BSA Compliance Audits
The second blog in this series deals with the customs audit process.
The first step occurs when CBSA notifies importers in writing directly via mail. The letter informs the importer that an audit is being done and the product(s) that is being investigated. It will identify the time frame that they are investigating (called the verification period) and request a few things from the importer.
– B3 recap sheet (if available)
– Packing list
– Manufacturing info
– Product literature
Included in this letter is a request to share info with your broker. We always recommend checking the sharing option so that your broker is included on all communications.
Once the info is provided to the officer they will conduct their audit.
The second part of the process occurs when they complete their preliminary investigation and send an interim report. This communication will inform you of their findings and allow you one month to comment or dispute their findings. CBSA will detail how they reached their decision and what they feel the entry should look like. Should you choose to dispute their findings, you will need to provide sound reasoning.
The next step is the final report. This report will either finalize the interim report or they will adjust their findings based on your input prompted by the interim report. Should they find an issue, corrections will be required for all the same products imported within the aforementioned verification period within 90 days from the date of the final report. Penalties could also be issued.
Having been in business for over 25 years, Orbit Brokers has helped many importers deal with verification audits and subsequent adjustments. Contact us if you have questions regarding an audit, or if you require corrections to be made.