New Canada Customs Trade Compliance Verification Targets for 2017

 CBSA has released its 2017 compliance verification priorities for tariff classification and valuation, which can be found in detail at http://www.cbsa-asfc.gc.ca/import/verification/menu-eng.html.

Trade compliance with the Tariff Classification, Valuation and Origin programs is managed using the following two post-release verification processes. 

1) Random verifications 

2) Verification priorities 

 

Random Verifications 

Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including: 

  • Risk assessment
  • Revenue assessment; and
  • Promoting voluntary compliance

 

Verification Priorities 

Targeted verification priorities are determined through a risk based, evergreen process, meaning that new targets are added continually throughout the year.

The following items have now been included as a priority in the tariff classification category:

Olive Oil

  • The risk identified is that imported goods could be incorrectly classified as olive oil (under Heading 15.09) or other oils obtained solely from olives (under Heading 15.10) which are duty free, instead of being properly classified elsewhere within Chapter 15 and be subject to duty rates up to 11%.
  • This verification priority was released in October 2016
  • Results are not yet available.

 

Photographic Film

  • The risk identified is that imported goods could be incorrectly classified as photographic film (under Heading 37.02), instead of being properly classified under Chapter 96, and be subject to a duty rate of 8.5%.
  • This verification priority was released in October 2016
  • Results are not yet available.

 

Stone Blocks and Slabs 

  • The risk identified is that imported goods could be incorrectly classified as stone blocks and slabs (under Headings 25.14, 25.15 and 25.16) which are duty free, instead of being properly classified under various tariff items within Chapter 68 and be subject to duty rates up to 7%.
  • This verification priority was released in October 2016
  • Results are not yet available.

 

Railway Equipment

  • The risk identified is that imported goods could be incorrectly classified as railway equipment (under Heading 86.08), instead of being properly classified under various tariff items and be subject to duty rates up to 6.5%.
  • This verification priority was released in October 2016.
  • Results are not yet available.

 

Sausages and Similar Products

  • The risk identified is that imported goods could be incorrectly classified as sausages and similar products (under Heading 16.01), instead of being properly classified under a tariff rate quote (TRQ) tariff item and be subject to duty rates of over 200%.
  • This verification priority was released in October 2016
  • Results are not yet available. 

In addition to the new priorities, CBSA has issued a third round of classification verification for curling irons, and second round verifications for batteries, special purpose motor vehicles, parts for power trains, bicycle parts and sacks and bags under Tariff Item 9903.00.00.

If your company imports any of the products on this list, please give us a call. You will likely be targeted for a potential compliance audit. If you do receive a call or letter from Canada Customs, please contact your Near North account representative before you provide any information to CBSA. The time allotted to provide information can be very short.

If you would like to discuss the classification, valuation or determination of origin of any of the goods you import, not only for the goods listed, please don't hesitate to contact Near North's Compliance or Consulting department.