Law Firm Warns of Upcoming Customs Scrutiny for Canadian Imports

Canadian traders should prepare for increased scrutiny from the country’s customs agents for a range of imports in the coming months, and should consider conducting an “internal compliance review” to make sure they’re complying with all duties and trade laws, Baker McKenzie said in a July 25 client alert.

Canada recently announced its compliance priorities for the third and fourth quarters of this year, which highlights the imports that Canadian customs could “closely scrutinize,” the firm said, including by reviewing their declared tariff classification, value and origin. The list includes imports of certain frozen desserts, gloves, spent fowl, freezers and freezing equipment, washers and dryers, lamps, LED lights, furniture and bicycle parts.

Baker McKenzie said the Canada Border Services Agency could begin “targeted verifications” on those imports and issue compliance notices such as “trade advisory notices, compliance validation letters, and directed compliance letters.” The firm warned that once CBSA has issued a notification letter to begin a trade compliance verification, an importer can no longer earn possible benefits from the country’s voluntary disclosure program. “If non-compliance is uncovered throughout the course of a verification,” the firm said, “an importer may be subject to [penalties] and interest at the higher (specified) rate.”