Some people never experience an audit, while others can feel as though they’re being unfairly and disproportionately picked on by customs. Whilst random audits do take place, certain imports are frequently misclassified and therefore run a greater risk of attracting the investigative attentions of the Canada Border Services Agency (CBSA). Take a look at the latest Trade Compliance Verifications List to see if you deal in any of the items mentioned.
Regardless of whether your products or industry are susceptible to the risk of audit, all importers are wise to prepare for this possibility. If customs agents do come a knocking at your door for audit purposes, you’ll want to ensure that your import records are all in order.
There are many ways you can avoid falling into the same traps that commonly befall other importers. Here are some of the most relevant and achievable:
The CBSA plays fair and has no interest in creating problems where problems don’t exist. So, if you follow the steps above and conscientiously comply with declaration procedures, requirements and record-keeping, you’re unlikely to encounter any difficulties.
If, however, anomalies, errors or shady dealings are discovered during an audit, there will be a price to pay. This will come in the form of penalties, interest and other sanctions, such as possible retraction of importing privileges. The CBSA is entitled to go back 4 years to collect unpaid taxes and duties, which can really eat into your bottom line.
If you have worries about your compliance record, one of the most sensible and straightforward ways to verify previous documentation and ensure future compliance is via the services of a broker. Taking these measures proactively, in advance of any potential problems, will help keep you import activities on the straight and narrow.
Orbit Brokers are a Toronto-based brokerage firm, one of whose fields of expertise is helping clients escape the sanctions and penalties imposed by auditors due to faulty declarations. We can help you ensure that your products are classified and valued correctly as well as properly documented so that you don’t lose sleep over the prospect of an adverse audit. Avoid needless exposure by Contacting Us and letting us help guide you through the dos and don’ts!