Canadian Exporters - Be Warned!

In their 18 Nov, 2015, article entitled “Canada Initiating Compliance Verifications Against Exporters,” John Boscariol, Helen Fortinos and Robert Glasgow at McCarthy Tetrault report a formal notice issued by Canadian Border Services Agency that there will be increased enforcement of the rules for exporting goods from Canada. In particular, CBSA appears to be concerned that automotive parts are crossing United States on their way to Mexico.

One can speculate whether this renewed interest in pursuing existing regulations is a response to TAPP or some other pressure on CBSA by their American counterparts.

Penalties can include fines, seizure and forfeiture.

The authors warn Canadian exporters to review “their export practices during 2015 and the previous six years to confirm compliance with export reporting requirements, and in particular with respect to exports to the United States that subsequently transit through to other countries.” They caution that “if any non-compliance is discovered, careful consideration should be given to potential penalty exposure and determining whether a voluntary disclosure is appropriate in the circumstances.”

The link to the McCarthy Tetrault article

The link to the CBSA Memorandum


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