Historical verification priorities:
On this page
Tariff classification
Fresh cut flowers
- Risk identified: Fresh cut flowers may be misclassified as "other" fresh cut flowers, which attract a duty rate of 6%.
- Flowers named in the Customs Tariff should be classified under their respective tariff items, which attract duty rates from 8% to 16%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 32 | 32 | 23 | 72% | $126,265 | $66,000 | $192,265 |
- The results show that many flowers specifically named in the Customs Tariff were misclassified as other fresh cut flowers.
- A verification priority regarding the valuation of fresh cut flowers is also complete.
Palm oil
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 17 | 17 | 10 | 59% | $5,297,627 | $600 | $5,298,277 |
- The results show that most of the goods that were found to be misclassified were properly re-classified under subheading 1517.90 or under tariff item 1511.90.90 of the Customs Tariff.
Wheel rims and spokes
- Risk identified: 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 (for example, 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 21 | 21 | 20 | 95% | $107,714 | $73,200 | $180,914 |
- The results of both rounds of verifications confirmed that the majority of the goods that were verified were in fact for use on motor vehicles.
Apparel samples
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 9 | 9 | 8 | 89% | $18,445 | $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.
Bags of polymers of ethylene
- Risk identified: 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) tariff 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 18 | 18 | 4 | 22% | $47,612 | $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.
Generating sets
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 24 | 24 | 20 | 83% | $91,224 | $2,100 | $93,294 |
- 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.
Coconut milk from Asian countries
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 42 | 42 | 21 | 50% | $248,135 | $5,850 | $253,985 |
- The results of both rounds 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.
Gazebos
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 33 | 33 | 19 | 58% | $728,983 | $300 | $729,283 |
- The verifications confirmed the suspected misclassification.
Machinery for public works
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 10 | 10 | 2 | 20% | $0 | $0 | $0 |
- The results show that the majority of the goods verified were properly classified as machinery for public works.
Polyurethanes in primary forms
- Risk identified: Goods could be incorrectly classified under subheading 3909.50 (such as 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 21 | 21 | 8 | 38% | $140,862 | $150 | $141,012 |
- 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.
Articles of iron or steel
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 14 | 14 | 10 | 71% | $26,568 | $9,900 | $36,468 |
- The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 73 of the Customs Tariff.
Spectacle lenses
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 29 | 29 | 23 | 79% | $903,039 | $10,200 | $913,239 |
- The results of both rounds of verifications show that most of the goods that were found to be misclassified were properly re-classified under tariff item 9001.50.90 of the Customs Tariff.
Cereals
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 7 | 7 | 7 | 100% | $29,878 | $150 | $30,028 |
- 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 of the Customs Tariff.
Special purpose motor vehicles
- Risk identified: 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 between 6.1% and 6.7%.
- This verification priority was released in and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 62 | 62 | 32 | 52% | $308,599 | $3,000 | $311,599 |
- The results of the 2 rounds 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.
Geophysical and oceanographic instruments
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 24 | 24 | 19 | 79% | $331,898 | $3,000 | $334,898 |
- 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.
Prepared meat of swine
- Risk identified: Imported goods could be incorrectly classified as prepared meat of swine within Heading 16.02, instead of being properly classified elsewhere within the same Chapter. The duty rates for some tariff items within Chapter 16 range from 0% to 12.5%, while others are tariff rate quota (TRQ) tariff items, which are subject to duty rates as high as 253%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 30 | 30 | 9 | 30% | $15,649 | $150 | $15,799 |
- The results show that the goods that were found to be misclassified were properly re-classified elsewhere under Chapter 16 or within Chapters 2, 19, 20 and 21 of the Customs Tariff.
Live plants
- Risk identified: Live plants could be incorrectly classified under a duty-free tariff item within Heading 16.02, instead of being properly classified elsewhere within the same heading and potentially be subject to a duty rate of 6%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 10 | 10 | 3 | 30% | $4,137 | $150 | $4,287 |
- The results show that the majority of the goods were correctly classified.
