New CBSA Tools for Trade Compliance
As part of its Trade Compliance Strategy and to supplement trade compliance verification efforts, the Canada Border Services Agency (CBSA) is deploying three new trade compliance tools. The new tools are:
- Trade Advisory Notice
- Compliance Validation Letter
- Directed Compliance Letter
Why is the CBSA deploying these new trade compliance tools?
Traditional CBSA trade compliance verifications are not always the most efficient means for trade chain partners and the CBSA to identify and address instances of non-compliance. Traditional verifications are lengthy and labour-intensive, and because they are generally initiated and concluded well after the importations have occurred, can result in mounting industry costs, particularly when recurring non-compliance is confirmed.
Trade Compliance Verifications will continue to be CBSA’s most comprehensive compliance tool. Introduction of these additional tools will enhance the overall efficiency and effectiveness of CBSA’s compliance regime by:
- Promoting voluntary compliance
- Enabling early correction of errors
- Mitigating future costs of non-compliance where recurring importations repeat undetected errors
What to expect?
These new trade compliance tools will target various circumstances and risks of non-compliance and so each carries varying degrees of CBSA intervention. The tools target specific import transactions, as opposed to trade compliance verifications, which examine all importations over a period (normally one year – see items selected for trade verification priorities for 2022 here).
- Trade Advisory Notice (TAN) :
- Nudges provide importing community with guidance to assist them where there is a potential for non-compliance
- Letter to importer containing request to review declaration and public resources for guidance
- No monetary assessment issued as a result of a TAN
- Compliance Validation Letter (CVL):
- Addresses instances of suspected non-compliance
- Letter to importer with request to provide information to the CBSA within 30 days
- Directed Compliance Letter (DCL):
- Addresses instances of known non-compliance
- Letter to the importer accompanied by a monetary assessment
The new tools are in effect as of January 1, 2022. As is the case for Trade Compliance Verifications, recourse provisions of the Customs Act apply to any resulting assessments.
For more information about the CBSA’s trade compliance in general, visit: CBSA Trade Compliance Verifications
If you have any questions, please do not hesitate to contact us: [email protected].