What importers need to know

The Canada Border Services Agency (CBSA) currently has three tools to assist in the imposition of import compliance. While they are a lighter version of a formal compliance verification audit, each one requires a certain level of CBSA action. 

The Three Tools

• Trade Advisory Notice (TAN)
  This is a letter to an importer requesting that they review an import declaration where there is a potential instance of non-compliance. The TAN provides guidance and is used as a resource for the importer. It carries no penalty or other monetary assessment and is purely for guidance. 
  
  
• Compliance Verification Letter (CVL)
  This is a letter to an importer requesting information on an imported item or a specific import declaration where the CBSA suspects an instance of non-compliance. The importer has 30 days to comply with the request for information to the CBSA. A monetary assessment will follow in the event of an instance of non-compliance. 
  
  
• Directed Compliance Letter (DCL)
  This letter is sent to an importer with a monetary assessment to address an instance or instances of known non-compliance.

The CBSA uses these as exploratory tools

• The TAN is a subtle warning.
• The CVL is less subtle where the importer is required to provide technical information on a specific item or a selected import declaration.
• The DCL reassessment of duty and or taxes and a potential penalty without prior notice.

While they are less time consuming than formal compliance verification audits, they still carry serious ramifications as outlined above. Similar to formal audits, an importer has the right to appeal or request recourse as with any trade verification action under the provisions of the Customs Act.

Tradewin has experience with all of these verification tools and formal compliance verification audit and we can assist with any correspondence from the CBSA. Don’t hesitate. We’re here to help.