Trade compliance verifications
Find out how the Canada Border Services Agency (CBSA) approaches the verification of commercial goods destined for Canada. Review the results of our ongoing efforts to ensure trade compliance.
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About trade compliance
To be trade compliant, the importing community must meet all of the requirements governing the accounting of commercial goods imported into Canada, including, but not limited to:
- classifying their commercial goods under the appropriate tariff classification
- accurately declaring the origin and value of the goods, in accordance with legislative requirements
- paying the appropriate duties and taxes on the goods
The CBSA monitors the extent to which commercial goods are trade compliant by conducting random and targeted verifications and by issuing 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
- 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
Spent fowl (Round 2)
Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
Risk identified: Imported goods could be incorrectly classified as spent fowl within Headings 02.07, 16.01 and 16.02, instead of being properly classified under tariff items subject to tariff rate quotas (TRQs) within the same chapters, and potentially be subject to very high duty rates.
This verification priority was released in July 2017 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 68 | 68 | 30 | 44% | $178,557,738 | $127,650 | $178,685,388 |
A second round of verifications was released in May 2020. The results to date are included in the following table.
| Targeted companies (Round 2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 53 | 14 | 0 | 0% | $0 | $0 | $0 |
The results of the first 2 rounds show that most of the goods that were found to be misclassified were properly re-classified as broiler chicken under Chapter 2 of the Customs Tariff.
LED lamps
Harmonized System Number(s): Heading 85.39
Harmonized System Number(s): Heading 85.39
Risk identified: Imported goods could be incorrectly classified as light-emitting diode (LED) lamps under Heading 85.39, instead of being properly classified under Heading 94.05, and be subject to a duty rate of 7%. This verification priority was released in May 2020 and the results to date are included in the following table.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 27 | 7 | 7 | 100% | $171,339 | $0 | $171,339 |
The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under Heading 94.05 of the Customs Tariff.
Furniture for non-domestic purposes (Round 3)
Harmonized System Number(s): Headings 94.01 and 94.03
Harmonized System Number(s): Headings 94.01 and 94.03
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 up to 9.5%.
This verification priority was released in January 2013 and is now complete.
A second round of verifications was released in February 2017 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 55 | 55 | 44 | 80% | $2,487,993 | $62,850 | $2,550,843 |
A third round of verifications was released in March 2019. The results to date are included in the following table.
| Targeted companies (Round 3) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 77 | 48 | 40 | 83% | $1,107,598 | $58,500 | $1,166,098 |
The results of the first 3 rounds show that most of the goods that were found to be misclassified were properly re-classified as furniture for domestic purposes.
Batteries (Round 4)
Harmonized System Number(s): Heading 85.06
Harmonized System Number(s): Heading 85.06
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 November 2013 and is now complete. A second round of verifications was released in August 2016, and a third round in June 2018, 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) |
|---|---|---|---|---|---|---|
| 36 | 36 | 35 | 97% | $278,908 | $66,550 | $345,458 |
A fourth round of verifications was released in May 2020. The results to date are included in the following table.
| Targeted companies (Round 4) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 9 | 4 | 4 | 100% | $210,232 | $13,000 | $223,232 |
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) (Round 4)
Harmonized System Number(s): Heading 64.03
Harmonized System Number(s): Heading 64.03
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 March 2014 and is now complete. A second round of verifications was released in May 2016 and a third round in July 2017, 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) |
|---|---|---|---|---|---|---|
| 175 | 175 | 134 | 77% | $2,686,278 | $148,450 | $2,834,728 |
A fourth round of verifications was released in May 2019 and the results to date are included in the following table.
| Targeted companies (Round 4) | Cases closed | Cases in error | Percentage non-compliance | Duty Assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 20 | 17 | 10 | 59% | $125,760 | $17,800 | $143,560 |
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.
Parts of lamps (Round 4)
Harmonized System Number(s): Heading 94.05
Harmonized System Number(s): Heading 94.05
Risk identified: 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 and is now complete. A second round of verifications was released in February 2017 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 141 | 141 | 106 | 75% | $1,958,689 | $61,600 | $2,020,325 |
A third round of verifications was released in December 2018 and a fourth round in May 2020. The results to date are included in the following table.
| Targeted companies (Rounds 3-4) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 112 | 70 | 43 | 61% | $817,285 | $72,000 | $889,285 |
The results of the first 4 rounds show that most of the goods that were found to be misclassified were properly re-classified within Heading 94.05 or under Chapters 73, 76, 84 and 85 of the Customs Tariff.
