What is the CBSA Trade Verification Program?
The CBSA conducts trade compliance verifications to:
· Confirm the accuracy of tariff classification, valuation, and origin declarations
· Ensure proper application of trade agreements and duty relief programs
·Identify and correct non-compliance to protect government revenue
Verifications are conducted in two ways:
- Random Verifications: Used to assess general compliance levels and estimate potential revenue loss.
- Targeted Verifications: Based on risk assessments and trade trends. These are updated throughout the year and may carry over from previous years.
In addition to formal verifications, the CBSA uses three compliance intervention tools to address varying levels of potential non-compliance:
- Trade Advisory Notice (TAN)
A non-penal letter encouraging importers to review a specific declaration. Includes educational resources to support voluntary compliance. No monetary assessment is issued.
- Compliance Validation Letter (CVL)
Sent when CBSA suspects non-compliance. Importers must respond with supporting documentation within 30 days. May result in a monetary assessment if non-compliance is confirmed.
- Directed Compliance Letter (DCL)
Issued when non-compliance is confirmed. Includes a monetary assessment and outlines the infraction. Subject to recourse provisions under the Customs Act.
New Compliance Priorities for 2025
CBSA has introduced several new areas of focus this year, reflecting evolving trade risks and enforcement needs: This is a pivotal change to CBSA compliance management.
· Tariff Rate Quotas & Classification of supply-managed goods
· Frozen Desserts containing ≥5% dairy content
· GST & Excise Duties/Taxes:
· Vaping products subject to excise
– Origin Verifications under:
- CETA (Canada-EU)
- CUKTCA (Canada-UK)
· Duties Relief Program (DRP) compliance
· Licensee Verifications for supply-managed imports
· Surtax Orders:
- China (2024): Electric Vehicles, Steel & Aluminum
- U.S. (2025): Steel, Aluminum, and Motor Vehicles
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