Trade Compliance Verification

Trade Compliance Priorities Updated: July 2024 – Information c/o Canada Border Services Agency

What are Trade Compliance Customs Audits?

Trade compliance refers to importers and exporters meeting the rules and regulations governing the movement of commercial goods into and from Canada. Importers and exporters are responsible for reporting accurate information on their shipments to the Canada Border Services Agency (CBSA).

To be trade compliant through CBSA’s regulations, the importing community must meet all of the requirements governing the accounting of commercial goods imported into Canada, including, but not limited to:

• classifying their commercial goods under the appropriate tariff classification
• accurately declaring the origin and value of the goods, in accordance with legislative requirements
• paying the appropriate duties and taxes on the goods

To ensure compliance with reporting requirements, the CBSA monitors the extent to which commercial goods are trade compliant by conducting customs audits either randomly or by targeting specific product verifications and by issuing verification priorities.

Most Recent Trade Compliance Audit Targets

Each January & July specified commodities are identified for audit and are made public by the CBSA. Certain products are chosen for review of tariff classification, while others are based on validation of their values or origins & free trade certification. PF Collins has compiled the most recent audit targets and created an accessible and easy-to-reference PDF Guide to download:

CARM as a Compliance Tool

In addition to the priorities above, the CBSA will use the CARM (CBSA Assessment Revenue Management) system to validate duties and taxes and conduct compliance interventions to address areas of suspected non-compliance.

PF Collins has a knowledgeable team dedicated to helping companies navigate CARM. If you require more information or are looking for assistance, please visit our CARM Resource Page.

What To Do If Selected for an Audit

Many factors determine if imported products are selected for audit. For instance, your product may just simply be on the latest list of audit targets.

Whatever the reason, please contact us at 1-800-763-2255 or send us an email immediately if your company receives notification of a customs audit. We can advise you as to how best to proceed and guide you through the process. However, in order for us to act on your behalf during your audit, you will have to sign and submit the Letter of Authorization accompanying CBSA’s audit package.

Customs audits have been steadily increasing in recent years. Therefore, we recommend importers and exporters establish a compliance plan to ensure accurate records are maintained. We offer several services to assist in creating a compliance plan and minimizing the risk of CBSA fines and penalties. 

Further Resources

The CBSA has provided the following resources in regard to Trade Compliance:

• Customs Notice 22-02: Order withdrawing the Most-Favoured-Nation status from Russia and Belarus
• Memorandum D11-4-3: Rules of Origin Respecting the Most-Favoured-Nation Tariff
• Historical Verification Priorities
• Memorandum D11-6-8: Verification of Origin (Non-free Trade Agreements), Tariff Classification, and Value for Duty of Imported Goods
• CBSA Service Standards: Fiscal Year 2024 to 2025

You may also contact CBSA if you have any questions regarding the trade compliance audit list at the following email: cbsa.trci-erecio.asfc@cbsa-asfc.gc.ca