CBSA Confirms Audits Underway on Surtax Payments for Imports From US

The Canada Border Services Agency is looking closely at surtax payments due on imports from the U.S. that were required as part of Canada's retaliatory tariffs, a CBSA spokesman said May 17. "The CBSA has been analysing import data and conducting compliance activities to verify that the correct amount of surtax was paid by importers since the summer of 2018," the spokesman said by email. "These activities are continuing on an ongoing basis and additional assessments of surtax owing are issued where appropriate." KPMG recently noted an uptick in CBSA audits on the surtaxes (see 1905130062).

Canada's retaliatory tariffs have been in place since July last year and CBSA is responsible for "administration and enforcement of the surtax orders," the spokesman said. "The importer becomes liable to pay surtax on goods subject to a surtax order upon the importation of the goods. Payment of surtax is made in the same way and within the same prescribed time that customs duties and taxes are paid. For commercial goods, the importer is liable to self-assess the surtax on goods subject to the surtax order upon the importation and final accounting of the goods."

The CBSA is authorized to confirm compliance with the payment requirements, the spokesman said. "At any time after the importation, a designated CBSA officer may verify that the correct amount of surtax has been paid (on the basis of a combination of tariff treatment, country of origin, marking, description, tariff classification, place of export, value for duty) and re-assess the importation for the unpaid amount," he said. "The resulting duty, taxes or surtax owing could be assessed retroactively for a period of up to four years."