Trade Compliance Verifications

January 2016

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The CBSA manages trade compliance with the Tariff Classification, Valuation, and Origin programs using the following two post-release verification processes:

  1. Random verifications
  2. Verification priorities

Random verifications

Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including:

  • Risk assessment;
  • Revenue assessment; and
  • Promoting voluntary compliance.

Verification priorities

Targeted verification priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years. The current verification priorities are:

Tariff Classification

Curling Irons (Round 2)
  • The risk identified is that goods may be misclassified as curling irons, which are duty-free. However, similar goods, such as flat irons, are properly classified under tariff item 8516.32.90, which attracts a duty rate of 6.5%.
  • This verification priority was released in June 2012 and $371K was assessed in revenue, as 12 out of 17 cases were found to be in error.
  • A second round of verifications was released in February 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    36 30 18 60% $19,205 $38,592 $1,500 $59,297
  • The results show that the goods that were found to be misclassified were properly re-classified under tariff item 8516.32.90.

Harmonized System Number(s):
8516.32.10

Spectacle Lenses (Round 2)
  • The risk identified is that spectacle lenses may be misclassified within Heading 90.01, which is duty-free for certain goods, and may be properly classified under other tariff items within the same heading as "other" products, which attract a duty rate of 2%.
  • This verification priority was released in January 2013 and $776K was assessed in revenue, as 8 out of 10 cases were found to be in error.
  • A second round of verifications was released in November 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    19 8 4 50% $3,428 $4,590 $150 $8,168
  • The results show that the goods that were found to be misclassified were properly re-classified under tariff item 9001.50.90 of the Customs Tariff.

Harmonized System Number(s):
9001.40.10 and 9001.50.10

Furniture for Non-Domestic Purposes
  • Headings 94.01 (Seats) and 94.03 (Other furniture and parts thereof) classify furniture for domestic purposes or other furniture for non-domestic purposes. The risk identified is that goods may be misclassified as furniture for non-domestic purposes, which is duty-free, instead of furniture for domestic purposes, which attracts a duty rate of up to 9.5%.
  • This verification priority was released in January 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    25 18 8 44% $81,117 $573,061 $450 $654,628
  • The results show that the goods that were found to be misclassified were properly re-classified under furniture for domestic purposes.

Harmonized System Number(s):
Various goods of Headings 94.01 and 94.03

Palm Oil (Round 2)
  • The risk identified is that crude palm oil of tariff item 1511.10.00 and other palm oils of tariff item 1511.90.90, which are dutiable, could be misclassified under other tariff items that are duty-free.
  • This verification priority was released in May 2013 and $151K was assessed in revenue, as 5 out of 9 cases were found to be in error.
  • A second round of verifications was released in November 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    8 7 4 57% $20,157 $31,398 $150 $51,705
  • The results show that the goods that were found to be misclassified were properly re-classified as shortening under tariff item 1517.90.71 of the Customs Tariff.

Harmonized System Number(s):
1511.90.10 and 1511.90.20

Safety Headgear (Round 2)
  • The risk identified is that safety headgear could be incorrectly classified under duty-free tariff items and should be classified as other safety headgear under tariff item 6506.10.90, which attracts a duty rate from 5% to 8.5%.
  • This verification priority was released in December 2011 and $126K was assessed in revenue, as 8 out of 8 cases were found to be in error.
  • A second round of verifications was released in May 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    20 19 14 74% $22,002 $74,917 $27,850 $124,769
  • The results show that the goods that were found to be misclassified were properly re-classified under tariff item 6506.10.90 of the Customs Tariff.

Harmonized System Number(s):
6506.10.10.90

Seaweed (Round 2)
  • The risk identified is that prepared seaweed, which attracts a duty rate of 6%, could be misclassified as unprepared seaweed, which is duty-free.
  • This verification priority was released in September 2011 and $257K was assessed in revenue, as 6 out of 7 cases were found to be in error.
  • A second round of verifications was released in May 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    39 38 31 82% $64,293 $151,932 $10,350 $226,575
  • The results show that the goods that were found to be misclassified were properly re-classified under classification number 2008.99.90.99 of the Customs Tariff.

