CBSA conducts Trade Compliance Verifications (TCVs) on Canadian importers selected by risk targeting. Audits cover classification, valuation, country of origin, and tariff treatment. CBSA can issue penalty assessments and reassessments. Peacock Tariff Consulting handles TCV response for SMB importers – initial document review, CBSA correspondence, penalty mitigation, and reassessment management.
A CBSA Trade Compliance Verification (TCV) notice is a formal audit. CBSA selects importers based on risk targeting – the agency does not verify every importer; it verifies importers it considers more likely to have errors. Once selected, the importer must respond on CBSA’s timeline with documentation supporting all entries in the verification scope.
Peacock Tariff Consulting handles TCV response for Canadian importers without dedicated trade compliance staff. We coordinate with the importer’s broker, prepare CBSA-facing documentation, manage correspondence, and pursue penalty mitigation where the audit produces findings.
What CBSA verifies in a TCV
CBSA TCVs typically cover one or more of: tariff classification (HTS code accuracy), customs valuation, country of origin, tariff treatment (FTA preference claims, surtax applicability, AD/CVD scope). The verification scope is set in the initial notice and typically covers a defined entry period (often 12-24 months).
Timeline and process
CBSA issues an initial verification notice; importer has typically 30 days to respond with initial documentation. CBSA reviews and may request additional information. The verification typically completes within 6-18 months from initial notice. Findings can result in reassessments, penalty assessments, or no further action.
Why responses fail
Common failure patterns: incomplete documentation submission, inconsistent narrative across entries, untimely responses, broker-importer documentation gaps, missing supplier affidavits supporting origin claims. CBSA tends to interpret incomplete submissions against the importer.
How we structure TCV response
Our process: (1) intake review of the verification notice and prior 12-24 months of entry summaries, (2) gap analysis identifying documentation we have vs. what CBSA will need, (3) supplemental documentation collection from suppliers and brokers, (4) CBSA-facing submission with cover memo establishing the audit narrative, (5) ongoing correspondence management.
Penalty mitigation
Where TCVs produce reassessments, CBSA may impose AMPS (Administrative Monetary Penalty System) penalties. We pursue mitigation arguments – substantial compliance, voluntary disclosure analogues, prior compliance posture. Penalty reduction is often available where the response process is well-managed.
Frequently asked questions
I just received a CBSA verification notice – what should I do first?
Read the notice carefully for the specific scope and response deadline. Pull the entry summaries for the verification period. Engage support within 48-72 hours; the response timeline is short and gathering documentation takes time.
Will CBSA come on-site for a verification?
Most TCVs are documentary – conducted through written correspondence and document submission. On-site verifications occur but are less common; they are typically for complex cases or where documentary review has surfaced significant issues.
How long does a TCV take?
Typically 6-18 months from initial notice to closure. Complex audits or those producing reassessments take longer.
What is the difference between CBSA TCV and CBP Focused Assessment?
CBSA TCV is generally narrower in scope (specific issue or entry period) and faster than CBP Focused Assessment. CBP FAs cover internal controls broadly and run 6-18 months. See /cbsa-vs-cbp-differences/.
Can penalties be reduced after a finding?
Yes, often. AMPS penalties have mitigation arguments around substantial compliance, prior posture, and the cooperativeness of the response. We pursue mitigation as part of standard engagement.
Get started
Already received a CBSA verification notice? Contact us within 48 hours of receipt – response timing matters.