Interchangeable tools
- Risk identified: Imported goods could be incorrectly classified as interchangeable tools within Heading 82.07, instead of being properly classified under various tariff items within different Chapters (for example, Chapters 39, 68, 82 and 84) and be subject to duty rates up to 6.5%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 20 | 20 | 11 | 55% | $65,157 | $17,850 | $83,007 |
- The results show that the goods that were found to be misclassified were properly re-classified elsewhere under Chapter 82 or within Chapters 73, 83, 84, 85 and 90 of the Customs Tariff.
Air brakes and parts thereof
- Risk identified: Imported goods could be incorrectly classified as air brakes and parts thereof, within Subheading 8607.21, instead of being properly classified elsewhere within Heading 86.07, and be subject to duty rates up to 10%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 16 | 16 | 13 | 81% | $334,620 | $3,750 | $338,370 |
- The results show that the goods that were found to be misclassified were properly re-classified elsewhere within Heading 86.07 or under Chapters 40, 73, 84, 85 and 90 of the Customs Tariff.
Sausages and similar products
- Risk identified: Imported goods could be incorrectly classified as sausages and similar products under Heading 16.01, instead of being properly classified under a tariff rate quota (TRQ) tariff item, and be subject to duty rates of over 200%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 10 | 10 | 5 | 50% | $1,698,387 | $450 | $1,698,837 |
- The results show that the majority of the goods that were found to be misclassified were properly re-classified under various tariff items, including TRQ tariff items, within Heading 16.01 of the Customs Tariff.
Yeasts and other micro-organisms
- Risk identified: Imported goods could be incorrectly classified as yeasts under Heading 21.02, whereas the goods could potentially be properly classified elsewhere within Heading 21.02, and be subject to a duty rate of 6%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 11 | 11 | 5 | 45% | $241,942 | $150 | $242,092 |
- The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 21 of the Customs Tariff.
Chemical products
- Risk identified: 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)
- This verification priority was released in and is now complete.
- A second round of verifications was released in , and a third round in , and they are also complete.
| Targeted companies (Rounds 1-2-3) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 94 | 94 | 53 | 56% | $540,796 | $20,550 | $561,346 |
- The results of the 3 rounds 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”.
Handkerchiefs, towels and related paper products
- Risk identified: Imported goods could be incorrectly classified as handkerchiefs, towels and other related paper products within Heading 48.18, instead of being properly classified under various tariff items within different Chapters (for example, Chapters 30, 33, 34, 39, 56 and 96) and be subject to duty rates up to 12%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 30 | 30 | 17 | 57% | $176,968 | $13,275 | $190,243 |
- The results show that the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 48 or under Chapter 34 of the Customs Tariff.
Photographic film
- Risk identified: Imported goods could be incorrectly classified as photographic film under Heading 37.02, instead of being properly classified under Chapter 96, and be subject to a duty rate of 8.5%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 13 | 13 | 8 | 62% | $37,690 | $27,000 | $64,690 |
- The results show that the goods that were found to be misclassified were properly re-classified elsewhere under Chapter 37 or within Chapter 96 of the Customs Tariff.
Railway equipment
- Risk identified: Imported goods could be incorrectly classified as railway equipment under Heading 86.08, instead of being properly classified under various tariff items, and be subject to duty rates up to 6.5%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 17 | 17 | 14 | 82% | $57,184 | $6,450 | $63,634 |
- The results show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Chapter 85 of the Customs Tariff.
Sacks and bags under Tariff item 9903.00.00
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 16 | 16 | 8 | 50% | $716,576 | $11,700 | $728,276 |
- The results of both rounds show that some of the goods verified did not qualify for the use of conditional relief tariff item 9903.00.00.
