OCR Global Trade Brief – January 2023

Canada: Verification Priorities List 2023


The CBSA released an updated list of 20 specific imported goods that constitute its current verification priorities. Businesses may want to review this list and comply with their trade obligations, including paying the correct amount of duty and tax on any identified goods. Importers that have made errors related to tariff classification, valuation, or the origin of these goods could be subject to penalties.


The CBSA releases an updated list of verification priorities every six months but continues to audit importers for other goods as well. The list essentially identifies specific goods that the CBSA are targeting for audit investigations so that importers are properly meeting their trade obligations.


The CBSA’s list of verification priorities is divided into three separate categories based on specific categories of errors: 

  • Tariff classification — Goods for which importers may have used an incorrect tariff classification
  • Valuation — Goods for which importers may have assigned an improper valuation
  • Origin — Goods for which importers may have incorrectly determined the proper origin (often related to tariff treatment under a trade agreement). Where importers have made errors, they face assessments for additional duties and taxes owed as well as penalties.

Tariff classification:

  • Spent fowl • LED lamps • Furniture for non-domestic purposes • Batteries • Footwear ($30 or more per pair) • Parts of lamps • Cell phone cases • Pickled vegetables • Gloves • Bags • Other mountings and fittings, suitable for furniture • Air heaters and hot air distributors •Flashlights and miners’ safety lamps • Parts of machine and mechanical appliances • Bicycle parts • Parts for use with Machinery of Chapter 84 • Indicator panels and light-emitting diodes (LED) • Safety headgear • Disposable and protective gloves


  • Apparel




U.S. amendments to EAR; controls on marine toxins, plant pathogens, biological equipment


BIS released for publication in the Federal Register a final rule to amend the Export Administration Regulations (EAR) to reflect decisions made at the November 2021 and March 2022 Australia Group (AG) virtual implementation meetings and the AG plenary meeting held in July 2022.


The amendments include:


Revisions to certain Export Control Classification Numbers to clarify the controls on genetic elements and genetically modified organisms and the scope of the exclusion that applies to medical isolators “specially designed” for barrier nursing or transportation of infected patients


Clarifications by adding four naturally occurring, dual-use marine toxins (specifically, brevetoxins, gonyautoxins, nodularins and palytoxin) and removing cholera toxin


Amendments to reflect the AG plenary updates to the nomenclature of certain bacteria and fungi, and the clarification of the definition of “disinfected” as it applies to certain biological equipment.


Source: https://public-inspection.federalregister.gov/2023-00397.pdf



United States, EU sign tariff-rate quota agreement


United States Trade Representative Katherine Tai, Sweden’s Permanent Representative to the European Union (EU), Ambassador Mikael Lindvall, and European Commission Deputy Director General for Agriculture and Rural Development, Michael Scannell signed the U.S.-EU Tariff Rate Quota (TRQ) Agreement.  

    • The Agreement, once implemented, will enable the United States to preserve its existing access to the EU market for various agricultural commodities following the United Kingdom’s exit from the EU on January 1, 2021.
    • The new TRQ allocations are based on the historic pattern of agricultural exports to the 27 EU Member States.
    • The Agreement will restore favorable market access for multiple U.S. agricultural products, including for U.S. rice, almonds, wheat, and corn.




U.S. export controls of certain advanced computing and semiconductor manufacturing items extended to Macau


BIS released for publication in the Federal Register an update to a final rule that concerns the Export Administration Regulations (EAR) implementing necessary controls on advanced computing integrated circuits, computer commodities that contain such integrated circuits, and certain semiconductor manufacturing items.


This rule makes an initial update to the controls to more effectively achieve the policy objectives identified in previous regulations by adding the same controls implemented in China in that rule to Macau. The public may submit comments on the controls in the October 7 advanced computing and semiconductor manufacturing equipment rule, which BIS is extending to Macau in this rule. BIS intends to publish a subsequent rule to respond to the comments received, including making updates to the controls included in the October 7 advanced computing and semiconductor manufacturing equipment rule.


Source: https://public-inspection.federalregister.gov/2023-00888.pdf

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