Harmonized System Number(s):
1212.21.00 and 1212.29.00

Dextrins and Other Modified Starches (Round 3)
  • The risk identified is that goods could be incorrectly classified as “dextrins and other modified starches”, which are duty-free, whereas they could be properly classified as “other sugars” of Heading 17.02. The duty rates under Heading 17.02 range from 0% to 11%.
  • This verification priority was released in March 2012 and $414K was assessed in revenue, as 7 out of 11 cases were found to be in error.
  • A second round of verifications was released in May 2013 and $377K was assessed in revenue, as 23 out of 32 cases were found to be in error.
  • A third round of verifications was released in June 2015. Results are not yet available.
  • The results show that the goods that were found to be misclassified were properly re-classified under Headings 17.02, 21.06, 35.05 and 38.24 of the Customs Tariff.

Harmonized System Number(s):
3505.10.90

Disposable and Protective Gloves (Round 2)
  • The risk identified is that disposable and protective gloves, which are duty-free if the gloves qualify for specific end-uses, may be reclassified under tariff items 3926.20.91 or 4015.19.90, which attract a duty rate of 6.5% and 15.5% respectively.
  • This verification priority was released in October 2012 and $810K was assessed in revenue, as 13 out of 16 cases were found to be in error.
  • A second round of verifications was released in July 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    26 23 21 91% $51,318 $278,987 $6,000 $336,305
  • The results show that the goods that were found to be misclassified were properly re-classified under tariff items 3926.20.91 and 4015.19.90, and under Headings 48.18, 62.10 and 63.07 of the Customs Tariff.

Harmonized System Number(s):
3926.20.10 and 4015.19.10

Wheel Rims and Spokes (Round 2)
  • The risk identified is a potential misclassification of goods under tariff item 8714.92.00, which is duty-free and applies only to wheel rims and spokes for vehicles of Headings 87.11 to 87.13 (e.g., motorcycles, bicycles, and carriages for disabled persons). It was suspected that some goods should have been classified under tariff item 8708.70.19 as road wheels of motor vehicles of Headings 87.01 to 87.05, which attracts a duty rate of 6%.
  • This verification priority was released in February 2012 and $153K was assessed in revenue, as 8 out of 9 cases were found to be in error.
  • A second round of verifications was released in August 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    12 11 11 100% $11,554 $15,654 $300 $27,508
  • The results confirmed that the majority of the goods that were verified were in fact for use on motor vehicles.

Harmonized System Number(s):
8714.92.00

Coconut Milk from Asian Countries (Round 2)
  • The risk identified is that full cream or whole milk powder, properly classified as dairy products under Heading 04.02, may be misclassified as coconut powder or milk under various tariff items. Many tariff items of Heading 04.02 contain “over access commitment” duty rates as high as 295.5%.
  • This verification priority was released in May 2012 and $160K was assessed in revenue, as 7 out of 9 cases were found to be in error.
  • A second round of verifications was released in July 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    33 31 12 39% $13,642 $23,383 $750 $37,775
  • The results show that the goods that were found to be misclassified were properly re-classified under Chapters 4, 11, 12, 19, 20, 21 and 22 of the Customs Tariff.

Harmonized System Number(s):
1106.30.00, 2008.19.90 and 2106.90.10.90

Batteries
  • The risk identified is that batteries may be misclassified under subheadings that are duty-free, when the batteries should be properly classified under other tariff items within those subheadings, which attract a duty rate of 7%.
  • This verification priority was released in November 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    7 6 5 83% $5,503 $6,205 $150 $11,858
  • The results show that the goods that were found to be misclassified were properly re-classified under tariff item 8506.10.90 of the Customs Tariff.

Harmonized System Number(s):
8506.10.10 and 8506.50.10

Gazebos (Round 2)
  • The risk identified is that gazebos could be misclassified as pre-fabricated buildings, which attracts a duty rate of 6% under the Most-Favoured-Nation Tariff (MFN) and is duty-free under the General Preferential Tariff (GPT). The goods may be properly classified as structures of aluminum under tariff item 7610.90.90, which attracts a duty rate of 6.5% (MFN) and 5% (GPT).
  • This verification priority was released in November 2013 and $613K was assessed in revenue, as 4 out of 4 cases were found to be in error.
  • A second round of verifications was released in August 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    29 27 13 48% $58,715 $42,646 $0 $101,361
  • The verifications confirmed the suspected misclassification.

