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Compliance

Trade Compliance Verifications – January 2017

Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including:

  • Risk assessment;
  • Revenue assessment; and
  • Promoting voluntary compliance.

Verification priorities

Targeted verification priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years. The current verification priorities are:

Curling Irons (Round 3)
Harmonized System Number(s): 8516.32.10

  • The risk identified is that goods may be misclassified as curling irons, which are duty-free. However, similar goods, such as flat irons, are properly classified under tariff item 8516.32.90, which attracts a duty rate of 6.5%.
  • This verification priority was released in June 2012 and a second round of verifications was released in February 2014. A total of $462k was assessed in revenue, as 36 out of 53 cases were found to be in error.
  • A third round of verifications was released in October 2016. Results are not yet available.
  • The results of the first two rounds show that the goods that were found to be misclassified were properly re-classified under tariff item 8516.32.90.

Spectacle Lenses (Round 2)
Harmonized System Number(s): 9001.40.10 and 9001.50.10

  • The risk identified is that spectacle lenses may be misclassified within Heading 90.01, which is duty-free for certain goods, and may be properly classified under other tariff items within the same heading as “other” products, which attract a duty rate of 2%.
  • This verification priority was released in January 2013 and $776k was assessed in revenue, as 8 out of 10 cases were found to be in error.
  • A second round of verifications was released in November 2014.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
19171376%$12,921$117,957$4,500$135,378
  • The results show that the goods that were found to be misclassified were properly re-classified under tariff item 9001.50.90 of the Customs Tariff.

Furniture for Non-Domestic Purposes
Harmonized System Number(s): Various goods of Headings 94.01 and 94.03

  • Headings 94.01 (Seats) and 94.03 (Other furniture and parts thereof) classify furniture for domestic purposes or other furniture for non-domestic purposes. The risk identified is that goods may be misclassified as furniture for non-domestic purposes, which is duty-free, instead of furniture for domestic purposes, which attracts a duty rate up to 9.5%.
  • This verification priority was released in January 2013.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
25221255%$91,117$594,090$1,050$686,257
  • The results show that the goods that were found to be misclassified were properly re-classified under furniture for domestic purposes.

Seaweed (Round 3)
Harmonized System Number(s): 1212.21.00 and 1212.29.00

  • The risk identified is that prepared seaweed, which attracts a duty rate of 6%, could be misclassified as unprepared seaweed, which is duty-free.
  • This verification priority was released in September 2011 and $257k was assessed in revenue, as 6 out of 7 cases were found to be in error.
  • A second round of verifications was released in May 2013 and $227k was assessed in revenue, as 31 out of 38 cases were found to be in error.
  • A third round of verifications was released in March 2016.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
307457%$37,208$0$7,725$44,933
  • The results of the first two rounds show that most of the goods that were found to be misclassified were properly re-classified under classification number 2008.99.90.99 of the Customs Tariff.

Dextrins and Other Modified Starches (Round 3)
Harmonized System Number(s): 3505.10.90

  • The risk identified is that goods could be incorrectly classified as “dextrins and other modified starches”, which are duty-free, whereas they could be properly classified as “other sugars” of Heading 17.02. The duty rates under Heading 17.02 range from 0% to 11%.
  • This verification priority was released in March 2012 and $414k was assessed in revenue, as 7 out of 11 cases were found to be in error.
  • A second round of verifications was released in May 2013 and $413k was assessed in revenue, as 24 out of 33 cases were found to be in error.
  • A third round of verifications was released in June 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
23171059%$73,959$74,911$450$149,320
  • The results show that the goods that were found to be misclassified were properly re-classified under Headings 17.02, 21.06, 35.05 and 38.24 of the Customs Tariff.

Disposable and Protective Gloves (Round 3)
Harmonized System Number(s): 3926.20.10 and 4015.19.10

  • The risk identified is that disposable and protective gloves, which are duty-free if the gloves qualify for specific end-uses, may be properly classified under tariff items 3926.20.91 or 4015.19.90, which attract a duty rate of 6.5% and 15.5% respectively.
  • This verification priority was released in October 2012 and a second round of verifications was released in July 2013. A total of $1.2 million was assessed in revenue, as 36 out of 41 cases were found to be in error.
  • A third round of verifications was released in January 2016. Results are not yet available.
  • The results of the first two rounds show that the goods that were found to be misclassified were properly re-classified under tariff items 3926.20.91 and 4015.19.90, and under Headings 48.18, 62.10 and 63.07 of the Customs Tariff.

Batteries (Round 2)
Harmonized System Number(s): 8506.10.10 and 8506.50.10.

  • The risk identified is that batteries may be misclassified under subheadings that are duty-free, when the batteries should be properly classified under other tariff items within those subheadings, which attract a duty rate of 7%.
  • This verification priority was released in November 2013 and $35k was assessed in revenue, as 6 out of 7 cases were found to be in error.
  • A second round of verifications was released in August 2016. Results are not yet available
  • The results of the first round show that the goods that were found to be misclassified were properly re-classified under tariff item 8506.10.90 of the Customs Tariff.

