The CBSA manages compliance with the Tariff Classification, Tariff Treatment, Valuation, and Origin programs using the following two post-release verification processes: 1) Random Verifications; and 2) Targeted Priorities. 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; • [...]
The CBSA manages compliance with the Tariff Classification, Tariff Treatment, Valuation, and Origin programs using the following two post-release verification processes: 1) Random Verifications; and 2) Targeted Priorities.
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.
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. The current targeted priorities are:
Tariff Classification HS Number(s)
1.Pet Toys | 9503.00.90
2.Steel T-Posts | 7308.40.00.90
3.Fresh Cut Flowers | 0603.19.00
4.Safety Headgear | 6506.10.10.90
5.Wheel Rims and Spokes | 8714.92.00
6.Other Food Preparations | 2106.90.95
7.Dextrins and Other Modified Starches | 3505.10.90
8.Tariff Item 9948.00.00 (Televisions and Other Consumer Goods) | 9948.00.00
9. Coconut Milk | 1106.30.00; 2008.19.90 and 2106.90.10.20 Continue reading »
Canada has established a self-reporting and self-assessing customs scheme. To some extent, self-reporting and self-assessing schemes rely upon the honesty and integrity of the declarations provided by importers and exporters. However, officers conduct verifications and audits to: (a) audit or verify compliance; (b) correct non-compliance; (c) assess or re-assess duties, taxes and charges; and (d) [...]
Canada has established a self-reporting and self-assessing customs scheme. To some extent, self-reporting and self-assessing schemes rely upon the honesty and integrity of the declarations provided by importers and exporters. However, officers conduct verifications and audits to:
(a) audit or verify compliance;
(b) correct non-compliance;
(c) assess or re-assess duties, taxes and charges; and
(d) assess interest, penalties and other consequences for non-compliance.
A customs verification or audit can be a confusing, difficult and time-consuming experience in the absence of compliance planning. Disorganized, incomplete or inaccurate responses to customs authorities may lead to findings of non-compliance and assessments of duty, penalties and interest. With compliance planning, an importer or exporter may stand a better chance of obtaining a successful verification or audit result. Some steps that importers or exporters can take in order to plan for verification and audit compliance include the following:
(a) Ensure that a business representative is responsible for receiving and responding to correspondence, verification letters, Detailed Adjustment Statements and other similar customs related documents in a timely way. Many audits result in the assessment of Administrative Monetary Penalties for failure to respond to the requests issued by CBSA officers.
(b) If a CBSA verification officer conducts a verification or an auditor conducts an audit, ensure that only one person is responsible for communicating with the verification officer or auditor. Also ensure that all other relevant personnel are advised of the purpose of the verification or audit and the identity of the business point person.
(c) Ensure that the business leaders understand the consequences for failing to respond to CBSA correspondence, verification questionnaires, Detailed Adjustment Statements and the like.
(d) Obtain the resources (internal staff, customs brokers, consultants, legal counsel) necessary to deal with requests that are issued by the CBSA. For example, the CBSA may issue a verification questionnaire relating to 25 sample transactions.
The CBSA officer may request relevant supply documents including the purchase orders and B3 Canada Customs Coding Forms. The CBSA officer may also request related documents such as royalty agreements in order to verify whether or not royalty payments should be included in the value for duty. It may be necessary to obtain assistance from persons within the verification team in order to comply with the request.
The foregoing is an extract from a series of articles outlining the elements necessary in planning an effective customs compliance program, written by Daniel Kiselbach that appeared in the I.E. Now trade publication.
Daniel Kiselbach is a partner in the International Trade, Customs and Commodity Tax Group of Miller Thomson LLP in Vancouver. He can be reached by phone at (604) 643-1263 or by email at dkiselbach@millerthomson.com.
International trade compliance specialists in Canada have a new designation that recognizes their expertise and experience. The CTCS (Certified Trade Compliance Specialist), a designation launched by the Canadian Society of Customs Brokers (CSCB) and directed by an Advisory Board of highly respected trade lawyers, importers, trade consultants and customs brokers, is specifically designed for those [...]
International trade compliance specialists in Canada have a new designation that recognizes their expertise and experience. The CTCS (Certified Trade Compliance Specialist), a designation launched by the Canadian Society of Customs Brokers (CSCB) and directed by an Advisory Board of highly respected trade lawyers, importers, trade consultants and customs brokers, is specifically designed for those individuals who have chosen international trade compliance as a career.
Those wishing to qualify for the CTCS who have considerable work experience and/or educational background in trade compliance and who may be wondering if their particular professional experience and education will be recognized need not be concerned. The CSCB stresses that steps have been taken to open the door for those individuals.
“The CTCS designation recognizes prior learning and continuing professional development, and allows those who are eligible to be “grandfathered” into the CTCS designation,” said Carol West, president, CSCB. “This means that you may acquire the CTCS designation without having to enroll in the CTCS program of study, but only until March 31, 2012.”
In order to be grandfathered, you must comply with specific requirements identified by the CSCB under one of four groups which are clearly outlined in the application form. In addition, applicants to the grandfathering provision must:
• have 10 years of experience in trade compliance;
• provide applicable documentary evidence of eligibility as stipulated in one of the four groups unless that evidence is already held by the CSCB;
• pass a timed online assessment, as described below; and
• provide a résumé.
Once the application has been reviewed and it has been determined that the applicant meets the criteria, an online assessment is scheduled. The assessment will questions relating to the core CTCS modules of Valuation/Transfer Pricing; Classification; Compliance Verification; Appeals, Redress and Voluntary Disclosure; Trade Agreements; Export Control; GST/HST/Excise Tax; and Freight and Documentation. Applicants will be granted two attempts at the online assessment. There is a fee for the grandfathering application.
“The aim is to ensure that those receiving the designation are well-versed in customs compliance regardless of whether they are employed by an importer or exporter, in the field of logistics or as consultants,” explained West. “The grandfathering option recognizes the knowledge and experience of those who have been working in the field, and have gained the special skills that are unique to international trade compliance.”
If the requirements for grandfathering are met, applicants will be awarded the CTCS designation by the CSCB. Once you become a CTCS designate through grandfathering, maintenance of the designation requires earning of professional development credits and payment of an annual fee. Click here to learn more.
