CBSA 2023 Trade Verification List
13
Jan
'
23

CBSA 2023 Trade Verification List

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The Canada Border Services Agency (CBSA) has released the verification priority list for January 2023. Today’s post will provide an overview of the list of verifications, their importance to Importers, trade compliance, and tips on how Importers can remain compliant.

The Trade Verification Priority List 

The Trade Verification Priority List is the first of two expected releases this year. The CBSA aims to monitor the extent to which commercial goods are trade compliant by conducting random and targeted verifications and issuing verification priorities as mentioned by the Government of Canada. 

What Does The CBSA Verification Priorities List Include? 

Every year the CBSA releases and updates the CBSA targeted verifications which can carry over from year to year. In 2023, the list of current Verification Priorities does not include verification properties under Origin. This year the CBSA has also reminded all Importers that “Belarus and Russia origin goods are assessed at the General Tariff rate of duty, and are not entitled to the Most-Favoured-Nation (MFN) preferential rates of duty.

The Tariff Classification:

Spent Fowl - Harmonized System Number(s): Headings 02.07, 16.01 and 16.02

LED Lamps - Harmonized System Number(s): Heading 85.39

Furniture for Non-Domestic Purposes - Harmonized System Number(s): Headings 94.01 and 94.03

Batteries - Harmonized System Number(s): Heading 85.06

Footwear ($30 or more per pair) - Harmonized System Number(s): Heading 64.03

Parts of Lamps - Harmonized System Number(s): Heading 94.05

Cellphone Cases - Harmonized System Number(s): Headings 39.26, 42.02 and 85.17

Pickled Vegetables - Harmonized System Number(s): Heading 20.01

Gloves - Harmonized System Number(s): Headings 39.26 and 42.03

Bags - Harmonized System Number(s): Heading 42.02

Other Mountings and Fittings Suitable for Furniture - Harmonized System Number(s): Heading 83.02

Air Heaters and Hot Air Distributors - Harmonized System Number(s): Heading 73.22

Flashlights and Miners’ Safety Lamps - Harmonized System Number(s): Heading 85.13

Parts of Machines and Mechanical Appliances - Harmonized System Number(s): Heading 84.79

Bicycle Parts - Harmonized System Number(s): Heading 87.14

Parts for Use with Machinery of Chapter 84 - Harmonized System Number(s): Heading 84.31

Indicator Panels and Light-Emitting Diodes (LED) - Harmonized System Number(s): Heading 85.31 and 84.41

Safety Headgear (Round 5) - Harmonized System Number(s): Subheading 6506.10

Disposable and Protective Gloves (Round 5) - Harmonized System Number(s): Subheadings 3926.20 and 4015.19

Valuation Priorities Are:

Apparel - Harmonized System Number(s): Chapters 61 and 62, with an emphasis on assists

Why Is The CBSA Verification Priorities List Important For Importers? 

Importers who intend to import goods into Canada must ensure their commodities comply with Canada's laws. The verification priorities list provides importers with specific information about goods that the CBSA has identified as high risk for incorrect import declarations. 

The list aims to guide Importers on the commodities targeted by CBSA and the practices you, as an Importer of record, need to follow. Products on the verification list are targeted for post-importation audits. Hence, Importers must ensure they have detailed, specific information about their imports to provide this to CBSA when requested. It is important to remember that CBSA also performs random post-importation audits, so it is not only the products on the verification list that you, the Importer, need to have detailed information about. Should Importers fail to make corrections to entries identified by the CBSA as being incorrect, penalties can be assessed under the Administrative Monetary Penalty System (AMPS).

AMPS | How Would This Affect Your Bottom Line?

Sometimes, an Importer could identify inaccurate information within their declarations after they have been submitted to the CBSA. When inaccurate Origins, Tariff Classifications and/or Value for Duty are identified, in most circumstances, Importers are obliged to file corrections within 90 days of their Reason to Believe the declaration needs to be corrected.  

