Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



The CBSA's Trade Compliance Post-Release Verification Hit List of 2011

The Canada Border Services Agency (CBSA) conducts 4 main types of verifications (audits) in connection with imports of commercial goods:

1. At-the-border Verifications: These verifications occur at the time goods and people pass through Canada's borders.

2. Post-Release Verifications: These verification occur after goods are released by the CBSA and are intended to verify the information provided by businesses when goods are reported for customs purposes (compliance with Canada's customs laws).

2A) Random Post-Release Verifications: These verifications are random. The CBSA randomly selects importers from their records and conducts an verification to measure compliance with Canada's customs laws and revenue seepage. In other words, the importer's number just came up.

2B) Targeted Post-Release Verifications: These verifications are not random. The importer is selected due information provided to the CBSA concerning non-compliance with Canada's customs laws.

2C) Post-Release Verifications Based on National Priorities: These verifications occur as a result of the CBSA setting national priorities that are determined through a risk-based assessment and evergreen process. The CBSA picks H.S. tariff codes on an annual basis to target for verifications and semi-randomly picks importers of those goods for a targeted verification. Often the importers with significant volumes of the goods are selected for verification and importers who have not been audited recently. The CBSA is asking the question whether the importing community is making mistakes with respect to a particular type of goods.

The CBSA's Post-Release Verification list for 2011 are:

 

Type of Goods

H.S. Codes

Comments

Gloves

Headings 40.15, 42.03, 61.16, 62.16,39.26, 42.03

On list previously and significant non-compliance identified

Focus of verification will be tariff classification & tariff treatment

Cotton Yarn

Headings 52.05, 52.06, 52.07

Focus of verification will be tariff classification & tariff treatment

Furniture Parts

Heading 94.03

Focus of verification will be tariff classification & tariff treatment

Organic surface-active agents - soap and other than soap

Headings 34.01 and 34.02

Focus of verification will be tariff classification & tariff treatment

Copper and articles thereof

Various goods under Chapter 74

Focus of verification will be tariff classification & tariff treatment

Stone vs. articles of stone

25.14, 25.15, 25.16, 68.01, 68.02, 6803.00.90, 6803.00.10.10

Focus of verification will be tariff classification & tariff treatment

Juice products

Heading 20.09

On list previously and significant non-compliance identified

Focus of verification will be tariff classification & tariff treatment

Textile Bags

3923.29.90.90

Focus of verification will be tariff classification & tariff treatment

Ski apparel

Various goods under chapters 39, 61 and 62

Focus of verification will be valuation of goods

Parts of gas turbines

8411.99.20.11, 8411.99.20.19, 8411.99.290.90

Focus of verification will be valuation of goods

Light-duty automotive goods

Various god under chapter 87

Focus of verification will be valuation of goods

Bulk shipment of ore

Chapter 36

Focus of verification will be valuation of goods

Plastic household goods

Heading 39.24

Focus of verification will be valuation of goods

Motor car, bus and lorry tires

Various goods under heading 40.11

Focus of verification will be valuation of goods

Video recording apparatus

8521.90.90.00

Focus of verification will be valuation of goods

Pumps for liquids

8413.11.10, 8413.19.10, 8413.70.99

Focus of verification will be valuation of goods

Article of jewellery and parts

Heading 71.13

Focus of verification will be valuation of goods

Mattresses

Heading 54.07, and Chapters 55 and 60

Focus of verification will be origin of goods

Electric generators

Heading 85.01

Focus of verification will be origin of goods

Vegetable fats

1516.20.90.41, 157.90.99.00

Focus of verification will be origin of goods

Pumps for liquids

8413.11.10, 8413.19.10, 8413.70.99

Focus of verification will be origin of goods

Cocoa powder

1805.00.00, 1806.10.10, 1806.10.90

Focus of verification will be origin of goods

This does not mean that all importers who import the goods on the 2011 hit list will be audited. It does mean that some importers of the good on the list will be audited in 2011/2012. Importers of the goods on the list should conduct their own internal verifications and determine whether they are importing goods in compliance with previously issued ruling letters, tariff classification case law, CBSA policy and other statements of the law. If an importer identifies errors prior to being contacted by the CBSA for a verification, that importer may be permitted to make a voluntary disclosure of its non-compliance and the CBSA may waive the penalties that would have been payable if the CBSA discovered the non-compliance during a verification.

For more information, please contact Cyndee Todgham Cherniak at 416-307-4168.

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