Harmonized System Number(s):
9406.00.90.20

Apparel Samples
  • The risk identified is that apparel classified under conditional relief tariff item 9936.00.00, which is duty-free, may not comply with the usage conditions set out in this tariff item.  Duty rates for apparel range as high as 18%.
  • This verification priority was released in March 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    9 8 8 100% $13,111 $5,334 $1,350 $19,795
  • The results show that some of the goods that were verified did not qualify for the use of conditional relief tariff item 9936.00.00 of the Customs Tariff.

Harmonized System Number(s):
9936.00.00

Bags of Polymers of Ethylene
  • The risk identified is that bags of polymers of ethylene may be misclassified under tariff items that attract a duty rate of 6.5% under the Most-Favoured-Nation (MFN) or 3% under the General Preferential Tariff (GPT), but should instead be classified under Headings 42.02, 46.02 and 63.05, which attract duty rates as high as 18% under the MFN or 7% under the GPT.
  • This verification priority was released in March 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    18 17 3 18% $1,291 $46,321 $0 $47,612
  • The results show that most of the goods that were found to be misclassified were properly re-classified under Heading 42.02 of the Customs Tariff.

Harmonized System Number(s):
3923.21.90

Footwear ($30 or more per pair)
  • The risk identified is that footwear subject to a duty rate of 18% could be misclassified under other related tariff items, such as women’s footwear valued at $30 or more per pair, which attracts a duty rate of 11%.
  • This verification priority was released in March 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    10 8 8 100% $17,428 $286,168 $19,950 $323,546
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items of Heading 64.03 of the Customs Tariff.

Harmonized System Number(s):
6403.59.20 and 6403.99.30

Hair Extensions (Round 2)
  • The risk identified is that hair extensions could be misclassified under Heading 67.03, which is duty-free, instead of being properly classified under Heading 67.04 (e.g., wigs, false beards, etc.), which attracts a duty rate of 15.5%.
  • This verification priority was released in March 2014 and $1.2M was assessed in revenue, as 29 out of 32 cases were found to be in error.
  • A second round of verifications was released in November 2015. Results are not yet available.
  • The results show that the goods that were found to be misclassified were properly re-classified under Heading 67.04 of the Customs Tariff.

Harmonized System Number(s):
6703.00.00

Machinery for Public Works
  • The risk identified is that machinery could be misclassified as machinery for public works, building or the like, which is duty-free, instead of being properly classified under tariff item 8705.90.10, which focuses primarily on special purpose motor vehicles and attracts a duty rate of 6.1%.
  • This verification priority was released in March 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    10 8 0 0% $0 $0 $0 $0
  • The results show that the goods verified were properly classified as machinery for public works.

Harmonized System Number(s):
8479.10.00

Sacks and Bags under Tariff Item 9903.00.00
  • The risk identified is that sacks and bags classified under various tariff items and accounted for under conditional relief tariff item 9903.00.00, which is duty-free, may not comply with the usage conditions set out in this tariff item. The applicable duty rates range from 3% to 18%.
  • This verification priority was released in July 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    9 8 3 38% $49,716 $126,197 $1,950 $177,863
  • The results show that some of the goods verified did not qualify for the use of conditional relief tariff item 9903.00.00.

Harmonized System Number(s):
3923.21.90, 6305.32.00 and 6305.33.00

Special Purpose Motor Vehicles
  • The risk identified is that special purpose motor vehicles could be misclassified under duty-free tariff items instead of being properly classified under various tariff items of Heading 87.05, which attract a duty rate of 6.1% or 6.7%.
  • This verification priority was released in July 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    42 35 19 54% $117,033 $33,617 $1,200 $151,850
  • The results show that most of the goods that were found to be misclassified were properly re-classified under various dutiable tariff items of Heading 87.05 of the Customs Tariff.

Harmonized System Number(s):
8705.90.90.90

Polyurethanes in Primary Forms
  • The risk identified is that goods could be incorrectly classified under subheading 3909.50 (i.e. polyurethanes in primary forms), which is duty-free, whereas the goods may not be in a primary form and therefore should instead be classified in tariff items that are subject to a duty rate of 6.5%.
  • This verification priority was released in July 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    21 19 6 32% $11,841 $99,652 $150 $111,643
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items of Chapters 32, 35 and 38 of the Customs Tariff.

