The Canada Border Services Agency (CBSA) has released a detailed outline of its verification priorities for 2025, specifically aimed at enhancing compliance with trade regulations. Here’s an in-depth look at what your business needs to know to stay ahead:

Focus on Trade Agreement Compliance:

Customs authorities will intensify verifications related to Free Trade Agreements (FTAs) to ensure that products meet origin criteria for duty-free or reduced-rate benefits. Businesses should prepare for thorough reviews of their supply chains and documentation.

Data-Driven Verifications:

The Canada Border Services Agency (CBSA) is leveraging advanced data analytics to identify non-compliance. Accurate record-keeping is essential, with tools like the Customs Action Management System (CARM) being utilized alongside Trade Advisory Notices (TAN), Compliance Validation Letters (CVL), and Direct Compliance Letters (DCL) to ensure businesses understand compliance requirements.

Spotlight on Undervalued Goods: 

Special attention will be given to undervalued and misdeclared imports, particularly in e-commerce, high-volume shipments, and non-resident importer (NRI) transactions. Importers are urged to accurately declare values to avoid audits and penalties, as the CBSA aims to ensure fair practices and prevent revenue loss.

You can find the latest publication of CBSA’s verification priorities here: https://www.cbsa-asfc.gc.ca/import/verification/menu-eng.html.

While many of the priorities are being revisited for subsequent rounds, here are some new noteworthy compliance priorities:

• Verifications regarding the classification of frozen desserts containing 5% or more dairy products.
• Compliance with Goods and Services Tax (GST) and excise duties and taxes.
• Import origin verifications under the Comprehensive Economic and Trade Agreement (CETA) and Canada-United Kingdom Trade Continuity Agreement (CUKTA).
• The China Surtax Order (2024) concerning electric vehicles.
• The China Surtax Order (2024) regarding steel and aluminum.

How Tradewin Can Help:

Navigating CBSA verifications can be complex, but preparation is key. Our team of professional consultants is here to ensure your business:

- Remains compliant with all trade regulations.
- Is prepared for potential audits or reviews.
- Maximizes duty savings under FTAs.
- Avoids delays, AMPS (penalties), and reputational risks.

Let’s get your company’s compliance strategy ready for 2025! Please contact Tradewin for assistance..