Pebbles, limestone and granules
- Risk identified: Imported goods could be incorrectly classified as pebbles, limestone and granules within Heading 25.17, instead of being properly classified within Heading 68.02, and potentially be subject to a duty rate of 6.5%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 14 | 14 | 9 | 64% | $38,819 | $7,950 | $46,769 |
- The results show that most of the goods that were found to be misclassified were properly re-classified within Chapter 68 of the Customs Tariff.
Curling irons
- Risk identified: 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 is now complete. A second round of verifications was released in February 2014 and is also complete. A third round of verifications was released in October 2016 and is also complete.
| Targeted companies (Rounds 1-2-3) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 68 | 68 | 44 | 65% | $543,448 | $56,575 | $600,023 |
- The results of the first 3 rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8516.32.90.
Seaweed
- Risk identified: Prepared seaweed, which attracts a duty rate of 6%, could be misclassified under Heading 12.12 as unprepared seaweed, which is duty-free.
- This verification priority was released in , and is now complete.
- A second round of verifications was released in , and is also complete.
- A third round of verifications was released in , and is also complete.
- A fourth round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2-3-4) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 94 | 94 | 78 | 83% | $908,885 | $35,325 | $944,210 |
- The results of the first 4 rounds show that most of the goods that were found to be misclassified were properly re-classified under classification number 2008.99.90.99 of the Customs Tariff.
Dextrins and other modified starches
- Risk identified: Goods could be incorrectly classified as “dextrins and other modified starches”, 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 and is now complete.
- A second round of verifications was released in and is also complete.
- A third round of verifications was released in and is also complete.
- A fourth round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2-3-4) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 92 | 92 | 64 | 70% | $1,199,195 | $61,300 | $1,260,495 |
- The results of the first 4 rounds 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.
Hair extensions
- Risk identified: Hair extensions could be misclassified under Heading 67.03, which is duty-free, instead of being properly classified under Heading 67.04 (for example, wigs, false beards, etc.), which attracts a duty rate of 15.5%.
- This verification priority was released in and is now complete.
- A second round of verifications was released in and is also complete.
- A third round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2-3) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 60 | 60 | 53 | 88% | $2,176,128 | $45,100 | $2,221,228 |
- The results of the first 3 rounds show that the goods that were found to be misclassified were properly re-classified under Heading 67.04 of the Customs Tariff.
Parts for power trains
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 18 | 18 | 16 | 89% | $88,978 | $6,450 | $95,428 |
- The results of the first 2 rounds 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.
Tubes, pipes and hoses
- Risk identified: 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 , and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 35 | 35 | 29 | 83% | $439,996 | $12,350 | $452,346 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 39.17 of the Customs Tariff.
Hair dryers and electric smoothing irons
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 35 | 35 | 16 | 46% | $90,502 | $2,700 | $93,202 |
- The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 85.16 of the Customs Tariff.
Stone blocks and slabs
- Risk identified: Imported goods could be incorrectly classified as stone blocks and slabs under Headings 25.14, 25.15 and 25.16, which are all duty free, instead of being properly classified under various tariff items within Chapter 68, and be subject to duty rates up to 7%.
- This verification priority was released in and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 59 | 59 | 54 | 92% | $559,027 | $15,750 | $574,777 |
- The results of the first 2 rounds show that the majority of the goods that were found to be misclassified were properly re-classified under Chapter 68 of the Customs Tariff.
Nails and similar articles of iron or steel
- Risk identified: Imported goods could be incorrectly classified as nails and similar articles of iron or steel under Heading 73.17, which is duty free, whereas the goods could potentially be properly classified under dutiable tariff items, such as 8305.20.00 (staples in strips), and be subject to a duty rate of 6.5%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 39 | 39 | 14 | 36% | $158,026 | $600 | $158,626 |
- The results show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8305.20.00 of the Customs Tariff.
