As a result of the 2017 Spring Auditor General’s Report, Canada Border Services Agency (CBSA) is stepping up their border enforcement measures and increasing compliance audits on Importers.

Recommendations to the CBSA from the Auditor General include:

• Collecting proper descriptions of imported goods at the time of entry;
• Increasing the amount of monetary penalties;
• Reducing the time period in which an Importer may request a refund or amend an entry;
• New mechanisms to increase the effectiveness of enforcement on controlled goods;
• Adjustments to the Duties Relief Program.

To view the full report, please visit Report 2 – Customs Duties on the Office of the Auditor General of Canada’s website.

With this announcement, it is a good time to review your import practices and ensure your vendors are providing accurate and complete information and data elements to your Customs Broker. As an Importer, you are 100% responsible for all information declared to CBSA regarding your shipments.

Compliance Audits by the Numbers

In 2016, the CBSA assessed almost $7,500,000 in penalties under the Administrative Monetary Penalty System (AMPS). Moreover, Importers received 86% of these penalties. As the level of CBSA enforcement increases, the number of penalties and dollar amounts will also increase.

The post CBSA Increasing Compliance Audits on Importers first appeared on PF Collins International Trade Solutions.

Importers and exporters are ultimately responsible for ensuring compliance with import/export laws and regulations related to their shipments and declarations made to the Canada Border Services Agency (CBSA).

CBSA manages trade compliance on Tariff Classification, Valuation and Origin programs by performing audits either randomly or through risk-based verification priorities. Targeted goods may be carried over from previous years or newly added throughout the year.

A full list of the targeted goods on the verification priority audit schedule can be found here. The full listing with findings may also be found on CBSA’s website.

If you have already been contacted by CBSA concerning an audit, PF Collins can help by representing your company throughout the process, increasing your chances of obtaining a favourable outcome. We can also assist in helping you establish a customs compliance program to ensure maximum compliance with CBSA’s trade programs, as well as minimized costs associated with audits.

The post Importing or Exporting? What You Should Know About Customs Audits first appeared on PF Collins International Trade Solutions.