39
Identified Risk: Goods could be incorrectly classified as light-emitting diode (LED) lamps under Heading 85.39, instead of being properly classified under Heading 94.05, and be subject to a duty rate of 7%

Batteries

Harmonized System Number(s): Heading 85.06
Identified Risk: Batteries may be misclassified under duty-free tariff items within Heading 85.06, whereas they should be properly classified under other tariff items within the same Heading, Bot dutiable at 7%.

Parts of Lamps

Harmonized System Number(s): Heading 94.05
Identified Risk: Goods could be incorrectly classified as parts of lamps, within Heading 94.05, instead of being properly classified elsewhere within the same Heading, or under other Chapters, and potentially be subject to various duty rates.

Other Mountings & Fittings, Suitable for Furniture

Harmonized System Number(s): Heading 83.02
Identified Risk: Goods could be incorrectly classified as mountings and fittings, suitable for furniture, within Heading 83.02, instead of being properly classified elsewhere within various Chapters, and be subject to duty rates up to 6.5%

Note: A complete list of all CBSA’s current and ongoing compliance verification priorities is available here

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Need More Information?


Should you have any questions about the CBSA’s verification targets and how your imports may be affected and/or how to responsibly guard against the consequences of random verifications, don’t hesitate to contact one of our knowledgeable and helpful trade experts to discuss this important issue in more depth.

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