Customs Verifications (Audits): Planning To
Succeed1 – Part II
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
