What are Trade Compliance Audits?

Importers and exporters are responsible for reporting all information on their imported/exported shipments to the Canada Border Services Agency (CBSA). To ensure compliance with reporting requirements, the CBSA conducts audits either randomly or by targeting specific products.

CBSA conducts audits randomly throughout the year to assess voluntary compliance by Canadian importers and exporters. On the other hand, targeted audits are risk-based, with specific products identified as audit targets in January and July of each year. 

When a product is targeted for a risk-based assessment, it is added to CBSA’s “Verification Priorities” list. During an audit, CBSA assesses these goods based on tariff classification, valuation, origin, or free trade certification. Several rounds of verification may be conducted if non-compliance for a specific item is high. 

For your convenience we have created a current list of CBSA’s latest trade compliance audit targets: 
 

  Trade Compliance Audit Targets July 2021

What To Do If Selected for Audit

There are many factors that could determine whether your 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 (709) 726-7596 or [email protected] immediately if your company receives notification of a CBSA 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.

We Can Help

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

In the meantime, if you have any questions or concerns regarding trade compliance audits or your import/export activities, please contact us at (709) 726-7596 or [email protected].

We offer a full range of Customs Brokerage and Customs Consulting services to assist with all of your international trade and logistics needs.

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