CBSA TARGETING CARPETS AND AREA RUGS?
VERIFICATION AUDITS FOCUSING ON CLASSIFICATION UNDER CHAPTER 57
Download a PDF copy of this Blog here.
A good part of our Tax and Trade practice involves advising Clients in the Textiles industry on matters involving Canadian customs duties and taxation on imported goods.
Recently, we have seen an increase in Canada Border Services Agency (“CBSA”) verification audits and assessments involving carpets and area rugs. One focal point seems to be the application of Tariff Chapter 57 of the Customs Tariff (“CT”), which contains many of the Harmonized System (“HS”) Classification codes for carpets and similar textile floor coverings. Improper tariff classification can lead to significant duty assessments and penalties, even for importers who have “always used” a particular tariff code without issue.