Trade Compliance Verifications
January 2019
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- If you have any questions regarding this list, please send an email to: TCQA.OCAQ@cbsa-asfc.gc.ca.
The CBSA manages trade compliance with the Tariff Classification, Valuation, and Origin programs using the following two post-release verification processes:
- Random verifications
- Verification priorities
Random verifications
Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including:
- Risk assessment;
- Revenue assessment; and
- Promoting voluntary compliance.
Verification priorities
Targeted verification priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years. The current verification priorities are:
Tariff Classification
Curling Irons (Round 3)
Harmonized System Number(s): Subheading 8516.32
Harmonized System Number(s): Subheading 8516.32
- The risk identified is that goods may be misclassified as curling irons, which are duty-free. However, similar goods, such as flat irons, are properly classified under tariff item 8516.32.90, which attracts a duty rate of 6.5%.
- This verification priority was released in June 2012 and is now complete.
- A second round of verifications was released in February 2014 and is also complete.
| Targeted Companies (Round 1-2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 53 | 53 | 36 | 68% | $124,928 | $337,527 | $48,175 | $510,630 |
- A third round of verifications was released in October 2016 and the results to date are included in the following table.
| Targeted Companies (Round 3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 15 | 14 | 7 | 50% | $17,821 | $63,172 | $8,250 | $89,243 |
- The results of the first three rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8516.32.90.
Furniture for Non-Domestic Purposes (Round 2)
Harmonized System Number(s): Headings 94.01 and 94.03
Harmonized System Number(s): Headings 94.01 and 94.03
- Headings 94.01 (Seats) and 94.03 (Other furniture and parts thereof) classify furniture for domestic purposes or other furniture for non-domestic purposes. The risk identified is that goods may be misclassified as furniture for non-domestic purposes, which is duty-free, instead of furniture for domestic purposes, which attracts a duty rate up to 9.5%.
- This verification priority was released in January 2013, and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 25 | 25 | 15 | 60% | $337,663 | $594,090 | $1,050 | $932,803 |
- A second round of verifications was released in February 2017, and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 30 | 17 | 16 | 94% | $104,700 | $889,126 | $30,550 | $1,024,376 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified as furniture for domestic purposes.
Seaweed (Round 4)
Harmonized System Number(s): Heading 12.12
Harmonized System Number(s): Heading 12.12
- The risk identified is that prepared seaweed, which attracts a duty rate of 6%, could be misclassified under Heading 12.12 as unprepared seaweed, which is duty-free.
- This verification priority was released in September 2011, and is now complete.
- A second round of verifications was released in May 2013, and is also complete.
- A third round of verifications was released in March 2016, and is also complete.
| Targeted Companies (Round 1-2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 76 | 76 | 64 | 84% | $247,273 | $618,307 | $34,125 | $899,705 |
- A fourth round of verifications was released in April 2017 and the results to date are included in the following table.
| Targeted Companies (Round 4) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 18 | 16 | 12 | 75% | $8,476 | $9,431 | $1,050 | $18,957 |
- The results of the first four rounds show that most of the goods that were found to be misclassified were properly re-classified under classification number 2008.99.90.99 of the Customs Tariff.
Dextrins and Other Modified Starches (Round 4)
Harmonized System Number(s): Heading 35.05
Harmonized System Number(s): Heading 35.05
- The risk identified is that goods could be incorrectly classified as “dextrins and other modified starches”, whereas they could be properly classified as “other sugars” of Heading 17.02. The duty rates under Heading 17.02 range from 0% to 11%.
- This verification priority was released in March 2012 and is now complete.
- A second round of verifications was released in May 2013 and is also complete.
- A third round of verifications was released in June 2015 and is also complete.
| Targeted Companies (Round 1-2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 67 | 67 | 47 | 70% | $272,632 | $848,692 | $60,400 | $1,181,994 |
- A fourth round of verifications was released in January 2017, and the results to date are included in the following table.
| Targeted Companies (Round 4) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 25 | 24 | 16 | 67% | $19,336 | $18,323 | $900 | $38,559 |
- The results of the first four rounds show that the goods that were found to be misclassified were properly re-classified under Headings 17.02, 21.06, 35.05 and 38.24 of the Customs Tariff.
