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.
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 targeted verifications and by issuing verification priorities.
Most-Favoured-Nation tariff treatment withdrawn from Russia and Belarus
Effective , the Most-Favoured-Nation (MFN) tariff treatment no longer applies to goods imported into Canada that originate in Russia or Belarus.
This includes goods shipped:
- directly from Russia or Belarus
- from a third country
You must now account for these goods under the General Tariff rate of customs duty of 35%.
If a good is produced with inputs (materials, labour, etc.) from Russia or Belarus, at least 50% of the cost to produce the good must be incurred in one or more MFN beneficiary countries or Canada. This is required by the rule of origin respecting the MFN tariff.
It is a priority for the Government of Canada that goods originating from Russia or Belarus do not enter the Canadian economy under the MFN tariff treatment.
The list of goods currently being monitored and risk assessed includes, but is not limited to:
- products of iron or steel
- fertilizer
- petroleum
- non-ferrous metals
- tires
For more information:
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 | 51 | 15 | 29% | $71,750,671 | $83,800 | $71,834,471 |
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 (Round 2) – new
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) |
|---|---|---|---|---|---|---|
| 26 | 21 | 19 | 90% | $1,554,497 | $35,500 | $1,589,997 |
A second round of verifications was released in . Results are not yet available.
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 4)
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. 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) |
|---|---|---|---|---|---|---|
| 76 | 71 | 61 | 86% | $2,321,115 | $145,500 | $2,466,615 |
A fourth round of verifications was released in April 2022. Results are not yet available.
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 | 8 | 8 | 100% | $931,465 | $26,000 | $957,465 |
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 | 19 | 12 | 63% | $172,958 | $22,300 | $195,258 |
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 | 96 | 68 | 71% | $1,528,007 | $144,000 | $1,672,007 |
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.
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 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) |
|---|---|---|---|---|---|---|
| 22 | 10 | 10 | 100% | $197,831 | $25,500 | $223,331 |
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 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 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) |
|---|---|---|---|---|---|---|
| 151 | 151 | 92 | 61% | $1,146,962 | $98,450 | $1,245,412 |
A fifth round was released in . The results to date are included in the following table.
| Targeted companies (Rounds 5) | Cases closed | Cases in error | Percentage non-compliance | Duty assessed (dollars) | Penalties (dollars) | Total (dollars) |
|---|---|---|---|---|---|---|
| 39 | 28 | 13 | 46% | $989,193 | $22,500 | $1,011,693 |
The results of the first 5 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) |
|---|---|---|---|---|---|---|
| 12 | 11 | 11 | 100% | $566,268 | $30,100 | $596,368 |
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
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.
| 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 | 37 | 26 | 70% | $2,001,621 | $7,500 | $2,009,121 |
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 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 | 16 | 100% | $322,487 | $20,500 | $342,987 |
A second round of verifications was released in 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) |
|---|---|---|---|---|---|---|
| 20 | 18 | 15 | 83% | $424,928 | $18,500 | $443,428 |
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 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 | 17 | 94% | $383,162 | $7,550 | $390,712 |
A second round of verifications was released in 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) |
|---|---|---|---|---|---|---|
| 25 | 24 | 18 | 75% | $34,413 | $17,000 | $51,413 |
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 | 26 | 22 | 85% | $1,009,860 | $103,500 | $1,113,360 |
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.
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.
Bicycle Parts (Round 3)
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.
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) |
|---|---|---|---|---|---|---|
| 104 | 104 | 96 | 92% | $875,113 | $127,375 | $1,002,488 |
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) |
|---|---|---|---|---|---|---|
| 17 | 2 | 2 | 100% | $23,662 | $1,500 | $25,122 |
The results of the first 3 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)
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.
Indicator Panels and Light-Emitting Diodes (LED)
Harmonized System Number(s): Heading 85.31 and 85.41
Harmonized System Number(s): Heading 85.31 and 85.41
Risk identified: Imported goods could be incorrectly classified as indicator panels or light-emitting diodes (LED) under Headings 85.31 and 85.41, instead of being properly classified under Headings 85.28 or 94.05, and be subject to duty rates up to 7%.
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) |
|---|---|---|---|---|---|---|
| 16 | 2 | 1 | 50% | $90,035 | $0 | $90,035 |
The results of the first round show that the goods that were found to be misclassified were properly re-classified within Heading 94.05 of the Customs Tariff.
Safety Headgear (Round 5) – new
Harmonized System Number(s): Subheading 6506.10
Harmonized System Number(s): Subheading 6506.10
Risk identified: Safety headgear could be incorrectly classified under duty-free tariff items, whereas the goods could potentially be properly classified as other safety headgear under tariff item 6506.10.90, which attracts a duty rate of 8.5%.
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) |
|---|---|---|---|---|---|---|
| 59 | 59 | 47 | 80% | $1,131,576 | $131,750 | $1,263,326 |
A fifth round of verifications was released in . Results are not yet available.
The results of the first 4 rounds show that the vast majority of the goods that were found to be misclassified were properly re-classified under tariff item 6506.10.90 of the Customs Tariff.
Disposable and Protective Gloves (Round 5) – new
Harmonized System Number(s): Subheadings 3926.20 and 4015.19
Harmonized System Number(s): Subheadings 3926.20 and 4015.19
Risk identified: Disposable and protective gloves, which are duty-free if the gloves qualify for specific end-uses, may be properly classified 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 and is now complete.
A second round of verifications was released in , a third one in , and a fourth one 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) |
|---|---|---|---|---|---|---|
| 62 | 62 | 53 | 85% | $4,617,604 | $31,000 | $4,648,604 |
A fifth round of verifications was released in . Results are not yet available.
The results of the first 4 rounds 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.
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 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) |
|---|---|---|---|---|---|---|
| 228 | 228 | 133 | 58% | $85,644,909 | $317,700 | $85,962,609 |
A fourth round of verifications was released in . 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).
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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