Pasta (Round 3)
Harmonized System Number(s): Heading 19.02
Harmonized System Number(s): Heading 19.02
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 November 2015 and is now complete. A second round of verifications was released in April 2017 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 136 | 136 | 96 | 71% | $1,375,902 | $117,475 | $1,493,377 |
A third round of verifications was released in October 2019 and the results to date are included in the following table.
| Targeted companies (Round 3) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 11 | 8 | 7 | 88% | $378,531 | $3,100 | $381,631 |
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.
Cell phone cases (Round 3)
Harmonized System Number(s): Headings 39.26, 42.02 and 85.17
Harmonized System Number(s): Headings 39.26, 42.02 and 85.17
Risk identified: Cell phone cases could be incorrectly classified under various tariff items within Headings 39.26, 42.02 and 85.17, whereas the goods could potentially be properly classified under tariff item 4202.32.90 (articles of a kind normally carried in the pocket or in the handbag; with outer surface of sheeting of plastics or of textile materials; other), and be subject to a duty rate of 8%.
This verification priority was released in January 2016 and is now complete. A second round of verifications was released in June 2018 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 39 | 39 | 36 | 92% | $2,972,835 | $46,250 | $3,019,085 |
A third round of verifications was released in March 2021. Results are not yet available.
The results of the first 2 round show that most of the goods that were found to be misclassified were properly re-classified under tariff item 4202.32.90 of the Customs Tariff.
Pickled vegetables (Round 5)
Harmonized System Number(s): Heading 20.01
Harmonized System Number(s): Heading 20.01
Risk identified: Dill pickles or baby dill pickles may be misclassified within Heading 20.01. Misclassification results in an avoidance of the 8% duty payable for subheading 2001.10, which would be the appropriate classification for pickles.
This verification priority was released in June 2012 and is now complete. A second round of verifications was released in August 2013 and a third one in January 2017, 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) |
|---|---|---|---|---|---|---|
| 58 | 58 | 35 | 60% | $526,643 | $21,150 | $547,793 |
A fourth round of verifications was released in and the results to date are included in the following table
| Targeted companies (Round 4) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 93 | 92 | 56 | 61% | $620,319 | $74,800 | $695,119 |
A fifth round of verifications was released in March 2021. Results are not yet available.
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 items 2001.10.00 (cucumbers and gherkins) and 2005.99.90 (other vegetables) of the Customs Tariff.
Gloves (Round 2)
Harmonized System Number(s): Headings 39.26 and 42.03
Harmonized System Number(s): Headings 39.26 and 42.03
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 July 2017 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 37 | 37 | 28 | 76% | $2,051,504 | $38,800 | $2,090,304 |
A second round of verifications was released in October 2019 and the results to date are included in the following table.
| Targeted companies (Round 2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 13 | 4 | 4 | 100% | $63,359 | $25,500 | $88,859 |
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 (Round 2)
Harmonized System Number(s): Heading 42.02
Harmonized System Number(s): Heading 42.02
The risk identified is that 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
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 20 | 20 | 16 | 80% | $1,426,432 | $4,050 | $1,430,482 |
A second round of verifications was released in July 2019 and the results to date are included in the following table.
| Targeted companies (Round 2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 40 | 32 | 22 | 69% | $1,303,252 | $6,500 | $1,309,752 |
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 (Round 2)
Harmonized System Number(s): Heading 83.02
Harmonized System Number(s): Heading 83.02
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 June 2018 and a second round of verifications was released in February 2020. The results to date are included in the following table.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 36 | 25 | 22 | 88% | $412,893 | $24,000 | $436,893 |
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 (Round 2)
Harmonized System Number(s): Heading 73.22
Harmonized System Number(s): Heading 73.22
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 June 2018 and a second round in July 2019, and the results to date are included in the following table.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 43 | 39 | 33 | 85% | $390,038 | $24,550 | $414,588 |
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 (Round 2)
Harmonized System Number(s): Heading 85.13
Harmonized System Number(s): Heading 85.13
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 June 2018 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 10 | 10 | 7 | 70% | $1,018,101 | $50,650 | $1,068,751 |
A second round of verifications was released in October 2019 and the results to date are included in the following table.
| Targeted companies (Round 2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 27 | 22 | 18 | 82% | $368,357 | $58,500 | $426,857 |
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.
