The Canada Border Services Agency (CBSA) publicly releases a semi-annual list of all of its active compliance verification priorities, in the interest of transparency and the promotion of self-compliance. It recently published its trade verification targets for the second half of 2014. While new targets have been added, many continue from the past. The 11 new items on the list range from batteries to certain machinery.
Types of post-release verification processes:
The CBSA manages compliance with the Tariff Classification, Tariff Treatment, Valuation, and Origin programs using the following two post-release verification processes:
- Random Verifications
- Targeted Priorities
1. 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;
- Establishing client service activities;
- Revenue assessment; and
- Promoting voluntary compliance.
2. Targeted Priorities
Targeted priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the fiscal year. Targeted priorities may also be carried over from previous years.
Trade Compliance Verifications ? July 2014
A summary of the current targeted priorities can be found below:
Tariff Classification (TC):HS Number(s)Fresh Cut Flowers0603.19.00Pickled Vegetables2001.90.90.91Curling Irons (Round 2)8516.32.10Spectacle Lenses9001.40.10 and 9001.50.10Furniture for Non-Domestic PurposesVarious goods of Heading 94.01 and 94.03Palm Oil1511.90.10 and 1511.90.20Chemicals productVarious goods of Heading 38.08Safety Headgear (Round 2)6506.10.10.90Seaweed (Round 2)1212.21.00 and 1212.29.00Dextrins and Other Modified Starches (Round 2)3505.10.90Disposable and Protective Gloves (Round 2)3926.20.10 and 4015.19.10Wheel Rims and Spokes (Round 2)8714.92.00Coconut Milk from Asian Countries (Round 2)1106.30.00, 2008.19.90 and 2220.127.116.11Batteries (new)8506.10.10 and 8506.50.10Gazebos (new)9406.00.90.20Apparel Samples (new)9936.00.00Bags of Polymers of Ethylene (new)3923.21.90Footwear Valued at $30 or More per Pair (new)6403.59.20 and 6403.99.30Hair Extensions (new)6703.00.00Machinery for Public Works (new)8479.10.00Sacks and Bags under Tariff Item 9903.00.00 (new)3923.21.90, 6305.32.00 and 6305.33.00Special Purpose Motor Vehicles (new)8705.90.90.90Polyurethanes in Primary Forms (new)3909.50.00ValuationHS Number(s)Fresh Cut Flowers0603.19.00ApparelVarious goods of Chapters 61 and 62FootwearVarious goods of Chapter 64Yachts for Pleasure or SportVarious goods of Heading 89.03Preparations and Pastrycooks? ProductsVarious goods of Chapter 19OriginHS Number(s)Bedding and DraperyVarious goods of Heading 63.01, 63.02 and 63.03Mattress UpholsteryVarious goods of Chapters 54,55 and 60Cotton Pants6203.42T-ShirtsHeading 61.09Jewelry (new)7113.11.90, 7113.19.90 and 7113.20.90
As your customs broker, we make every effort to provide you with the right tools and information to ensure that your company is as proactive as possible with the CBSA. In this way, we hope to help lessen your exposure to any penalties or fines. As part of our ongoing efforts, we offer a number of Trade Compliance Seminars and Webinars throughout the year on trade compliance and customs audit among other subjects.
Trade Compliance Audit Assistance:
Should your company get selected for a Customs audit, Pacific Customs Brokers can help. Our Trade Compliance Specialists will work with you to guide your business through the audit process and avoid incurring further penalties.
Our trade compliance consulting services include but are not limited to:
- Thorough HS database review with ongoing updates
- Current industry training and education to review transactions completed by customs brokers thereby minimizing errors
- Experienced counsel on valuation and origins
- Strategic advice on withstanding a Customs audit
- Firm support through the challenges of the audit process
Do you have questions about CBSA?s trade compliance verification priorities? Use the comments section below to leave us your thoughts or email Ask Your Broker .