Batteries (Round 3)
Harmonized System Number(s): Heading 85.06
Harmonized System Number(s): Heading 85.06
- The risk identified is that batteries may be misclassified under duty-free tariff items within Heading 85.06, whereas they should be properly classified under other tariff items within the same heading, and be subject to a duty rate of 7%.
- This verification priority was released in November 2013 and is now complete.
- A second round of verifications was released in August 2016 and is also complete.
| Targeted Companies (Round 1-2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 26 | 26 | 25 | 96% | $43,185 | $152,549 | $11,100 | $206,834 |
- A third round of verifications was released in June 2018. Results are not yet available.
- The results of the first two 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 3)
Harmonized System Number(s): Heading 64.03
Harmonized System Number(s): Heading 64.03
- The risk identified is that footwear subject to a duty rate of 18% could be misclassified under other related tariff items, such as women’s footwear valued at $30 or more per pair, which attracts a duty rate of 11%.
- This verification priority was released in March 2014 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 10 | 10 | 10 | 100% | $37,934 | $526,674 | $19,850 | $584,558 |
- A second round of verifications was released in May 2016, and a third one in July 2017, and the results to date are included in the following table.
| Targeted Companies (Round 2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 165 | 133 | 94 | 71% | $302,426 | $1,303,911 | $35,250 | $1,641,587 |
- The results of the first three rounds show that the goods that were found to be misclassified were properly re-classified under various tariff items of Heading 64.03 of the Customs Tariff.
Hair Extensions (Round 3)
Harmonized System Number(s): Heading 67.03
Harmonized System Number(s): Heading 67.03
- The risk identified is that hair extensions could be misclassified under Heading 67.03, which is duty-free, instead of being properly classified under Heading 67.04 (e.g., wigs, false beards, etc.), which attracts a duty rate of 15.5%.
- This verification priority was released in March 2014 and is now complete.
- A second round of verifications was released in November 2015 and is also complete.
| Targeted Companies (Round 1-2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 51 | 51 | 47 | 92% | $473,723 | $1,597,105 | $19,200 | $2,090,028 |
- A third round of verifications was released in January 2017 and the results to date are included in the following table.
| Targeted Companies (Round 3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 9 | 7 | 4 | 57% | $6,020 | $4,624 | $0 | $10,644 |
- The results of the first three rounds show that the goods that were found to be misclassified were properly re-classified under Heading 67.04 of the Customs Tariff.
Parts for Power Trains (Round 2)
Harmonized System Number(s): Heading 87.08
Harmonized System Number(s): Heading 87.08
- The risk identified is that goods could be incorrectly classified within Heading 87.08, instead of being properly classified under tariff item 8708.99.15 (parts for power trains for the vehicles of Heading 87.03), which attracts a duty rate of 6%.
- This verification priority was released in August 2014 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 10 | 10 | 10 | 100% | $3,472 | $77,169 | $3,750 | $84,391 |
- A second round of verifications was released in August 2016 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 8 | 6 | 4 | 67% | $0 | $382 | $2,700 | $3,082 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Heading 87.08 of the Customs Tariff.
Articles of Apparel and Clothing Accessories (Round 3)
Harmonized System Number(s): Heading 39.26
Harmonized System Number(s): Heading 39.26
- The risk identified is that goods could be incorrectly classified within Heading 39.26, which attracts lower duty rates, instead of being properly classified under tariff item 6210.40.90 (other men's or boys' garments) or 6210.50.90 (other women's or girls' garments), which are subject to the significantly higher duty rate of 18%.
- The issue is that clothing containing a layer of plastic, combined with textile fabric that is not considered as reinforcement to the plastic, should not be classified under Chapter 39.