Footwear ( $30 or more per pair ) (Round 2)
Harmonized System Number(s): 6403.59.20 and 6403.99.30

  • The risk identified is that footwear subject to a duty rate of 18% could be misclassified under other related tariff items, such as women’s footwear valued at $30 or more per pair, which attracts a duty rate of 11%.
  • This verification priority was released in March 2014 and $585k was assessed in revenue, as all 10 cases were found to be in error.
  • A second round of verifications was released in May 2016. Results are not yet available.
  • The results of the first round show that the goods that were found to be misclassified were properly re-classified under various tariff items of Heading 64.03 of the Customs Tariff.

Hair Extensions (Round 2)
Harmonized System Number(s): 6703.00.00

  • The risk identified is that hair extensions could be misclassified under Heading 67.03, which is duty-free, instead of being properly classified under Heading 67.04 (e.g., wigs, false beards, etc.), which attracts a duty rate of 15.5%.
  • This verification priority was released in March 2014 and $1.2 million was assessed in revenue, as 29 out of 32 cases were found to be in error.
  • A second round of verifications was released in November 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
199889%$46,567$91,143$2,700$140,410
  • The results show that the goods that were found to be misclassified were properly re-classified under Heading 67.04 of the Customs Tariff.

Special Purpose Motor Vehicles (Round 2)
Harmonized System Number(s): 8705.90.90.90

  • The risk identified is that special purpose motor vehicles could be misclassified under duty-free tariff items instead of being properly classified under various tariff items of Heading 87.05, which attract a duty rate between 6.1% and 6.7%.
  • This verification priority was released in July 2014 and $228k was assessed in revenue, as 23 out of 41 cases were found to be in error.
  • A second round of verifications was released in August 2016. Results are not yet available.
  • The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under various dutiable tariff items of Heading 87.05 of the Customs Tariff.

Parts for Power Trains (Round 2)
Harmonized System Number(s): Heading 87.08

  • The risk identified is that goods could be incorrectly classified within Heading 87.08, instead of being properly classified under tariff item 8708.99.15 (parts for power trains for the vehicles of Heading 87.03), which attracts a duty rate of 6%.
  • This verification priority was released in August 2014.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
1099100%$3,472$77,169$3,600$84,241
  • A second round of verifications was released in August 2016. Results are not yet available.
  • The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Heading 87.08 of the Customs Tariff.

Geophysical and Oceanographic Instruments
Harmonized System Number(s): Heading 90.15

  • The risk identified is that various instruments could be incorrectly classified within Heading 90.15, whereas the accurate tariff items could potentially fall outside of Heading 90.15 and/or be subject to various duty rates depending on the appropriate classification that may be determined.
  • This verification priority was released in November 2014.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
2511873%$1,924$83,546$750$86,220
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 84, 85 and 90 of the Customs Tariff.

Cereals
Harmonized System Number(s): Heading 10.08

  • The risk identified is that cereals could be incorrectly classified under Heading 10.08, whereas the accurate tariff items could potentially be subject to various duty rates depending on the appropriate classification that may be determined.
  • This verification priority was released in December 2014.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
755100%$4,816$0$0$4,816
  • The results show that the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 10, 11, 12 and 19 of the Customs Tariff.

Articles of Apparel and Clothing Accessories (Round 2)
Harmonized System Number(s): Heading 39.26

  • The risk identified is that goods could be incorrectly classified within Heading 39.26, which attract lower duty rates, instead of being properly classified under tariff item 6210.40.90 (other men’s or boys’ garments) or 6210.50.90 (other women’s or girls’ garments), which are both subject to the significantly higher duty rate of 18%.
  • The issue is that clothing containing a layer of plastic, combined with textile fabric that is not considered as reinforcement to the plastic, should not be classified under Chapter 39.
  • This verification priority was released in December 2014.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
1341097468%$716,361$1,138,538$11,700$1,866,599
  • A second round of verifications was released in May 2016. Results are not yet available.
  • The results of the first round show that most of the goods that were found to be misclassified were properly re-classified under various tariff items within Chapters 42, 61, 62 and 65 of the Customs Tariff.

Bicycle Parts (Round 2)
Harmonized System Number(s): Heading 87.14

  • The risk identified is that bicycle related goods could be incorrectly classified within Heading 87.14, instead of being properly classified elsewhere within the same Chapter, and potentially be subject to various duty rates up to 13%.
  • This verification priority was released in April 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
68534789%$158,821$247,894$61,875$468,590
  • A second round of verifications was released in October 2016. Results are not yet available.
  • The results of the first round show that the goods that were found to be misclassified were properly re-classified under many different Chapters, such as 40, 62, 73, 85, 87, 90 and many more, of the Customs Tariff.

Articles of Plastics
Harmonized System Number(s): Subheading 3926.90

  • The risk identified is that articles of plastics could be incorrectly classified within Heading 39.26, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in April 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
111010100%$27,377$161,956$3,450$192,783
  • The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 39 of the Customs Tariff.

