The process of handling a customs verification can be an
extraordinarily difficult undertaking for the uninitiated.
Part I of this bulletin outlined how to prepare for a
verification, what the government is looking for, the primary
considerations for company counsel, and common issues that arise.
Part II below discusses what happens if one fails a
verification.
Consequences Of Failing
The consequences of failing a verification can be significant.
They may include: a duty assessment; an adverse decision which may
affect future importations; the obligation to correct incorrect
declarations; the assessment of additional Goods and Services Tax
(GST) and Harmonized Sales Tax (HST); the imposition of
administrative monetary penalties (AMPS); and the seizure and
forfeiture of goods. Corrections may be required for an adjustment
period specified in the verification report, and the importer may
be required to correct incorrect declarations going back four
years.