Mineral waters and aerated waters
- Risk identified: Imported goods could be incorrectly classified as mineral waters and aerated waters within Heading 22.01, instead of being properly classified elsewhere within the same Chapter, and potentially be subject to a duty rate up to 11%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 10 | 10 | 7 | 70% | $48,963 | $600 | $49,563 |
- The results show that most of the goods that were found to be misclassified were properly re-classified under tariff item 2201.90.00 of the Customs Tariff.
Mountings, fittings, and similar articles
- Risk identified: Imported goods could be incorrectly classified as mountings, fittings and similar articles within Heading 83.02, instead of being properly classified under various tariff items within different Chapters (for example, Chapters 73, 83, 84, 87 and 94), and potentially be subject to duty rates up to 8%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 41 | 41 | 29 | 71% | $245,311 | $15,000 | $260,311 |
- The results show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 39, 73, 82, 83, 84, 85, 87, 94 and 98 of the Customs Tariff.
Vices and clamps
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 40 | 40 | 35 | 88% | $327,428 | $26,250 | $353,678 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8205.70.90 of the Customs Tariff.
Castors with mountings of base metal
- Risk identified: Imported goods could be incorrectly classified as castors with mountings of base metal under Heading 83.02, which is duty free, whereas the goods could potentially be properly classified under dutiable tariff items, such as 8716.90.99 (parts of not mechanically propelled vehicles), and be subject to a duty rate up to 6.5%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 49 | 49 | 35 | 71% | $392,082 | $6,300 | $398,382 |
- The results show that the goods that were found to be misclassified were properly re-classified under tariff item 8716.90.99 or under Chapters 39, 40, 73, 84 and 94 of the Customs Tariff.
Articles of plastics
- Risk identified: 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 and is now complete.
- A second round of verifications was released in and is also complete.
- A third round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2-3) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 29 | 29 | 26 | 90% | $496,063 | $39,600 | $535,663 |
- The results of the first 3 rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 39 of the Customs Tariff.
Olive oil
- Risk identified: Imported goods could be incorrectly classified as olive oil (under Heading 15.09) or others oils obtained solely from olives (under Heading 15.10), which are duty free, instead of being properly classified elsewhere within Chapter 15, and be subject to duty rates up to 11%.
- This verification priority was released in and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 66 | 66 | 38 | 58% | $794,162 | $10,725 | $804,887 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff item 1517.90.99 of the Customs Tariff.
Articles of apparel and clothing accessories
- Risk identified: Goods could be incorrectly classified within Heading 39.26, which attracts 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 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 and is now complete. A second round of verifications was released in May 2016 and a third round in October 2017, and they are also complete.
| Targeted companies (Rounds 1-2-3) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 205 | 205 | 152 | 74% | $4,000,100 | $58,700 | $4,058,800 |
- The results of the 3 rounds show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 42, 61, 62 and 65 of the Customs Tariff.
Import permit numbers
- Risk identified: Imported goods could be classified under “within access commitment” tariff items within various chapters, such as Chapter 2 (meat of bovine animals and poultry) and Chapter 4 (dairy products), without the required import permit number on the declaration.
- Those chapters include goods that are subject to tariff rate quotas (TRQs) under Canada’s supply management system.
- TRQ goods imported without the required import permit number are properly classified under “over access commitment” tariff items and are subject to very high duty rates.
- This verification priority was released in October 2017 and is now complete. A second round of verifications was released in May 2019 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 398 | 398 | 208 | 52% | $3,236,541 | $761,750 | $3,998,291 |
- The results of the 2 rounds show that in most cases, the importers had incorrectly declared their import permit numbers, or they were not in possession of valid ones, in which case the goods were re-classified under an “over access commitment” tariff item of the Customs Tariff.
Stone Table and Counter Tops
- Risk identified: Stone table and counter tops could be incorrectly classified under tariff item 9403.90.00, which is duty-free, instead of being properly classified under various tariff items within Heading 68.02, which attract a duty rates up to 6.5%.
