During a visit to a potential client, we noticed that their current broker was classifying unassembled furniture as ‘parts’ in their import documentation.
Due to the fact that the client was classifying his product as separate parts rather than one whole, he had to constantly go back and adjust previous entries if there was a change that needed to be made in the documentation. This became a tedious endeavor that ended up costing the client much unnecessary time and effort.
We informed the client that due to CBSA regulations (specifically D10-14-38), despite the furniture being imported unassembled, it must be classified as a whole if the parts can be assembled into a finished product.
Although the client now had to pay duty on the finished product where it was duty free before, it was in the client’s best interest to classify correctly and adjust previous entries. That way, they would not be subject to costly penalties for incorrect classification when CBSA performs an import audit.