- This verification priority was released in December 2014 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 134 | 134 | 96 | 72% | $971,750 | $1,796,608 | $39,100 | $2,807,458 |
- A second round of verifications was released in May 2016, and a third one in October 2017, and the results to date are included in the following table.
| Targeted Companies (Round 2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 72 | 52 | 37 | 71% | $154,393 | $175,632 | $5,400 | $335,425 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 42, 61, 62 and 65 of the Customs Tariff.
Articles of Plastics (Round 2)
Harmonized System Number(s): Subheading 3926.90
Harmonized System Number(s): Subheading 3926.90
- The risk identified is that articles of plastics could be incorrectly classified within Heading 39.26, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
- This verification priority was released in April 2015 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 11 | 11 | 11 | 100% | $27,377 | $161,956 | $3,450 | $192,783 |
- A second round of verifications was released in April 2017 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 11 | 9 | 8 | 89% | $82,339 | $116,562 | $1,500 | $200,401 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 39 of the Customs Tariff.
Vices and Clamps (Round 2)
Harmonized System Number(s): Heading 82.05
Harmonized System Number(s): Heading 82.05
- The risk identified is that vices and clamps could be incorrectly classified within Heading 82.05, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
- This verification priority was released in June 2015 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 22 | 22 | 18 | 82% | $34,308 | $100,265 | $15,750 | $150,323 |
- A second round of verifications was released in February 2017 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 18 | 16 | 15 | 94% | $33,716 | $119,777 | $1,350 | $154,843 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8205.70.90 of the Customs Tariff.
Parts for Use with Machinery of Chapter 84 (Round 2)
Harmonized System Number(s): Heading 84.31
Harmonized System Number(s): Heading 84.31
- The risk identified is that parts for use with certain machinery of Chapter 84 could be incorrectly classified within Heading 84.31, instead of being properly classified under various tariff items, and potentially be subject to a duty rate of 6.5%.
- This verification priority was released in June 2015 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 10 | 10 | 6 | 60% | $30,994 | $178,941 | $750 | $210,685 |
- A second round of verifications was released in October 2017 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 15 | 9 | 6 | 67% | $31,385 | $70,598 | $150 | $102,133 |
- The results of the first two rounds show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 39, 40, 70, 73, 83 and 84 of the Customs Tariff.
Tubes, Pipes and Hoses (Round 2)
Harmonized System Number(s): Heading 39.17
Harmonized System Number(s): Heading 39.17
- The risk identified is that tubes, pipes and hoses could be incorrectly classified within Heading 39.17, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
- This verification priority was released in September 2015, and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 22 | 22 | 20 | 91% | $34,598 | $201,778 | $2,400 | $238,776 |
- A second round of verifications was released in October 2017, and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 13 | 4 | 3 | 75% | $4,534 | $13,356 | $450 | $18,340 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 39.17 of the Customs Tariff.
Parts of Lamps (Round 2)
Harmonized System Number(s): Heading 94.05
Harmonized System Number(s): Heading 94.05
- The risk identified is that imported goods could be incorrectly classified as parts of lamps, within Heading 94.05, instead of being properly classified elsewhere within the same Heading, or under other Chapters, and potentially be subject to various duty rates.
- This verification priority was released in September 2015, and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 57 | 53 | 39 | 74% | $138,061 | $721,395 | $16,200 | $875,656 |
- A second round of verifications was released in February 2017 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 84 | 55 | 38 | 69% | $121,751 | $466,867 | $16,950 | $605,568 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified within Heading 94.05 or under Chapters 73, 76, 84 and 85 of the Customs Tariff.
Pasta (Round 2)
Harmonized System Number(s): Heading 19.02
Harmonized System Number(s): Heading 19.02
- The risk identified is that pasta could be incorrectly classified within Heading 19.02, which is subject to various duty rates, instead of being properly classified elsewhere within the same Heading, and potentially be subject to higher duty rates.
