Preparing for the Inevitable CBSA Customs Audit
Every year hundreds of thousands of Canadian businesses take advantage of international trade opportunities. This includes an estimated 165,000 businesses that import, along with the roughly 15% of small businesses and 30% of medium-size businesses that export. While the types of products crossing the border may vary, something common to all importers and exporters is the need for compliance with Canada Border Services Agency (CBSA) customs mandates. As CBSA has stepped up efforts to ensure compliance, this has resulted in a spike in post-entry customs audits.
In fact, notes international customs experts Livingston International, customs audits have become so common that it’s not a question of “if” a business will be selected, but “when.”
While a business may find itself on the receiving end of a CBSA audit notification for any reason, most inquiries are triggered by a suspected problem in one of these areas:
- Tariff classification
- Country of origin identification
- Product valuation.
In addition, twice a year CBSA issues a list of “targeted verification priorities” which identifies products deemed to be a risk for customs non-compliance. A business with products included on that list should expect a heightened level of CBSA scrutiny and take steps to ensure full compliance. CBSA’s most recent priorities list was released in January 2026,and includes products ranging from certain dairy and poultry products, to steel and aluminum products, to goods claiming benefits under specific free trade agreements.
Depending on the nature of a suspected customs violation, CBSA may conduct a full-blown review of a business’s transactions, which can result in the imposition of significant monetary fines. Or, it may choose to use a less onerous “compliance tool,” in which a business is notified of a possible error and instructed to make required modifications.
But no business wants to find itself in CBSA’s audit crosshairs and fortunately, a business can take proactive steps to ensure “audit readiness.” This includes identifying areas in which shipments are vulnerable, ensuring compliance is prioritized internally, and keeping informed about changes to customs requirements.
Why this paper is important:
- Now more than ever, Canadian importers and exporters risk being subject to a Canada Border Services Agency (CBSA) post-entry customs audit. This is the result of increased efforts by CBSA to prioritize compliance as a way to ensure the accuracy of shipments crossing the border, and the proper payment of all duties and taxes.
- While a shipment may be subject to an audit for any reason, “red flags” most often result from mistakes in the following categories:
1. Tariff classification.
2. Product valuation.
3. Country of origin. - In addition, twice each year CBSA releases a list of “targeted verification priorities,” which identifies products that will be subject to heightened scrutiny. The most recent list, released in January 2026, includes products ranging from certain dairy and poultry products, to steel and aluminum, to goods claiming benefits under specific trade agreements.
- CBSA utilizes several different types of audits and compliance tools. This includes traditional “trade compliance verifications,” or audits, along with less intrusive compliance queries.
- Businesses can minimize the risk of being selected for an audit by understanding how their shipments may be at risk and taking steps to prioritize compliance.
- This paper provides an extensive overview of CBSA customs audit practices along with information for businesses to use in becoming “audit ready.”
- The paper also discusses the essential role an experienced logistics partner can have in cross-border shipping, both in ensuring customs compliance and shipping efficiency.
What the reader will learn:
The white paper includes several important takeaways that include:
- CBSA trade compliance overview
– An overview of current CBSA compliance practices:
1. Information about traditional audits, or trade compliance verifications.
2. An overview of less-intrusive “compliance tools,” which allow shippers to correct mistakes. - Ensuring Compliance
– An overview of reasons shipments are most often flagged for audits. - Minimizing Risk
– An “audit readiness” checklist that businesses can use to prioritize compliance and instill internal best practices. - The need for an experienced international logistics partner.
– An understanding of the importance of enlisting an experienced logistics partner when shipping across international borders.
– An overview of Purolator capabilities, with an emphasis on cross-border efficiencies.
This white paper serves as an important resource for businesses engaged in cross-border trade. While customs is an unavoidable part of the trade process, businesses can minimize the risk of a mistake –and eventual audit – by understanding the process and adopting internal compliance protocols.