Notice for importers: Cannabis

Despite legalization in Canada, only Health Canada retains the authority to issue permits or grant exemptions to import or export cannabis, under very limited circumstances. For importers with the Health Canada granted authority, please refer to Customs Notice 18-19 on calculating cannabis duty and additional cannabis duty imposed on packaged cannabis products. For more information, consult cannabis (marijuana) legalization.

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The CBSA manages trade compliance with the Tariff Classification, Valuation, and Origin programs using the following 2 post-release verification processes:

  1. Random verifications
  2. Verification priorities

Random verifications

Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including:

Verification priorities

Targeted verification priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years. The current verification priorities are:

Tariff Classification

Spent fowl (Round 2)
Harmonized System Number(s): Headings 02.07, 16.01 and 16.02

Results of first round of verifications for spent fowl
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
68 68 30 44% $178,557,738 $127,650 $178,685,388

LED lamps
Harmonized System Number(s): Heading 85.39

Results of first round of verifications for LED lamps
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
27 3 3 100% $84,135 $0 $84,135

Furniture for non-domestic purposes (Round 3)
Harmonized System Number(s): Headings 94.01 and 94.03

Results of first round of verifications for furniture for non-domestic purposes
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
25 25 15 60% $931,753 $1,050 $932,803
Results of second and third round of verifications for furniture for non-domestic purposes
Targeted companies (Round 2-3) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
108 51 44 86% $1,772,972 $86,300 $1,859,272

Batteries (Round 4)
Harmonized System Number(s): Heading 85.06

Results of first, second and third round of verifications for batteries
Targeted companies (Round 1-2-3) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
36 36 35 97% $278,908 $66,550 $345,458

Footwear ($30 or more per pair) (Round 4)
Harmonized System Number(s): Heading 64.03

Results of first, second and third round of verifications for footwear ($30 or more per pair)
Targeted companies (Round 1-2-3) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
175 175 134 77% $2,686,278 $148,450 $2,834,728
Results of fourth round of verifications for footwear ($30 or more per pair)
Targeted companies (Round 4) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
20 13 6 46% $25,899 $4,300 $30,199

Articles of apparel and clothing accessories (Round 3)
Harmonized System Number(s): Heading 39.26

Results of first and second rounds of verifications for articles of apparel and clothing accessories
Targeted companies (Round 1-2) Cases closed Cases in error Percentage non-compliance Duty Assessed (dollars) Penalties (dollars) Total (dollars)
185 185 136 74% $3,830,566 $54,050 $3,884,616
Results of third round of verifications for articles of apparel and clothing accessories
Targeted companies (Round 3) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
20 19 15 79% $143,677 $4,650 $148,327

Parts of lamps (Round 4)
Harmonized System Number(s): Heading 94.05

Results of first and second round of verifications for parts of lamps
Targeted companies (Round 1-2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
141 141 106 75% $1,958,689 $61,600 $2,020,325
Results of a third round of verifications for parts of lamps
Targeted companies (Round 3) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
66 55 34 62% $536,590 $55,000 $591,590

Pasta (Round 3)
Harmonized System Number(s): Heading 19.02

Results of first and second rounds of verifications for pasta
Targeted companies (Rounds 1-2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
136 136 96 71% $1,375,902 $117,475 $1,493,377

Cell phone cases (Round 3)
Harmonized System Number(s): Headings 39.26, 42.02 and 85.17

Results of first and second round of verifications for cell phone cases
Targeted companies (Round 1-2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
39 39 36 92% $2,972,835 $46,250 $3,019,085

Pickled vegetables (Round 5)
Harmonized System Number(s): Heading 20.01

Results of first, second and third round of verifications for pickled vegetables
Targeted companies (Rounds 1-2-3) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
58 58 35 60% $526,643 $21,150 $547,793
Results of fourth round of verifications for pickled vegetables
Targeted companies (Round 4) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
93 92 56 61% $620,319 $74,800 $695,119

Gloves (Round 2)
Harmonized System Number(s): Headings 39.26 and 42.03

Results of first round of verifications for gloves
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
37 36 27 75% $2,047,468 $38,800 $2,086,268

