{"id":4406,"date":"2019-02-06T10:12:02","date_gmt":"2019-02-06T15:12:02","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=4406"},"modified":"2019-02-06T10:12:02","modified_gmt":"2019-02-06T15:12:02","slug":"canadian-customs-audit","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/canadian-customs-audit\/","title":{"rendered":"So You\u2019re Being Audited: Canadian Customs Audits"},"content":{"rendered":"

Being audited is a stressful affair \u2014 and it can feel especially stressful if you know<\/i> you\u2019ve been compliant. You\u2019ve filled out all the right paperwork and your customs broker has applied all the right tariff codes \u2014 what\u2019s gone wrong?<\/p>\n

Probably nothing.<\/p>\n

If you\u2019ve been selected for a customs audit, there\u2019s no need to panic. You\u2019re not necessarily being singled out for any wrongdoing. The Canadian Border Services Agency (CBSA) uses audits as a way to investigate potential issues, not as an automatic punishment.<\/p>\n

Canadian customs audits don\u2019t need to be scary and stressful. We\u2019ve created a guide to show you how they work and what to do if you find your company being audited.<\/p>\n

Being Targeted for an Audit<\/h2>\n

If you\u2019ve been targeted for an audit, it\u2019s likely for one of two reasons: either you\u2019ve been selected for a random spot check, or you\u2019re working with goods that the CBSA has made a priority target.<\/p>\n

Random verification checks are done throughout the year to encourage voluntary compliance. They may also be performed for risk assessment. If you believe you\u2019ve been fully compliant and the goods you work with aren\u2019t verification targets, it\u2019s likely you\u2019ve been randomly selected.<\/p>\n

At set points throughout the year, Canadian Border Services Agency (CBSA) identifies imports that it wishes to target for audits and then conducts surveys based on those targets. Goods on the verification priority list<\/a> are being assessed for tariff classification, valuation, and origin accuracy so that the CBSA can get a comprehensive look at the current status of the selected imports.<\/p>\n

Multiple rounds of verification may be conducted for the same item if non-compliance in a sector is particularly high. In October of 2018, disposable gloves were added to the list for a fourth-round of audits. As of 2019, disposable gloves have been a verification priority for over six years.<\/p>\n

Another reason the CBSA would target you for an audit might have to do with suspected wrongdoing, such as tariff misclassification or poor intellectual property controls. This is the kind of audit you don\u2019t <\/i>want \u2014 it\u2019s much harder to pass an audit targeted <\/i>at your compliance rather than a random check or a verification priority.<\/p>\n

To make sure you\u2019ve never targeted for potential noncompliance, you should be conducting your own compliance checks regularly.<\/p>\n

Tips for a Smooth Audit<\/h2>\n

Once you\u2019ve been selected for an audit, you\u2019ll have 30 days to send the CBSA the selected documents. You should do so as soon as possible. Don\u2019t wait until the last possible day to give the CBSA what they need. First, though, make sure you sign the letter of authorization for your customs broker and inform them you\u2019re being audited.<\/p>\n

Don\u2019t volunteer more information then requested by the CBSA at the beginning stages. If you insist that your operations haven\u2019t changed, that will lead to the agency requesting more information and deepening their audit, not letting you off the hook. The CBSA was created to assess risk, not get to know you personally. Simply send them what they need when requested.<\/p>\n

As soon as you receive notice you\u2019re being audited, it\u2019s important not to make any additional changes to your records. Even if everything you\u2019re doing is above board, it will look suspicious and could get you into trouble.<\/p>\n

Finally, once you receive a letter from CBSA with their findings, you have 30 days to provide supplemental information. While you still shouldn\u2019t supply the CBSA with your company\u2019s entire archive \u2014 they\u2019re busy! \u2014 this is where you can volunteer information that will potentially influence the final decision. Your customs broker can advise you on the best way to proceed.<\/p>\n

Contact a Customs Broker<\/h2>\n