Harmonized System Number(s):
3909.50.00

Parts for Power Trains
  • The risk identified is that goods could be incorrectly classified within Heading 87.08, instead of being properly classified under tariff item 8708.99.15 (parts for power trains for the vehicles of Heading 87.03), which attracts a duty rate of 6%.
  • This verification priority was released in August 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    10 5 5 100% $0 $4,386 $750 $5,136
  • The results show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Heading 87.08 of the Customs Tariff.

Harmonized System Number(s):
Heading 87.08

Generating Sets
  • The risk identified is that generating sets could be incorrectly classified within Heading 85.02, instead of being properly classified elsewhere within the same position, and potentially be subject to a duty rate of 2%.
  • This verification priority was released in August 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    24 23 19 83% $89,171 $2,053 $1,800 $92,994
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items of Chapters 84 and 85 of the Customs Tariff.

Harmonized System Number(s):
Heading 85.02

Geophysical and Oceanographic Instruments
  • The risk identified is that various instruments could be incorrectly classified within Heading 90.15, whereas the accurate tariff items could potentially fall outside of Heading 90.15 and/or be subject to various duty rates depending on the appropriate classification that may be determined.
  • This verification priority was released in November 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    25 4 2 50% $1,889 $83,546 $300 $85,735
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 84, 85 and 90 of the Customs Tariff.

Harmonized System Number(s):
Heading 90.15

Cereals
  • The risk identified is that cereals could be incorrectly classified under Heading 10.08, whereas the accurate tariff items could potentially be subject to various duty rates depending on the appropriate classification that may be determined.
  • This verification priority was released in December 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    7 3 3 100% $4,816 $0 $0 $4,816
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 10, 11, 12 and 19.

Harmonized System Number(s):
Heading 10.08

Articles of Apparel and Clothing Accessories
  • The risk identified is that goods could be incorrectly classified within Heading 39.26, which attract lower duty rates, instead of being properly classified under tariff item 6210.40.90 (other men's or boys' garments) or 6210.50.90 (other women's or girls' garments), which are both subject to the significantly higher duty rate of 18%.
  • The issue is that clothing containing a layer of plastic, combined with textile fabric that is not considered as reinforcement to the plastic, should not be classified under Chapter 39.
  • This verification priority was released in December 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    134 44 14 32% $124,478 $189,287 $1,800 $315,565
  • The results show that the most of the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 61 and 62 of the Customs Tariff.

Harmonized System Number(s):
Heading 39.26

Bicycle Parts
  • The risk identified is that bicycle related goods could be incorrectly classified within Heading 87.14, instead of being properly classified elsewhere within the same Chapter, and potentially be subject to various duty rates up to 13%.
  • This verification priority was released in April 2015.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    68 12 8 67% $5,768 $20,247 $7,400 $33,415
  • The results show that the goods that were found to be misclassified were properly re-classified under many different Chapters, such as 40, 62, 73, 85, 87, 90 and many more, of the Customs Tariff.

Harmonized System Number(s):
Heading 87.14

Articles of Plastics
  • The risk identified is that articles of plastics could be incorrectly classified within Heading 39.26, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in April 2015.
  • Results are not yet available.

Harmonized System Number(s):
Subheading 3926.90

Articles of Iron or Steel
  • The risk identified is that articles of iron or steel could be incorrectly classified within Heading 73.26, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in May 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 73.26

Vices and Clamps
  • The risk identified is that vices and clamps could be incorrectly classified within Heading 82.05, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in June 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 82.05

Parts for Use with Machinery of Chapter 84
  • The risk identified is that parts for use with certain machinery of Chapter 84 could be incorrectly classified within Heading 84.31, instead of being properly classified under various tariff items, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in June 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 84.31

Tubes, Pipes and Hoses (new)
  •  The risk identified is that tubes, pipes and hoses could be incorrectly classified within Heading 39.17, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in September 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 39.17

Parts of Lamps (new)
  • The risk identified is that imported goods could be incorrectly classified as parts of lamps, within Heading 94.05, instead of being properly classified elsewhere within the same Heading, or under other Chapters, and potentially be subject to various duty rates.
  • This verification priority was released in September 2015.
  • Results are not yet available. 