- This verification priority was released in November 2015 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 31 | 31 | 19 | 61% | $27,930 | $363,266 | $18,900 | $410,056 |
- A second round of verifications was released in April 2017 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 105 | 86 | 58 | 67% | $64,195 | $442,027 | $69,475 | $575,697 |
- The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 19.02 of the Customs Tariff.
Hair Dryers and Electric Smoothing Irons
Harmonized System Number(s): Heading 85.16
Harmonized System Number(s): Heading 85.16
- The risk identified is that imported goods could be incorrectly classified as hair dryers or smoothing irons within Heading 85.16, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
- This verification priority was released in November 2015, and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 35 | 33 | 13 | 39% | $26,114 | $61,248 | $1,950 | $89,312 |
- The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 85.16 of the Customs Tariff.
Cell Phone Cases (Round 2)
Harmonized System Number(s): Headings 39.26, 42.02 and 85.17
Harmonized System Number(s): Headings 39.26, 42.02 and 85.17
- The risk identified is that cell phone cases could be incorrectly classified under various tariff items within Headings 39.26, 42.02 and 85.17, whereas the goods could potentially be properly classified under tariff item 4202.32.90 (articles of a kind normally carried in the pocket or in the handbag; with outer surface of sheeting of plastics or of textile materials; other), and be subject to a duty rate of 8%.
- This verification priority was released in January 2016 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 23 | 20 | 20 | 100% | $15,980 | $625,330 | $25,350 | $666,660 |
- A second round of verifications was released in June 2018. Results are not yet available.
- The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under tariff item 4202.32.90 of the Customs Tariff.
Mountings, Fittings and Similar Articles
Harmonized System Number(s): Heading 83.02
Harmonized System Number(s): Heading 83.02
- The risk identified is that imported goods could be incorrectly classified as mountings, fittings and similar articles within Heading 83.02, instead of being properly classified under various tariff items within different chapters (for example, Chapters 73, 83, 84, 87 and 94), and potentially be subject to duty rates up to 8%.
- This verification priority was released in January 2016 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 41 | 39 | 27 | 69% | $19,496 | $225,788 | $14,850 | $260,134 |
- The results show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 39, 73, 82, 83, 84, 85, 87, 94 and 98 of the Customs Tariff.
Olive Oil (Round 2)
Harmonized System Number(s): Headings 15.09 and 15.10
Harmonized System Number(s): Headings 15.09 and 15.10
- The risk identified is that imported goods could be incorrectly classified as olive oil (under Heading 15.09) or others oils obtained solely from olives (under Heading 15.10), which are duty free, instead of being properly classified elsewhere within Chapter 15, and be subject to duty rates up to 11%.
- This verification priority was released in October 2016 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 24 | 22 | 18 | 82% | $240,783 | $490,832 | $5,400 | $737,015 |
- A second round of verifications was released in June 2018. Results are not yet available.
- The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under tariff item 1517.90.99 of the Customs Tariff.
Stone Blocks and Slabs (Round 2)
Harmonized System Number(s): Headings 25.14, 25.15 and 25.16
Harmonized System Number(s): Headings 25.14, 25.15 and 25.16
- The risk identified is that imported goods could be incorrectly classified as stone blocks and slabs under Headings 25.14, 25.15 and 25.16, which are all duty free, instead of being properly classified under various tariff items within Chapter 68, and be subject to duty rates up to 7%.
- This verification priority was released in October 2016 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 25 | 24 | 21 | 88% | $79,175 | $281,008 | $4,650 | $364,833 |
- A second round of verifications was released in December 2017 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 34 | 16 | 14 | 88% | $30,882 | $101,509 | $6,000 | $138,391 |
- The results of the first round show that the majority of the goods that were found to be misclassified were properly re-classified under Chapter 68 of the Customs Tariff.
