Importers in the retail and consumer products sectors should be carefully reviewing their trade compliance policies and procedures as Canada Border Services Agency (CBSA) is scrutinizing customs compliance in a number of areas — including declarations of origin, tariff classification and customs valuation.

Failure to meet these requirements under the Customs Act (Act) can result in the imposition of administrative monetary penalties, seizures and ascertained forfeitures, the assessment of duties, taxes and penalizing interest, and the denial of duty-free access to the Canadian market. Of particular concern for retailers with just-in-time business models, non-compliance significantly disrupts cross-border product flow and can cause lengthy and costly delays in getting your product into the hands of Canadian consumers.

Getting the Price Right: Customs Valuation Vulnerabilities

In particular, we are observing increased CBSA audit and enforcement activity regarding customs valuation i.e., the value of goods declared for purposes of calculating customs duties and taxes owing on importation. In this context, common areas of compliance vulnerability include...

About Us

McCarthy Tétrault’s International Trade & Investment Law Group has significant experience and knowledge in dealing with trade and customs issues that are specific to the retail and consumer products sector and is available to advise on any related enforcement, compliance and strategic planning issues.