The Canada Border Services Agency (CBSA) regularly conducts trade verifications to ensure importers and exporters are compliant with various rules and regulations.
The CBSA manages this program primarily by conducting audits and other verification activities in the areas of tariff classification, valuation, and origin.
To monitor for compliance, the CBSA primarily uses two methods:
- Random verification, which is designed to measure compliance rates and assess potential revenue loss
- A list of verification priorities, which are determined through risk-based assessment processes
The verification priorities list (i.e., the CBSA “Hit List”) is helpful guidance for importers concerned about the potential risk associated with a compliance verification audit, as it details specific types of imported goods on which the CBSA intends to focus its compliance efforts.
The CBSA recently published its latest verification priorities (updated January 2025), and this year’s list contains several interesting items, including:
- Tariff classification of frozen desserts containing 5% dairy products
- Tariff classification of gloves (the third round of verification for certain items)
- Proper use of goods and services tax (GST) exemption codes
- Application of excise duty to vaping products
- License verification for importers of supply-managed goods
- Confirmation of origin of goods imported under both the Canada-European Union Comprehensive Economic and Trade Agreement and the Canada-United Kingdom Trade Continuity Agreement
- Assurance that Most-Favoured-Nation treatment is withdrawn from Russia and Belarus
- Application of the China Surtax Order (2024) to electric vehicles, steel, and aluminum
The full priorities list can be found on the CBSA website.
If you are selected for an audit and the CBSA identifies a compliance issue, corrective measures to your import documentation will be required for up to four years. Importers can avoid or mitigate potential audit issues by reviewing the priorities list and addressing any compliance concerns. Consider reviewing your internal processes in those areas to help ensure compliance and avoid the potential imposition of penalties under the Administrative Monetary Penalty System (AMPS). To learn more about the AMPS, please see our article The Importance of Complying with Customs Legislation.
Our team of customs duty professionals can assist your organization with a customs review to improve your trade compliance, prevent the overpayment of customs duty, and identify potential exposures.
If you have any questions or concerns about imports into Canada, please contact the Ryan Customs team.
Maureen Gilfoy
Director, Customs Duty
maureen.gilfoy@ryan.com
Sebastian Drozdziewicz
Senior Manager, Customs Duty
sebastian.drozdziewicz@ryan.com
- Topics
- Customs Duty
- Federal