Don't Get Blindsided by a Customs Audit
For a small or medium-sized importer, there is nothing worse than to go through a customs audit that reveals underpayment of duty. Frustratingly, the issue could be something that is not (and was never) in your control such as your vendor completing a NAFTA certificate without understanding NAFTA rules. If that were to happen, and if your NAFTA claim is found to be invalid, CBSA can go back four years to collect duties and taxes that should have been paid.
Let's play that scenario out: You have already determined your costing, assuming that your product was duty-free under NAFTA, and sold your goods. You cannot go back to your customers and tell them that there was a mistake and you need to collect more money from them. No, this unforeseen error would come directly out of your profits. That's not to mention that there could be Administrative Monetary Penalties (AMPS) applied.
The risk of the unknown can be detrimental to your company's sustainability. It is a far better investment to pro-actively have an expert like Welke Customs Brokers review your products and documentation to ensure that:
- Your products are classified correctly;
- You have the proper supporting documentation to apply preferential tariff treatments;
- The proper values are declared; and
- You are taking advantage of all the programs available to you.
Don't be caught unaware and think you will never undergo a customs audit. Ensure your import information is accurate and compliant by contacting Welke today!