Canada Border Services Agency (“CBSA”) conducts periodic trade compliance verification audits to monitor importers’ compliance with the customs and other government department requirements. Every year, CBSA conducts about 2,000 compliance verifications. In order to ensure its resources are spent on high-risked goods and people, CBSA focuses its verification efforts on the national priorities, which are set on a yearly basis. 

In 2007-2008, CBSA’s national priorities that were selected with respect to non-compliance related to tariff classification were furniture parts, sawn lumber, gloves, and soap.

In 2008-2009, CBSA’s national priorities for compliance verification were:
Tariff Classification: juice products
Origin*: large household appliances, sport/fishing equipment, swimming pools, air conditioners
Valuation: ski apparel, video/DVD recording apparatus, large household appliances, parts of gas turbines, bulk shipments of ore, light-duty automotive goods
* In addition, one “unnamed company” has been identified as a “national priority” for “origin” determination.

In 2009-2010, CBSA’s national priorities for compliance verification so far** are:
Tariff Classification: magnesium sulphates, cotton yarn, copper and articles thereof, stone vs. articles of stone, reclaimed rubber, furniture parts, gloves, soap
Origin: vegetable fats and oils, articles of bedding/similar furnishings, perfume and toilet water industry, mattress upholstery, electric generators
Valuation: plastic household goods
**The list reflects the verification priorities at the time of writing (November 2009).

Through its risk assessment process, CBSA has recently added priorities to the list and the updated list will be released periodically through the year.
 
Comparing to last year’s national priorities, in 2009-2010, the total number of products has increased from 12 items to 14 items (and this number is expected to be higher as CBSA has releases the recently added priorities to the list) and the focus of verification has switched from valuation to tariff classification. 

Importers of the newly selected national priorities can expect to receive a Notice of Verification Assessment from CBSA.

As importers caught in prior years’ priorities will know, one cannot lower their guard because they somehow escaped audit last year. Many of the items selected for 2007-2008 compliance verification (e.g., furniture parts, gloves, and soap) are back on the priorities list again. 

The lesson for all importers is they must be vigilant in maintaining ongoing customs compliance!

 
This article was written by Robert G. Kreklewetz and Jenny Siu, Millar Kreklewetz LLP.

TOP

• We Need Your Input! Member Survey
• Importing Into Canada
• Global Trade 2010: What's Next?
• 5th Annual Food Forum
• Western Canada Conference

TOP

Would you like to advertise in or sponsor I.E.Now? Please contact Linda Bott at: lbott@iecanada.com or by calling (416) 595-5333, ext. 28 for further details.

If you do not wish to continue receiving I.E.Now, please contact Jane Carter at: jcarter@iecanada.com. Type in Unsubscribe in the Subject line.

Disclaimer - I.E.Now is designed to provide members with the most up-to-date trade information from a variety of sources. The information we feature does not necessarily reflect the association's opinion on a given international trade issue. While every effort has been made to ensure the accuracy of the information notedin the daily e-mail, government policies are constantly evolving. The Canadian Association of Importers and Exporters Inc. cannot assume any responsibility for actions taken solely or principally on the basis of the information provided.