Nails and Similar Articles of Iron or Steel
Harmonized System Number(s): Headings 73.17
Harmonized System Number(s): Headings 73.17
- The risk identified is that imported goods could be incorrectly classified as nails and similar articles of iron or steel under Heading 73.17, which is duty free, whereas the goods could potentially be properly classified under dutiable tariff items, such as 8305.20.00 (staples in strips), and be subject to a duty rate of 6.5%.
- This verification priority was released in January 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 39 | 34 | 14 | 41% | $46,101 | $111,925 | $600 | $158,626 |
- The results show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8305.20.00 of the Customs Tariff.
Castors with Mountings of Base Metal
Harmonized System Number(s): Headings 83.02
Harmonized System Number(s): Headings 83.02
- The risk identified is that imported goods could be incorrectly classified as castors with mountings of base metal under Heading 83.02, which is duty free, whereas the goods could potentially be properly classified under dutiable tariff items, such as 8716.90.99 (parts of not mechanically propelled vehicles), and be subject to a duty rate up to 6.5%.
- This verification priority was released in January 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 49 | 45 | 32 | 71% | $51,097 | $338,181 | $6,150 | $395,428 |
- The results show that the goods that were found to be misclassified were properly re-classified under tariff item 8716.90.99 or under Chapters 39, 40, 73, 84 and 94 of the Customs Tariff.
Pickled Vegetables (Round 4)
Harmonized System Number(s): Heading 20.01
Harmonized System Number(s): Heading 20.01
- The risk identified is that dill pickles or baby dill pickles may be misclassified within Heading 20.01.
- Misclassification results in an avoidance of the 8% duty payable for subheading 2001.10, which would be the appropriate classification for pickles.
- This verification priority was released in June 2012 and is now complete.
- A second round of verifications was released in August 2013, and a third one in January 2017, and they are also complete.
| Targeted Companies (Round 1-2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 58 | 58 | 35 | 60% | $113,975 | $412,668 | $21,150 | $547,793 |
- A fourth round of verifications was released in December 2017 and the results to date are included in the following table.
| Targeted Companies (Round 4) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 93 | 30 | 5 | 17% | $6,455 | $32,797 | $2,400 | $41,652 |
- The results of the first four rounds show that most of the goods that were found to be misclassified were properly re-classified under tariff items 2001.10.00 (cucumbers and gherkins) and 2005.99.90 (other vegetables) of the Customs Tariff.
Mineral Waters and Aerated Waters
Harmonized System Number(s): Heading 22.01
Harmonized System Number(s): Heading 22.01
- The risk identified is that imported goods could be incorrectly classified as mineral waters and aerated waters within Heading 22.01, instead of being properly classified elsewhere within the same chapter, and potentially be subject to a duty rate up to 11%.
- This verification priority was released in July 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 10 | 7 | 4 | 57% | $2,073 | $4,464 | $300 | $6,837 |
- The results show that most of the goods that were found to be misclassified were properly re-classified under tariff item 2201.90.00 of the Customs Tariff.
Gloves
Harmonized System Number(s): Headings 39.26 and 42.03
Harmonized System Number(s): Headings 39.26 and 42.03
- The risk identified is that imported goods could be incorrectly classified as gloves within Headings 39.26 and 42.03, instead of being properly classified within Chapter 61 or 62, and potentially be subject to higher duty rates up to 18%.
- This verification priority was released in July 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 37 | 17 | 10 | 59% | $95,479 | $220,477 | $33,100 | $349,056 |
- The results show that the goods that were found to be misclassified were properly re-classified under Chapters 39, 40, 42, 62 and 65 of the Customs Tariff.
Spent Fowl
Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
Harmonized System Number(s): Headings 02.07, 16.01 and 16.02
- The risk identified is that imported goods could be incorrectly classified as spent fowl within Headings 02.07, 16.01 and 16.02, instead of being properly classified under tariff items subject to tariff rate quotas (TRQs) within the same chapters, and potentially be subject to very high duty rates.