Harmonized System Number(s):
Heading 94.05

Chemical Products (Round 2)
  • The risk identified is that there may be misclassification due to the significant duty difference for insecticides, fungicides, herbicides, etc., of Heading 38.08, depending on weight and package size of the imported product:
    • 3808.XX.10: In packages of a gross weight not exceeding 1.36 kg each (6.5% duty rate);
    • 3808.XX.20: In bulk or in packages of a gross weight exceeding 1.36 kg each (duty-free).
  • A first round of verifications for this priority was released in May 2013 and is now complete. A total of $252K was assessed in revenue, as 10 out of 18 cases were found to be in error.
  • The results of the first round of verifications show that the goods that were found to be misclassified were properly reclassified under tariff item 3808.XX.10, “in packages of a gross weight not exceeding 1.36 kg each”.
  • A second round of verifications was released in September 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 38.08

Pasta (new)
  • The risk identified is that pasta could be incorrectly classified within Heading 19.02, which is subject to various duty rates, instead of being properly classified elsewhere within the same Heading, and potentially be subject to higher duty rates.
  • This verification priority was released in November 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 19.02

Hair Dryers and Electric Smoothing Irons (new)
  • The risk identified is that imported goods could be incorrectly classified as hair dryers or smoothing irons within Heading 85.16, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in November 2015.
  • Results are not yet available.

Harmonized System Number(s):
Heading 85.16

Valuation

Apparel (Round 2)
  • The risk identified is that, given the high duty rates associated with the apparel industry (Chapters 61 and 62), importers of apparel may not be in compliance with the valuation provisions of the Customs Act. The duty rates vary from 10% to 18%.
  • This verification priority was released in February 2012 and $9M was assessed in revenue, as 13 out of 21 cases were found to be in error.
  • A second round of verifications was released in September 2015. Results are not yet available.
  • The results show that many goods were found to be valued incorrectly (e.g., assists were not added to the price paid or payable).

Harmonized System Number(s):
Various goods of Chapters 61 and 62

Footwear
  • Given the high duty rates associated with footwear (Chapter 64), there is a risk that importers of footwear may not be in compliance with the valuation provisions of the Customs Act, and the duty rates vary from 10% to 20%.
  • This verification priority was released in February 2012.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    16 14 5 36% $380,334 $1,260,596 $1,800 $1,642,730
  • The results show that many goods were found to be valued incorrectly (e.g., freight charges and service fees were not added to the price paid or payable).

Harmonized System Number(s):
Various goods of Chapter 64

Preparations and Pastrycooks' Products
  • Given the rates of duty associated with preparations of cereals, flour, starch, milk, and pastrycooks’ products, this industry was selected for verification. The products are generally classified under Chapter 19 and the majority of the Harmonized System numbers are dutiable, while others are subject to Tariff Rate Quotas.
  • This verification priority was released in June 2012.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    9 8 5 63% $116,454 $1,023,919 $2,400 $1,142,773
  • The results show that many goods were found to be valued incorrectly (e.g., packaging and transportation costs were not added to the price paid or payable).

Harmonized System Number(s):
Various goods of Chapter 19

Origin

T-Shirts
  • Previous verifications indicated that there was evidence that t-shirts of Heading 61.09 were not compliant with the NAFTA Rules of Origin for several reasons.
  • This verification priority was released in June 2013.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    51 35 18 51% $657,514 $402,739 $2,400 $1,062,653
  • The results show that some goods classified as t-shirts do not qualify under NAFTA.

Harmonized System Number(s):
Heading 61.09

Jewelry
  • The risk identified is that jewelry classified in Chapter 71 may not meet the specific rule of origin and therefore does not qualify for duty-free importation under NAFTA.
  • This verification priority was released in March 2014.
    Targeted Companies Cases Closed Cases in Error % Non-Compliance DAS Issued ($) Self-Adjustments by Importers ($) Penalties ($) Total ($)
    9 5 2 40% $0 $166,341 $4,500 $170,841
  • The results show that some goods classified as jewelry do not qualify under NAFTA.

Harmonized System Number(s):
7113.11.90, 7113.19.90 and 7113.20.90

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