The CBSA has updated the July 2024 Trade Compliance Verification priorities.
The updated Trade Compliance Verification priorities can be found below:
Tariff Verification
Gloves Round 3 New
Harmonized System Number(s): Headings 39.26 and 42.03
Risk identified: Imported goods could be incorrectly classified as gloves within Headings 39.26 and 42.03, instead of being properly classified within Chapter 61 or 62, and potentially be subject to higher duty rates up to 18%.
Bags Round 3
Harmonized System Number(s): Heading 42.02
Risk identified: Imported goods could be incorrectly classified as bags within Heading 42.02, instead of being properly classified elsewhere within the same heading, and potentially be subject to duty rates up to 11%.
Spent fowl Round 3
Harmonized System Number(s): Heading 02.07, 16.01 and 16.02
Risk identified: Imported goods could be incorrectly classified as spent fowl within Headings 02.07, 16.01 and 16.02, instead of being properly classified under tariff items subject to tariff rate quotas (TRQs) within the same chapters, and potentially be subject to very high duty rates.
Freezers and other freezing equipment
Harmonized System Number(s): Heading 84.18
Risk identified: Imported goods could be incorrectly classified as freezers and other freezing equipment under duty-free tariff items within Heading 84.18, instead of being properly classified elsewhere within the same heading and be subject to duty rates up to 8%.
Washers and dryers
Harmonized System Number(s): Headings 84.50 and 84.51
Risk identified: Imported goods could be incorrectly classified as washers and dryers under duty-free tariff items within Headings 84.50 and 84.51, instead of being properly classified elsewhere within the same headings and be subject to a duty rate of 8%.
LED lamps Round 2
Harmonized System Number(s): Heading 85.39
Risk identified: Imported goods could be incorrectly classified as light-emitting diode (LED) lamps under Heading 85.39, instead of being properly classified under Heading 94.05, and be subject to a duty rate of 7%.
Furniture for non-domestic purposes Round 4
Harmonized System Number(s): Headings 94.01 and 94.03
Headings 94.01 (Seats) and 94.03 (Other furniture and parts thereof) classify furniture for domestic purposes or other furniture for non-domestic purposes.
Risk identified: is that goods may be misclassified as furniture for non-domestic purposes, which is duty-free, instead of furniture for domestic purposes, which attracts a duty rate up to 9.5%.
Bicycle parts Round 3
Harmonized System Number(s): Heading 87.14
Risk identified: Bicycle related goods could be incorrectly classified within Heading 87.14, instead of being properly classified elsewhere within the same chapter, and potentially be subject to various duty rates up to 13%.
Indicator panels and light-emitting diodes (LED)
Harmonized System Number(s): Headings 85.31 and 85.41
Risk identified: Imported goods could be incorrectly classified as indicator panels or light-emitting diodes (LED) under Headings 85.31 and 85.41, instead of being properly classified under Headings 85.28 or 94.05, and be subject to duty rates up to 7%.
Disposable and protective gloves Round 5
Harmonized System Number(s): Subheadings 3926.20 and 4015.19
Risk identified: Disposable and protective gloves, which are duty-free if the gloves qualify for specific end-uses, may be properly classified under tariff items 3926.20.91 or 4015.19.90, which attract a duty rate of 6.5% and 15.5% respectively.
Valuation
Apparel Round 4
Harmonized System Number(s): Chapters 61 and 62
Risk identified: Given the high rates of duty associated with the apparel industry (Chapters 61 and 62), importers of apparel may not be in compliance with the valuation provisions of the Customs Act. The duty rates vary from 10% to 18%.
Origin
Bedding and drapery Round 3
Harmonized System Number(s): Headings 63.01, 63.02 and 63.03
Risk identified: Manufacturers in the United States of America were using fabrics not produced in the former North American Free Trade Agreement (NAFTA) territories as an input for bedding and drapery (under Headings 63.01, 63.02 and 63.03), but were declaring the goods as “Made in USA” in order to qualify for NAFTA. A third round of verification was released in October 2023. It will focus on imports made under the new Canada-United States-Mexico Agreement (CUSMA), which was implemented in 2020. Results are not yet available.