Trade Compliance Customs Audits

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 ensure compliance with reporting requirements, the CBSA conducts customs audits either randomly or by targeting specific products.

CBSA conducts customs audits randomly throughout the year to assess voluntary compliance by Canadian importers and exporters. Meanwhile, targeted audits are risk-based, with specific products identified for audit 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 January 2022

What To Do If Selected for 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 (709) 726-7596 or consulting@pfcollins.com 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.

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 consulting@pfcollins.com.

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