Bags (Round 2)
Harmonized System Number(s): Heading 42.02

Results of first round of verifications for bags
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
20 20 16 80% $1,426,432 $4,050 $1,430,482
Results of second round of verifications for bags
Targeted companies (Round 2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
40 21 12 57% $683,000 $4,000 $687,000

Import permit numbers (Round 2)
Harmonized System Number(s): Chapters 2 and 4

Results of first round of verifications for import permit numbers
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
174 174 60 34% $635,946 $56,050 $691,996
Results of second round of verifications for import permit numbers
Targeted companies (Round 2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
224 223 147 66% $2,595,404 $705,250 $3,300,654

Other mountings and fittings, suitable for furniture (Round 2)
Harmonized System Number(s): Heading 83.02

Results of first round of verifications for other mountings and fittings, suitable for furniture
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
16 15 15 100% $322,079 $20,500 $342,579

Air heaters and hot air distributors (Round 2)
Harmonized System Number(s): Heading 73.22

Results of first and second round of verifications for air heaters and hot air distributors
Targeted companies (Round 1-2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
43 35 29 83% $388,781 $24,550 $413,331

Flashlights and miners’ safety lamps (Round 2)
Harmonized System Number(s): Heading 85.13

Results of first round of verifications for flashlights and miners’ safety lamps
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
10 10 7 70% $1,018,101 $50,650 $1,068,751
Results of second round of verifications for flashlights and miners’ safety lamps
Targeted companies (Round 2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
27 10 6 60% $128,611 $0 $128,611

Stone table and counter tops (Round 2)
Harmonized System Number(s): Heading 94.03

Results of first round of verifications for stone table and counter tops
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
13 13 13 100% $629,480 $3,900 $633,380
Results of second round of verifications for stone table and counter tops
Targeted companies (Round 2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
8 6 3 50% $65,320 $29,500 $94,820

Disposable and protective gloves (Round 4)
Harmonized System Number(s): Subheadings 3926.20 and 4015.19

Results of first, second and third round of verifications for disposable and protective gloves
Targeted companies (Rounds 1-2-3) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
52 52 47 90% $1,336,134 $30,000 $1,366,134
Results of fourth round of verifications for disposable and protective gloves
Targeted companies (Round 4) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
10 8 4 50% $582 $1,000 $1,582

Parts of machines and mechanical appliances
Harmonized System Number(s): Heading 84.79

Results of first round of verifications for parts of machines and mechanical appliances
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
14 12 9 75% $41,529 $12,000 $53,529

Other chemical products
Harmonized System Number(s): Heading 38.24

Results of first round of verifications for other chemical products
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
18 13 9 69% $34,583 $2,000 $36,583

Valuation:

Apparel (Round 4
Harmonized System Number(s): Chapters 61 and 62

Results of first and second round of verifications for apparel
Targeted companies (Rounds 1-2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
143 143 86 60% $65,970,233 $216,300 $66,186,533
Results of third round of verifications for apparel
Targeted companies (Round 3) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
85 81 43 53% $19,557,450 $98,900 $19,656,350

Footwear (Round 2)
Harmonized System Number(s): Chapter 64

Results of first round of verifications for footwear
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
16 16 7 44% $2,732,071 $1,950 $2,734,021
Results of second round of verifications for footwear
Targeted companies (Round 2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
63 48 26 54% $1,500,987 $19,000 $1,519,987

Origin:

Bedding and drapery (Round 2)
Harmonized System Number(s): Various goods of Headings 63.01, 63.02 and 63.03

Results of first round of verifications for bedding and drapery
Targeted companies (Round 1) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
15 15 8 53% $616,315 $525 $616,840
Results of second round of verifications for bedding and drapery
Targeted companies (Round 2) Cases closed Cases in error Percentage non-compliance Duty assessed (dollars) Penalties (dollars) Total (dollars)
22 21 9 43% $1,145,865 $68,950 $1,214,815

If you have any questions regarding this list, please send an email to the following address: cbsa.trci-erecio.asfc@cbsa-asfc.gc.ca

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