The Canada Border Services Agency (CBSA) has announced their Phase 1 trade verification priorities for 2018. CBSA conducts verifications and audits to ensure that importers have reported the correct tariff classification, value or NAFTA qualification status for their imported goods.
This list of priorities includes items carried over from the previous years, along with new targets. It is important to note that a target item remains on the priority list because of significant errors identified with either the tariff classification, valuation or NAFTA qualification of the imported good during the previous year.
If you import goods that are listed as an audit priority, there is a high probability that your business will be subject to a CBSA audit. This probability increases the longer a good stays on the list.
If you are selected for an audit by CBSA and errors are found, this can result in the assessment of further duties, taxes, and in some cases, punitive interest and monetary penalties. Negative audit results can impact your bottom line, create delays at the border or impact supply chain ratings.
You can potentially avoid these costly impacts to your business by pro-actively reviewing the information that has been reported to CBSA, and correcting any errors discovered well in advance of any audit. It could be as simple as filing an amending document or in more extreme cases, making an application under the Voluntary Disclosure program.
The full list of goods on CBSA’s Trade Compliance Verification list can be found here. Some highlights of the items being looked at are:
- Articles of Apparel and Clothing Accessories
- Articles of Plastic
- Mountings, Fittings and Similar articles
Buckland has a full International Trade Compliance and Consulting department to assist in evaluating potential risk for punitive interest and penalties and to guide you through the correction or voluntary disclosure programs. In addition to this, Buckland is able to assist throughout the audit process in the event that you are selected for a review by the CBSA.
Please don’t hesitate to reach out to us for more information if we can be of assistance with ensuring that your business stays compliant.
Buckland is pleased to share this update and we hope that this information will be useful and beneficial. As a customer-focused company, we provide you with a single source of unmatched Customs Brokerage (Canadian, US, Mexican), Trade Managed Solutions, Freight Forwarding, Trade Technologies and Warehousing/Distribution Services. If you have questions, please reach out to Buckland today.