- This verification priority was released in July 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 68 | 51 | 13 | 25% | $1,459,975 | $116,975,421 | $53,900 | $118,489,296 |
- The results show that most of the goods that were found to be misclassified were properly re-classified as broiler chicken under Chapter 2 of the Customs Tariff.
Safety Headgear (Round 3)
Harmonized System Number(s): Subheading 6506.10
Harmonized System Number(s): Subheading 6506.10
- The risk identified is that safety headgear could be incorrectly classified under duty-free tariff items, whereas the goods could potentially be properly classified as other safety headgear under tariff item 6506.10.90, which attracts a duty rate of 8.5%.
- This verification priority was released in December 2011 and is now complete.
- A second round of verifications was released in May 2013 and is also complete.
| Targeted Companies (Round 1-2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 28 | 28 | 23 | 82% | $88,711 | $241,433 | $58,200 | $388,344 |
- A third round of verifications was released in July 2017 and the results to date are included in the following table.
| Targeted Companies (Round 3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 25 | 18 | 13 | 72% | $101,249 | $235,267 | $27,400 | $363,916 |
- The results of the first three rounds show that the vast majority of the goods that were found to be misclassified were properly re-classified under tariff item 6506.10.90 of the Customs Tariff.
Bags
Harmonized System Number(s): Heading 42.02
Harmonized System Number(s): Heading 42.02
- The risk identified is that imported goods could be incorrectly classified as bags within Heading 42.02, instead of being properly classified elsewhere within the same heading, and potentially be subject to duty rates up to 11%.
- This verification priority was released in October 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 20 | 8 | 6 | 75% | $10,721 | $95,541 | $750 | $107,012 |
- The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 42.02 of the Customs Tariff.
Import Permit Numbers
Harmonized System Number(s): Chapters 2 and 4
Harmonized System Number(s): Chapters 2 and 4
- The risk identified is that imported goods could be classified under “within access commitment” tariff items within Chapter 2 (meat of bovine animals and poultry) and Chapter 4 (dairy products), without the required import permit number on the declaration.
- Those chapters include goods that are subject to tariff rate quotas (TRQs) under Canada’s supply management system.
- TRQ goods imported without the required import permit number are properly classified under “over access commitment” tariff items and are subject to very high duty rates.
- This verification priority was released in October 2017 and the results to date are included in the following table.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 174 | 160 | 52 | 33% | $592,472 | $4,103 | $54,700 | $651,275 |
- The results show that some TRQ goods have been imported without the required import permit number and have been re-classified under “over access commitment” tariff items of the Customs Tariff.
Mountings and Fittings, Suitable for Furniture
Harmonized System Number(s): Heading 83.02
Harmonized System Number(s): Heading 83.02
- The risk identified is that 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.
- Results are not yet available.
Air Heaters and Hot Air Distributors
Harmonized System Number(s): Heading 73.22
Harmonized System Number(s): Heading 73.22
- The risk identified is that 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.
- Results are not yet available.
Flashlights and Miners’ Safety Lamps
Harmonized System Number(s): Heading 85.13
Harmonized System Number(s): Heading 85.13
- The risk identified is that 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.
- Results are not yet available.
Stone Table and Counter Tops (Round 2 - new)
Harmonized System Number(s): Heading 94.03
Harmonized System Number(s): Heading 94.03
- The risk identified is that 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 | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 13 | 13 | 13 | 100% | $57,394 | $572,086 | $3,900 | $633,380 |
- A second round of verifications was released in October 2018. Results are not yet available.
- The results of the first round show that the goods that were found to be misclassified were properly re-classified under Heading 68.02 or elsewhere within Heading 94.03 of the Customs Tariff.
Disposable and Protective Gloves (Round 4 - new)
Harmonized System Number(s): Subheadings 3926.20.91 and 4015.19
Harmonized System Number(s): Subheadings 3926.20.91 and 4015.19
- The risk identified is that disposable and protective gloves, which are duty-free if the gloves qualify for specific end-uses, may be properly classified under tariff items 3926.20.91 or 4015.19.90, which attract a duty rate of 6.5% and 15.5% respectively.
