Trade Verifications are regularly carried out by the Canada Border Services Agency to ensure businesses are compliant with import rules and regulations. The agency publishes its verification priorities twice a year – in January and July – to provide importers with advance notification about customs audits. Companies can use this listing as a timely prompt to review their own internal trade compliance practices and, if necessary, modify them accordingly.
What is the CBSA Verification Program?
Verification is managed in two ways, by random verifications or verification priorities. Some priorities carry over from one year to the next and some, like those looking into the valuation of footwear and apparel, are perennial. The overall goal of these verifications is both to enforce compliance with customs requirements and ensure that the correct amount of duties is being assessed.
In addition to verification priorities that are determined by risk-based, long-term processes (with new targets added during the year), CBSA also undertakes random verifications, which help it measure compliance rates and estimate potential revenue loss.
2022 Verification Priorities
The priorities released as of January 2022 for Tariff Classifications, Valuation, and Origin are as follows:
- Bicycle Parts (Round 3 – New!): Heading 87.14
- Parts for Use w/ Machinery of Ch. 84 (Round 3– New!): Heading 84.31
- Spent Fowl (Round 2): Headings 02.07, 16.01 and 16.02
- LED Lamps (Round 3): Heading 85.39
- Furniture for Non-Domestic Purposes: Headings 94.01 and 94.03
- Batteries (Round 4): Heading 85.06
- Footwear – $30+ per pair (Round 4): Heading 64.03
- Parts of Lamps (Round 4): Heading 94.05
- Pasta (Round 3): Heading 19.02
- Cellphone Cases (Round 3): Headings 39.26, 42.02 and 85.17
- Pickled Vegetables (Round 5): Heading 20.01
- Gloves (Round 2): Headings 39.26 and 42.03
- Other Mountings & Fittings, Suitable for Furniture (Round 2): Heading 83.02
- Air Heaters & Hot Air Distributors (Round 2): Heading 73.22
- Flashlights & Miners’ Safety Lamps (Round 2): Heading 85.13
- Stone Table & Countertops (Round 2): Heading 94.03
- Parts of Machines & Mechanical Appliances: Heading 84.79
- Other Chemical Products: Heading 38.24
- Apparel (Round 4): Chapters 61 and 62
- Footwear (Round 2): Chapter 64
- There are no active origin verification priorities at this time.
For more detailed information about the nature of the risk(s) identified in connection with each of the verification priorities, as well as the outcome of prior audits, click here.
If You Import Targeted Goods, What Should You Do?
The likelihood of your import(s) being selected for an audit if you are importing commercial products specifically identified on CBSA’s Trade Compliance Verifications list obviously increases significantly.
In such cases, being proactive and immediately conducting a review or internal audit will help to avoid any unwelcome surprises down the line. In addition to mitigating the risk of incurring Administrative Monetary Penalties for non-compliance, this approach has the advantage of ensuring that your internal records are current and readily accessible in the event that CBSA requests them.
Our Global Trade Services Team can assist your company with a preliminary review or a complete internal audit. Additionally, our Trade Specialists can provide you with professional guidance to help improve your overall trade compliance profile with the CBSA.