Stone table and counter tops (Round 2)
Harmonized System Number(s): Heading 94.03
Harmonized System Number(s): Heading 94.03
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 duty rates up to 6.5%.
This verification priority was released in March 2016 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 13 | 13 | 13 | 100% | $629,480 | $3,900 | $633,380 |
A second round of verifications was released in October 2018 and the results to date are included in the following table.
| Targeted companies (Round 2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 8 | 6 | 3 | 50% | $65,320 | $29,500 | $94,820 |
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.
Parts of machines and mechanical appliances
Harmonized System Number(s): Heading 84.79
Harmonized System Number(s): Heading 84.79
Risk identified: Imported goods could be incorrectly classified as parts of machines and mechanical appliances within Heading 84.79, instead of being properly classified elsewhere within various Chapters, such as 39 and 73, and be subject to duty rates up to 6.5%.
This verification priority was released in December 2018 and the results to date are included in the following table.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 14 | 12 | 9 | 75% | $41,529 | $12,000 | $53,529 |
The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under Chapters 39, 73, 84, 85 and 90 of the Customs Tariff.
Other chemical products
Harmonized System Number(s): Heading 38.24
Harmonized System Number(s): Heading 38.24
The risk identified is that 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 the results to date are included in the following table
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 18 | 14 | 10 | 71% | $34,583 | $2,000 | $36,583 |
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
Bicycle Parts (Round 3) (new)
Harmonized System Number(s): Heading 87.14
Harmonized System Number(s): Heading 87.14
Risk identified: 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 and is now complete. A second round of verifications was released in October 2016 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 104 | 104 | 96 | 92% | $875,113 | $127,375 | $1,002,488 |
A third round of verifications was released in June 2021. Results are not yet available.
The results of the first 2 rounds 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.
Parts for Use with Machinery of Chapter 84 (Round 3) (new)
Harmonized System Number(s): Heading 84.31
Harmonized System Number(s): Heading 84.31
Risk identified: 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 and is now complete. A second round of verifications was released in October 2017 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 25 | 25 | 18 | 72% | $377,957 | $3,200 | $381,157 |
A third round of verifications was released in June 2021. Results are not yet available.
The results of the first 2 rounds show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 39, 40, 70, 73, 83 and 84 of the Customs Tariff.
Valuation
Apparel (Round 4)
Harmonized System Number(s): Chapters 61 and 62
Harmonized System Number(s): Chapters 61 and 62
Risk identified: Given the high rates of duty 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 is now complete. A second round of verifications was released in September 2015 and is also complete.
| Targeted companies (Rounds 1-2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 143 | 143 | 86 | 60% | $65,970,233 | $216,300 | $66,186,533 |
A third round of verifications was released in and the results to date are included in the following table.
| Targeted companies (Round 3) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 85 | 84 | 46 | 55% | $19,564,734 | $100,900 | $19,665,634 |
A fourth round of verifications was released in April 2021. Results are not yet available.
The results of the first 3 rounds show that many goods were found to be valued incorrectly (e.g., assists were not added to the price paid or payable).
Footwear (Round 2)
Harmonized System Number(s): Chapter 64
Harmonized System Number(s): Chapter 64
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 February 2012 and is now complete.
| Targeted companies (Round 1) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 16 | 16 | 7 | 44% | $2,732,071 | $1,950 | $2,734,021 |
A second round of verifications was released in October 2018 and the results to date are included in the following table.
| Targeted companies (Round 2) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 63 | 54 | 30 | 56% | $9,843,869 | $20,600 | $9,864,469 |
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
No active origin verification priorities at this time.
Contact us
If you have any questions regarding this list, please send an email to the following address: cbsa.trci-erecio.asfc@cbsa-asfc.gc.ca
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