AUTOMOTIVE REPORT: TARIFF CHAPTER 87
CBSA'S VERIFICATION AUDITS TARGET VEHICLE TIRES
For many in the automotive industry, there is a temptation to import foreign-made goods (i.e., non-USMCA-qualifying) for use in production processes or as parts and sub-components for vehicles and automotive systems. They are often less costly.
At the same time, many of these imports attract significantly higher duty rates, which can create pressures to classify them under potentially alternative tariff headings with lower rates of duty.
Our recent file experience has demonstrated that this is often a short-lived strategy, as the CBSA’s verification procedures will eventually put these classification decisions to the ultimate test.
Tagged in:
Administrative Monetary Penalty
Chapter 87
Statements of Adjustment
Tariff Classification
Verification Audits
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