What Is Reason To Believe?

Ensuring that Import declarations are correct is a requirement for all Importers and will reduce or negate the application of penalties for non-compliance. 

Importers should use the CBSA verification priorities list to assess their levels of compliance which can be done through internal test compliance audits, ensuring that everyone in your supply chain communicates effectively to avoid non-compliance. Remember, the Importer of record is ultimately liable for ensuring that their imports are compliant and will be held responsible for paying penalties, duties, and taxes. 

FAQ About Importer Record-Keeping Responsibilities In Canada 

This allows Importers to plan on importing to ensure there is less risk of underpaid or overpaid duties and penalties for not importing compliantly. 

The Importance Of Trade Compliance 

The CBSA is responsible for ensuring that any imports coming into Canada comply with the laws and regulations that protect Canadians' environment, economy, and health. 

Any supply chain operating efficiently in moving goods across borders requires trade compliance. Businesses open the gates of endless delays, penalties, and possible seizure of goods, which many companies aim to mitigate through Trade Compliance.

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By complying with trade laws and regulations, businesses can ensure that the correct documentation is obtained for declarations to ensure that entry is granted once your goods reach the border. 

The Ways To Remain Trade Compliant

Remaining compliant takes a little effort on the Importers' side. However, the CBSA provides ample information on the laws and regulations that could block your imports from entering Canada, making it easier to avoid the possibility of back-to-back audits and delays.

In this industry, information is critical. Here are just a few tips to help you remain compliant with every import you make into Canada: 

  1. Ensure that you accurately value your goods. Importers need to ensure that they determine the accurate CBSA valuation. The CBSA will recognize inaccuracies as the correct determination of the value of duty under the Canada Customs Act provides the proper duties and taxes needed to be paid. 
  1. Importers should always stay up to date. The CBSA and Canadian government enforce and change regulations throughout the year, which is why it is essential that Importers stay up to date and continuously check that their imports comply with new rules and verifications. This will prevent the risk of being welcomed to the border with penalties and the possible seizure of goods. 
Trade Is Tricky. The Trading Post Is Not. Subscribe to the Trading Post.
  1. Keep all records. Importers should keep a comprehensive list of all their imports, as they could get audited years after their goods arrive in Canada. Customs can contact you for further examinations and information years later. The better Importers are at maintaining records and complying, the less of a hassle audits will be if the time comes, and the less likelihood of your shipments getting pulled up for audit by Customs. 

    Pro-Tip: Cross reference your imports record with the customs transaction number because this is the number CBSA will use to request documents.

For help understanding what the impacts this release could have on your imports, or whether you need assistance with a preliminary review, internal audit, or an actual audit-our Trade Advisory experts can help you put the puzzles together.

PCB Trade Advisor
Disclaimer: While reading, kindly note the date of this blog. At PCB we do our due diligence to write on the most relevant topic every week and naturally content may become dated as developments in a certain program/topic occur. For this reason, we greatly appreciate your readership and hope you continue reading with the posting date in mind. For the latest information on this topic please use our website's search function, or better yet, subscribe to our "Trading Post" newsletter to receive these updates directly to your inbox.
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About the Author
Gloria Terhaar
CCS (CA/US), CTCS, CBSA Prof. Designate

Gloria Terhaar began her career in Canadian customs brokerage 2007. She currently works in our Canadian division as a Trade Compliance Supervisor and Regulatory Compliance Specialist. Gloria has extensive experience in all aspects of documentation and regulatory requirements as they relate to importing products into Canada. Gloria is often called upon to train industry with some recent talks for MNP, the Surrey Board of Trade, TFO Canada and the BC Produce Marketing Association. In 2018, Gloria also participated in the Canadian Produce Marketing Association and the Canadian Horticultural Council advocacy event "Fall Harvest" in Ottawa where she participated in advocacy efforts for the Canadian produce industry.

While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.