- This verification priority was released in and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 21 | 21 | 18 | 86% | $701,929 | $33,400 | $735,329 |
- The results of the first 2 rounds show that the goods that were found to be misclassified were properly re-classified under Heading 68.02 or elsewhere within Heading 94.03 of the Customs Tariff.
Pasta
- Risk identified: 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 and is now complete.
- A second round of verifications was released in , and a third round in , and they are also complete.
| Targeted companies (Rounds 1-2-3) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 146 | 146 | 105 | 72% | $1,764,700 | $136,075 | $1,900,775 |
- The results of the first 3 rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 19.02 of the Customs Tariff.
Other chemical products
- Risk identified: Imported goods could be incorrectly classified as other chemical products within Heading 38.24, instead of being properly classified elsewhere within various chapters, such as 15 and 38, and be subject to duty rates up to 11%.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 18 | 18 | 14 | 78% | $622,351 | $13,000 | $635,351 |
- The results of the first round show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 38 of the Customs Tariff.
Batteries
- Risk identified: Batteries may be misclassified under duty-free tariff items within Heading 85.06, whereas they should be properly classified under other tariff items within the same heading, and be subject to a duty rate of 7%.
- This verification priority was released in and is now complete. A second round of verifications was released in , a third round in , and a fourth round in , and they are also complete.
| Targeted companies (Rounds 1-2-3-4) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 45 | 45 | 44 | 98% | $1,210,373 | $93,050 | $1,303,423 |
- The results of the first 4 rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8506.10.90 of the Customs Tariff.
Footwear ($30 or more per pair)
- Risk identified: 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 and is now complete. A second round of verifications was released in , a third round in , and a fourth round in , and they are also complete.
| Targeted companies (Rounds 1-2-3-4) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 195 | 195 | 147 | 75% | $2,865,983 | $171,750 | $3,037,723 |
- The results of the first 4 rounds 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.
Gloves
- Risk identified: Imported goods could be incorrectly classified as gloves within Headings 39.26 and 42.03, instead of being properly classified within Chapter 61 or 62, and potentially be subject to higher duty rates up to 18%.
- This verification priority was released in and is now complete. A second round of verifications was released in and it is also complete.
| Targeted companies (Round 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 49 | 49 | 40 | 82% | $2,617,772 | $68,900 | $2,686,672 |
- The results of the first 2 rounds show that the goods that were found to be misclassified were properly re-classified under Chapters 39, 40, 42, 62 and 65 of the Customs Tariff.
Bags
- Risk identified: Imported goods could be incorrectly classified as bags within Heading 42.02, instead of being properly classified elsewhere within the same heading, and potentially be subject to duty rates up to 11%.
- This verification priority was released in and is now complete. A second round of verifications was released in and it is also complete.
| Targeted companies (Round 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 60 | 60 | 44 | 73% | $3,656,166 | $12,550 | $3,668,716 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 42.02 of the Customs Tariff.
Other Mountings and Fittings, Suitable for Furniture
- Risk identified: Imported goods could be incorrectly classified as mountings and fittings, suitable for furniture, within Heading 83.02, instead of being properly classified elsewhere within various chapters, and be subject to duty rates up to 6.5%.
- This verification priority was released in and is now complete. A second round of verifications was released in and it is also complete.
| Targeted companies (Round 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 36 | 36 | 33 | 92% | $773,298 | $70,000 | $843,298 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 83.02 of the Customs Tariff.
Air Heaters and Hot Air Distributors
- Risk identified: Imported goods could be incorrectly classified as air heaters and hot air distributors within Heading 73.22, instead of being properly classified elsewhere within the same chapter, and be subject to duty rates up to 7.5%.
- This verification priority was released in and is now complete. A second round of verifications was released in and it is also complete.
| Targeted companies (Round 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 43 | 43 | 36 | 84% | $417,895 | $25,050 | $442,945 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified within Heading 73.21 of the Customs Tariff.
