Recently we’ve noticed an uptick in the number of Canada Border Services Agency (“CBSA”) audits regarding the tariff classification of gloves (see our prior blog). With its mid-year update, the CBSA has officially upgraded this focus to a Trade Compliance Verification Priority!
This marks the third time gloves have been a “verification priority” having previously been in the spotlight in 2017 and 2019. The results from the first two rounds revealed that 82% of the 49 companies targeted were non-compliant, resulting in reclassification duties and penalties totalling over $2.6 million.