Trade Compliance

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Canada Customs Updates Trade Compliance Verification Targets for 2018

Posted January 11, 2018


The Canada Border Services Agency has published an amended list of its current verification priorities as of January 2018, to update the status of various goods under ongoing review and include several new additions.

Customs Audit

Designed to measure compliance rates and revenue loss, the CBSA’s targeted verification priorities are determined through a risk-based, “evergreen” process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years.

New additions to the list of goods which are currently subject to its verification priorities include the following:

Mineral Waters and Aerated Waters

Harmonized System Classification: Heading 22.01
The risk identified is that imported goods could be incorrectly classified as mineral waters and aerated waters within Heading 22.01, instead of being properly classified elsewhere within the same chapter, and potentially be subject to a duty rate up to 11%.

Gloves

Harmonized System Classification: Headings 39.26 and 42.03
The risk identified is that imported goods could be incorrectly classified as gloves within Headings 39.26 and 42.03, instead of being properly classified within Chapter 61 or 62, and potentially be subject to higher duty rates up to 18%.

Pebbles, Limestone and Granules

Harmonized System Classification: Heading 25.17
The risk identified is that imported goods could be incorrectly classified as pebbles, limestone and granules within Heading 25.17, instead of being properly classified within Heading 68.02, and potentially be subject to a duty rate of 6.5%.

Spent Fowl

Harmonized System Classification: Headings 02.07, 16.01 and 16.02
The risk identified is that imported goods could be incorrectly classified as spent fowl within Headings 02.07, 16.01 and 16.02, instead of being properly classified under tariff items subject to tariff rate quotas (TRQs) within the same chapters, and potentially be subject to very high duty rates.

Bags

Harmonized System Classification: Heading 42.02
The risk identified is that imported goods could be incorrectly classified as bags within Heading 42.02, instead of being properly classified elsewhere within the same heading, and potentially be subject to duty rates up to 11%.

A further addition to the list concerns Import Permit Numbers, where the risk identified is that imported goods subject to tariff rate quotas (TRQs) under Canada’s supply management system could be classified under “within access commitment” tariff items within Chapter 2 (meat of bovine animals and poultry) and Chapter 4 (dairy products), without the required import permit number on the declaration. TRQ goods imported without the required import permit number are properly classified under “over access commitment” tariff items and are subject to very high duty rates.