CBSA 2023 Trade Verification List
The Canada Border Services Agency (CBSA) has released the verification priority list for July 2023. This post gives an overview of verifications, their importance to importers, trade compliance, and tips for importers to stay compliant.
CBSA Targeted Verification and Compliance
The CBSA checks if commercial goods follow trade rules by doing random and targeted checks. The government of Canada sets priorities for these verifications based on risk, with new targets added throughout the year.
Pre and post-release assessments evaluate three main components of compliant importing among other details:
- Tariff Classification: Appropriate application of HS codes.
- Valuation: Correct application of the 6 methods of valuation to ensure the correct payment of duties and taxes on the goods.
- Origin: Accurate application of origin rules in accordance with legislative requirements.
CBSA issues the following communications to importers, notifying them of CBSA intervention:
- Trade Advisory Notice (TAN): A 'nudge' indicating a potential area of non-compliance. This letter serves as a request for the importer to review the declaration in question but carries no monetary assessment.
- Compliance Validation Letter (CVL): CBSA suspects an instance(s) of non-compliance and requests additional supporting information within 30 days.
- Directed Compliance Letter (DCL): CBSA knows an instance(s) of non-compliance and issues a monetary penalty.
2023 CBSA Trade Compliance Verification List
The Trade Verification Priority List is the second of two expected releases this year.
In 2023, the list of Verification Priorities includes tariff classification and valuation and excludes the origin of the listed commodities. CBSA also reminds us that this year, Belarus and Russia origin are not entitled to the Most-Favored-Nation (MFN) preferential rates of duty and are instead to use the General Tariff rate.
Tariff Classification:
Freezers and Other Freezing Equipment (NEW) - Harmonized System Number(s): Heading 84.18
Washers and Dryers (NEW) - Harmonized System Number(s): Headings 84.50 and 84.51
Spent Fowl - Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
LED Lamps (Round 2) - Harmonized System Number(s): Heading 85.39
Furniture for Non-Domestic Purposes (Round 4) - Harmonized System Number(s): Headings 94.01 and 94.03
Parts of Lamps (Round 4) - Harmonized System Number(s): Heading 94.05
Cellphone Cases (Round 3) - Harmonized System Number(s): Headings 39.26, 42.02 and 85.17
Pickled Vegetables - Harmonized System Number(s): Heading 20.01
Parts of Machines and Mechanical Appliances - Harmonized System Number(s): Heading 84.79
Bicycle Parts (Round 3) - Harmonized System Number(s): Heading 87.14
Parts for Use with Machinery of Chapter 84 (Round 3) - 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:
Apparel (Round 4) - Harmonized System Number(s): Chapters 61 and 62, with an emphasis on assists
Origin:
There are no active origin verification priorities currently.
Ways To Practice Trade Compliance
When it comes to compliance, knowledge is key. Here are some suggestions to assist you in maintaining an excellent importing relationship with Customs:
- Ensure Accurate Customs Declarations: Importers must ensure that they provide accurate information to Customs and in compliance with the Customs Act. This includes the origin, tariff classification, valuation, and other relevant areas.
- Review and Resolve Issues Once Found: Even the most compliant importer, with the most accurate customs broker, can identify inaccuracies. We recommend that all importers review declarations made on their behalf. Post-entry corrections must be made within 90 days of establishing Reason to Believe.
- Practice Excellent Record Keeping: Customs can audit imports up to seven years after crossing the border. Importers should have records of all their imports filed by the customs transaction number.
Our Trade Advisory experts can help you understand how this release could affect your imports. They can also assist you with a preliminary review, internal audit, or a CBSA audit.