- This verification priority was released in October 2012 and is now complete.
- A second round of verifications was released in July 2013, and a third one in January 2016, and they are also complete.
| Targeted Companies (Round 1-2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 52 | 52 | 47 | 90% | $253,959 | $1,082,175 | $30,000 | $1,366,134 |
- A fourth round of verifications was released in October 2018. Results are not yet available.
- The results of the first three rounds show that the goods that were found to be misclassified were properly re-classified under tariff items 3926.20.91 and 4015.19.90, and under Headings 48.18, 62.10 and 63.07 of the Customs Tariff.
Valuation
Apparel (Round 3)
Harmonized System Number(s): Chapters 61 and 62
Harmonized System Number(s): Chapters 61 and 62
- The risk identified is that, given the high rates of duty associated with the apparel industry (Chapters 61 and 62), importers of apparel may not be in compliance with the valuation provisions of the Customs Act. The duty rates vary from 10% to 18%.
- This verification priority was released in February 2012 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 24 | 24 | 15 | 63% | $6,048,795 | $3,042,255 | $7,500 | $9,098,550 |
- A second round of verifications was released in September 2015 and a third one in April 2017. The results to date are included in the following table.
| Targeted Companies (Round 2-3) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 204 | 126 | 67 | 53% | $166,269 | $51,162,446 | $182,750 | $51,511,465 |
- The results of the first three rounds show that many goods were found to be valued incorrectly (e.g., assists were not added to the price paid or payable).
Footwear (Round 2 - new)
Harmonized System Number(s): Chapter 64
Harmonized System Number(s): Chapter 64
- Given the high rates of duty associated with footwear (Chapter 64), there is a risk that importers of footwear may not be in compliance with the valuation provisions of the Customs Act. The duty rates vary from 10% to 20%.
- This verification priority was released in February 2012 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 16 | 16 | 7 | 44% | $380,334 | $2,351,737 | $1,950 | $2,734,021 |
- A second round of verifications was released in October 2018. Results are not yet available.
- The results of the first round show that many goods were found to be valued incorrectly (e.g., freight charges and service fees were not added to the price paid or payable).
Origin
T-Shirts (Round 2)
Harmonized System Number(s): Heading 61.09
Harmonized System Number(s): Heading 61.09
- Previous verifications indicated that there was evidence that t-shirts of Heading 61.09 were not compliant with the NAFTA Rules of Origin for several reasons.
- This verification priority was released in June 2013 and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 51 | 51 | 25 | 49% | $657,514 | $1,195,583 | $5,700 | $1,858,797 |
- A second round of verifications was released in June 2016 and the results to date are included in the following table.
| Targeted Companies (Round 2) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 33 | 28 | 11 | 39% | $0 | $522,608 | $28,050 | $550,658 |
- The results of the first two rounds show that some goods classified as t-shirts do not qualify under NAFTA.
Bedding and Drapery (Round 2)
Harmonized System Number(s): Various goods of Headings 63.01, 63.02 and 63.03
Harmonized System Number(s): Various goods of Headings 63.01, 63.02 and 63.03
- The risk identified is that manufacturers in the United States of America were using fabrics not produced in the NAFTA territories as an input for bedding and drapery (under Headings 63.01, 63.02 and 63.03), but were declaring the goods as “Made in USA” in order to qualify for NAFTA.
- This verification priority was released in February 2012, and is now complete.
| Targeted Companies (Round 1) | Cases Closed | Cases in Error | % Non-Compliance | DAS Issued ($) | Self-Adjustments by Importers ($) | Penalties ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| 15 | 15 | 8 | 53% | $57,385 | $558,930 | $525 | $616,840 |
- A second round of verifications was released in December 2017. Results are not yet available.
- The results of the first round confirmed that many of the products that were verified did not qualify under NAFTA because of the inputs used in their production.
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