Flashlights and Miners' Safety Lamps
- Risk identified: Imported goods could be incorrectly classified as flashlights and miners' safety lamps within Heading 85.13, instead of being properly classified elsewhere within the same heading, and be subject to a duty rate of 7%.
- This verification priority was released in and is now complete. A second round of verifications was released in and it is also complete.
| Targeted companies (Round 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 37 | 37 | 29 | 78% | $2,027,961 | $154,150 | $2,182,111 |
- The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 85.13 or within Heading 94.05 of the Customs Tariff.
Valuation
Fresh cut flowers
- Risk identified: Aside from the potential misclassification of fresh cut flowers, there is also a risk of undervaluation of the goods.
- Companies were selected for both valuation and tariff classification trade compliance verifications.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 30 | 30 | 23 | 77% | $628,098 | $18,000 | $646,098 |
- The results show that many goods were found to be valued incorrectly (for example, transportation costs were not added to the price paid or payable).
Yachts for pleasure or sport
- Risk identified: Importers of yachts and pleasure crafts may not be in compliance with the valuation provisions of the Customs Act. The industry has been selected given the high rates of duty associated with Heading 89.03. Tariff items under this heading are dutiable with the exception of tariff item 8903.99.10 (racing shells), which is duty-free.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 10 | 10 | 3 | 30% | $8,631 | $450 | $9,081 |
- The results show that some goods were found to be valued incorrectly (for example, service fees were not added to the price paid or payable).
Preparations and pastrycooks’ products
- Given the rates of duty associated with preparations of cereals, special, 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 9 | 9 | 5 | 56% | $1,140,373 | $2,400 | $1,142,773 |
- The results show that many goods were found to be valued incorrectly (for example, packaging and transportation costs were not added to the price paid or payable).
Footwear
- Risk identified: Given the high rates of duty 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. The duty rates vary from 10% to 20%.
- This verification priority was released in and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 79 | 79 | 45 | 57% | $20,972,837 | $52,650 | $21,025,487 |
- The results of the first 2 rounds 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).
Origin
Mattress upholstery
- This verification priority was initiated following an industry complaint about exports of mattress casings from the USA to Canadian mattress manufacturers, claiming the provisions of the North American Free Trade Agreement (NAFTA), when textile material may have been sourced from outside NAFTA territories.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 18 | 18 | 8 | 44% | $179,795 | $25,900 | $205,695 |
- The results show that some goods did not qualify under NAFTA.
Cotton pants
- Previous verifications indicated that there was evidence that men's or boy's cotton pants of subheading 6203.42 frequently failed challenges to their entitlement as originating goods under the NAFTA tariff treatments due to the fabric-forward requirement of the specific rule of origin governing the goods.
- This verification priority was released in and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 13 | 13 | 1 | 8% | $653,389 | $0 | $653,389 |
- The results indicated that most of the verified goods qualified under NAFTA.
Jewelry
- Risk identified: 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 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 9 | 9 | 3 | 33% | $167,684 | $4,500 | $172,184 |
- The results show that some goods classified as jewelry do not qualify under NAFTA.
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 and is now complete.
- A second round of verifications was released in and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 84 | 84 | 40 | 48% | $2,785,435 | $64,650 | $2,850,085 |
- The results of the first 2 rounds show that some goods classified as t-shirts do not qualify under NAFTA.
Bedding and drapery
- Risk identified: Manufacturers in the United States of America were using fabrics not produced in the North American Free Trade Agreement (NAFTA) territories as an input for bedding and drapery (under Headings 63.01, 63.02 and 63.03), but were declaring the goods as “Made in USA” in order to qualify for NAFTA.
- This verification priority was released in February 2012, and is now complete.
- A second round of verifications was released in December 2017 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed issued (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 37 | 37 | 18 | 49% | $1,900,812 | $69,475 | $1,970,287 |
- The results of the 2 rounds confirmed that some of the products that were verified did not qualify under NAFTA because of the inputs used in their production.
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