The Process
The mandate of the Canada Customs Revenue Agency (CCRA) is to perform an audit of the paperwork and reporting practices for all Canadian Importers. Intensive investigation of all aspects of importing will be done and the results will include recommendations, warnings, and in the case of serious infractions, penalties may be assessed. Additional penalties may be assessed, subject to the passing of the Administrative Monetary Penalty System (AMPS) through Legislature.
The following information is provided to our clients to help them determine, in advance of audit, what changes should be made to their internal policies to conform to the expectations of the investigating officers.
How It Works
The company selected for audit will receive from the CCRA written notification that an on-site verification audit is scheduled. An officer will contact you for information about your systems, information regarding your importing activity and other relevant information.
Before they arrive, you may receive a package from the CCRA, requesting preliminary information which could include, but is not limited to, purchasing records, receiving reports, accounting/disbursement documentation and valuation information. They may also request sample documentation which could range from 1 to 25 specified import entries. This information must be submitted within thirty days of receipt of the request.
If, based on the response received, it is determined by CCRA that a full audit is required, you will be notified, and an investigating officer will contact you to arrange a date to begin the audit.
During the audit, your systems and controls will be examined to determine if accurate, reliable and complete information is provided to Customs for all importations of goods. Through consultation with company officials, your systems will be reviewed and documented to verify that all importations align with the regulations for importing goods into Canada. Upon completion of the review, the systems will be tested, and your level of compliance will be determined.
Based on the results, recommendations will be made as to changes required to your policies and systems to conform to the regulations, warnings will be issued, and in the case of serious infractions, penalties may be assessed.
The following sections are representative of the type of information sought by the CCRA during a Compliance Audit. The continuous flow of information, correlation of systems and disclosure of discrepancies (overages, shortages, adjustments, etc.) is essential to the successful completion of the investigation.