CustomsCompass

Importer Liability Notice

CBSA Memorandum D17-2-5: You are ultimately responsible for the accuracy of your customs declarations.

Understanding Your Responsibility as an Importer

Under Canadian law, the importer of record bears full legal responsibility for the accuracy of all information provided to the Canada Border Services Agency (CBSA), regardless of whether a customs broker or software tool was used.

This principle is outlined in CBSA Memorandum D17-2-5 and reinforced under the CARM (CBSA Assessment and Revenue Management) system.

What This Means for You

You Must Verify All Classifications

Even if CustomsCompass or a customs broker provides an HS code classification, you must review and confirm its accuracy. The CBSA holds you accountable for incorrect codes, not the tool or broker.

You Are Responsible for Duty Payments

If a product is incorrectly classified and duties are underpaid, you are liable for the difference, plus potential penalties and interest, even if the error originated from a third-party tool or broker.

You Must Maintain Records

Canadian law requires importers to keep detailed records of all imports for a minimum of 6 years. These records must be available for CBSA audits and verifications.

You Must Comply with All Regulations

Beyond tariff classification, you are responsible for ensuring compliance with all Canadian regulations, including CFIA permits, Health Canada approvals, labeling requirements, and prohibited/restricted goods lists.

What CustomsCompass Does (and Doesn't Do)

What We Do

  • ✓Provide AI-powered HS code suggestions based on CBSA data
  • ✓Calculate estimated duties, GST, and PST
  • ✓Generate compliant customs documentation
  • ✓Flag common errors and missing information
  • ✓Provide guidance based on official CBSA memoranda

What We Don't Do

  • ✗Act as a licensed customs broker
  • ✗Submit declarations to CBSA on your behalf
  • ✗Guarantee the accuracy of classifications
  • ✗Assume liability for your customs declarations
  • ✗Handle regulated goods requiring permits (e.g., food, pharma)

Consequences of Non-Compliance

Failure to meet your obligations as an importer can result in serious consequences:

  • Retroactive Duty Payments: CBSA can audit imports up to 4 years back and demand unpaid duties
  • Penalties: Incorrect declarations can result in penalties ranging from hundreds to thousands of dollars
  • Interest Charges: Unpaid duties accrue interest from the original import date
  • Seizure of Goods: Non-compliant shipments may be seized or refused entry
  • Legal Action: Repeated or intentional violations can lead to criminal charges
  • CARM Account Suspension: Your import privileges may be suspended

Best Practices for Compliance

To minimize your risk as an importer:

  • Always review AI-generated HS codes before submission
  • Consult the official CBSA Tariff for complex classifications
  • Keep detailed records of product descriptions, invoices, and documentation
  • Request an advance ruling from CBSA for high-value or complex products
  • Engage a licensed customs broker for regulated goods (food, medical, etc.)
  • Stay informed about changes to tariff codes and trade agreements

Useful CBSA Resources

Our Commitment to You

CustomsCompass is built to help you navigate the complexities of Canadian customs compliance with confidence. While we provide powerful automation and expert guidance, we believe in transparency: you are the importer of record, and the final responsibility rests with you.

We are here to make compliance easier, faster, and more affordable—but never to replace your due diligence.