Adjusting Entries
Historically, amending or adjusting entries were only submitted to CBSA when differences in the outlay of duties and taxes occurred, and occasionally to correct classification numbers.
With the inception of the compliance audit, emphasis has been moved from a monetary adjustment process to a trail of consistent, accurate reporting system. Some of the adjustments that must be reported are:
Shortages
Differences between the purchase order and the receiving report.
Overages
Surplus goods received, over and above the declared goods.
Discounts
If discounts are applied at the time of clearance and then not taken advantage of at the time of payment to the vendor (e.g. term discounts), the corrected value must be voluntarily amended with CBSA.
If discounts are provided by the vendor subsequent to the time of accounting at Customs, and are taken advantage of by the importer, the corrected value must also be declared on an adjusting entry.
Valuation
Any changes to the methods of valuation as outlined above must be voluntarily disclosed.
Classification
Any corrections required to the classification number used at the time of accounting.
Diversions
If the goods were originally imported under a classification or tariff code specific to an application or condition of import and the goods were diverted or changed and no longer qualify under the terms specified, amending entries must be submitted and any applicable duties and taxes must be remitted.
Discrepancy Report for L. M. Clark