Thompson Ahern-CSCB Trade Compliance Integrity July 2008a


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CSCB Trade Compliance Targets 2007-2009

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Thompson Ahern-CSCB Trade Compliance Integrity July 2008a

  1. 1. Trade Compliance & Integrity Existing & Future National Priorities for Trade Compliance CSCB Information Updated as of July 2008
  2. 2. <ul><li>Volumes and Value for Duty of imports and exports continue to increase significantly year over year. </li></ul><ul><li>Non-compliance levels have kept pace. </li></ul>Introduction
  3. 3. <ul><li>CBSA determined that new approach to compliance was needed. </li></ul><ul><li>Objective of the new compliance program is: </li></ul><ul><ul><li>Conducive to compliance improvement and national consistency. </li></ul></ul><ul><ul><li>Cohesive, integrated and risk based. </li></ul></ul><ul><ul><li>Flexible enough to adapt going forward. </li></ul></ul>CBSA Compliance Objectives
  4. 4. <ul><li>The responsibility for compliance belongs to everyone: importers, exporters, various service providers and CBSA. </li></ul><ul><li>Most effective approach is to work together. </li></ul><ul><li>Accurate trade information is key to: </li></ul><ul><ul><li>The government in making decisions such as fiscal policy and the negotiation of favourable trade agreements. </li></ul></ul><ul><ul><li>The trade community in making sound business decisions related to exploiting prime markets, focusing product development and supporting requests for relief from the dumping of foreign goods in Canada. </li></ul></ul>Compliance Through Partnership
  5. 5. <ul><li>The CBSA’s “trade compliance continuum” acknowledges that there are various states of “compliance” and that different responses may be needed. </li></ul><ul><li>For example: </li></ul><ul><ul><li>Where clients comply voluntarily, trade facilitation is often the best approach. </li></ul></ul><ul><ul><li>Where non-compliance is identified, a mix of trade facilitation and verification provides clients with the actions that must be taken to become and stay compliant. </li></ul></ul><ul><ul><li>In addition, to enforce compliance and provide a clear deterrent to non-compliance, sanctions such as administrative penalties, seizure and criminal prosecution are sometimes the most appropriate responses. </li></ul></ul>Trade Compliance Continuum
  6. 6. <ul><li>The CBSA’s approach to compliance is intended to: </li></ul><ul><ul><li>Bring together individual compliance efforts in a comprehensive compliance management plan. </li></ul></ul><ul><ul><li>Continue to include two primary processes: </li></ul></ul><ul><ul><ul><li>Measurement of overall compliance rates. </li></ul></ul></ul><ul><ul><ul><li>Correction of identified non-compliance. </li></ul></ul></ul><ul><ul><li>Focus resources appropriately. </li></ul></ul><ul><ul><li>Set priorities based on risk and address them through an appropriate mix of trade facilitation, verification and enforcement. </li></ul></ul><ul><ul><li>Use results to further compliance efforts. </li></ul></ul>Trade Compliance Strategies
  7. 7. <ul><li>CBSA trade compliance priorities are based on risk. </li></ul><ul><li>Priorities for trade facilitation and verification include those listed on the following slides… </li></ul>Risk-Based Priorities
  8. 8. <ul><li>Cornerstone messages related to the basic elements of importing and exporting goods such as: </li></ul><ul><ul><li>Reporting </li></ul></ul><ul><ul><li>Release and accounting </li></ul></ul><ul><ul><li>Major trade programs: origin, value and classification </li></ul></ul><ul><ul><li>Administrative Monetary Penalty System (AMPS) </li></ul></ul><ul><li>Focused messages related to specific priorities: </li></ul><ul><ul><li>Tariff classification (HS Compliance) </li></ul></ul><ul><ul><li>Exports </li></ul></ul><ul><ul><li>Importing vehicles </li></ul></ul><ul><ul><li>Cross-borders shopping/Leisure Travel </li></ul></ul>Trade Facilitation Priorities
  9. 9. <ul><li>In 2007-2008 four national priorities were selected based on the need to correct non-compliance related tariff classification: </li></ul><ul><ul><ul><li>Furniture Parts </li></ul></ul></ul><ul><ul><ul><li>Sawn Lumber </li></ul></ul></ul><ul><ul><ul><li>Gloves </li></ul></ul></ul><ul><ul><ul><li>Soap </li></ul></ul></ul>Compliance Verification Priorities
  10. 10. <ul><li>For 2008-2009 12 national priorities for verification: </li></ul>Compliance Verification Priorities Tariff Classification Verification 1. Juice Products Origin Verification 2. Large Household Appliances 3. Company “X” (Cannot be disclosed) 4. Sport/Fishing Equipment 5. Swimming Pools 6. Air Conditioners Valuation Verification 7. Large Household Appliances 8. Video (DVD) Recording Apparatus 9. Large Household Appliances 10. Gas Turbine Parts 11. Bulk Shipments of Ore 12. Light-Duty Automotive Goods
  11. 11. Thompson, Ahern & Co. Ltd. Ron Stefaniuk • Consulting Department 6299 Airport Road, Suite 506 Mississauga, Ontario, L4V 1N3 Phone: (905) 677-3471 • Fax: (905) 677-3464 Contact Information