Articles of Iron or Steel
Harmonized System Number(s): Heading 73.26

  • The risk identified is that articles of iron or steel could be incorrectly classified within Heading 73.26, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in May 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
1413969%$5,936$18,669$9,450$34,055
  • The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Chapter 73 of the Customs Tariff.

Vices and Clamps
Harmonized System Number(s): Heading 82.05

  • The risk identified is that vices and clamps could be incorrectly classified within Heading 82.05, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in June 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
22151173%$22,489$55,028$2,700$80,217
  • The results show that most of the goods that were found to be misclassified were properly re-classified under tariff item 8205.70.90 of the Customs Tariff.

Parts for Use with Machinery of Chapter 84
Harmonized System Number(s): Heading 84.31

  • The risk identified is that parts for use with certain machinery of Chapter 84 could be incorrectly classified within Heading 84.31, instead of being properly classified under various tariff items, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in June 2015.
  • Results are not yet available.

Tubes, Pipes and Hoses
Harmonized System Number(s): Heading 39.17

  • The risk identified is that tubes, pipes and hoses could be incorrectly classified within Heading 39.17, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in September 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
2210880%$2,828$15,452$900$19,180
  • The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 39.17 of the Customs Tariff.

Parts of Lamps
Harmonized System Number(s): Heading 94.05

  • The risk identified is that imported goods could be incorrectly classified as parts of lamps, within Heading 94.05, instead of being properly classified elsewhere within the same Heading, or under other Chapters, and potentially be subject to various duty rates.
  • This verification priority was released in September 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
57362672%$66,045$548,583$9,150$623,778
  • The results show that most of the goods that were found to be misclassified were properly re-classified within Heading 94.05 or under Chapters 73, 76, 84 and 85 of the Customs Tariff.

Chemical Products (Round 2)
Harmonized System Number(s): Heading 38.08

  • The risk identified is that there may be misclassification due to the significant duty difference for insecticides, fungicides, herbicides, etc., of Heading 38.08, depending on weight and package size of the imported product:
    • 3808.XX.10: In packages of a gross weight not exceeding 1.36 kg each (6.5% duty rate);
    • 3808.XX.20: In bulk or in packages of a gross weight exceeding 1.36 kg each (duty-free).
  • This verification priority was released in May 2013. A total of $252k was assessed in revenue, as 10 out of 18 cases were found to be in error.
  • A second round of verifications was released in September 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
59451942%$25,662$148,455$1,500$175,617
  • The results show that the goods that were found to be misclassified were properly reclassified under tariff item 3808.XX.10, “in packages of a gross weight not exceeding 1.36 kg each”.

Pasta
Harmonized System Number(s): Heading 19.02

  • The risk identified is that pasta could be incorrectly classified within Heading 19.02, which is subject to various duty rates, instead of being properly classified elsewhere within the same Heading, and potentially be subject to higher duty rates.
  • This verification priority was released in November 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
3119947%$19,389$258,003$750$278,142
  • The results show that most of the goods that were found to be misclassified were properly re-classified elsewhere within Heading 19.02 of the Customs Tariff.

Hair Dryers and Electric Smoothing Irons
Harmonized System Number(s): Heading 85.16

  • The risk identified is that imported goods could be incorrectly classified as hair dryers or smoothing irons within Heading 85.16, instead of being properly classified elsewhere within the same Heading, and potentially be subject to a duty rate of 6.5%.
  • This verification priority was released in November 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
3527933%$14,215$49,026$750$63,991
  • The results show that all the goods that were found to be misclassified were properly re-classified elsewhere within Heading 85.16 of the Customs Tariff.

Cell Phone Cases
Harmonized System Number(s): Headings 39.26, 42.02 and 85.17

  • The risk identified is that cell phone cases could be incorrectly classified under various tariff items within Headings 39.26, 42.02 and 85.17, whereas the goods could potentially be properly classified under tariff item 4202.32.90 (articles of a kind normally carried in the pocket or in the handbag; with outer surface of sheeting of plastics or of textile materials; other), and be subject to a duty rate of 8%.
  • This verification priority was released in January 2016.
  • Results are not yet available.

Mountings, Fittings and Similar Articles
Harmonized System Number(s): Heading 83.02

  • The risk identified is that imported goods could be incorrectly classified as mountings, fittings and similar articles within Heading 83.02, instead of being properly classified under various tariff items within different chapters (for example, Chapters 73, 83, 84, 87 and 94), and potentially be subject to duty rates up to 8%.
  • This verification priority was released in January 2016.
  • Results are not yet available.

Stone Table and Counter Tops
Harmonized System Number(s): 9403.90.00

  • The risk identified is that stone table and counter tops could be incorrectly classified under tariff item 9403.90.00, which is duty-free, instead of being properly classified under various tariff items within Heading 68.02, which attract duty rates up to 6.5%.
  • This verification priority was released in March 2016.
  • Results are not yet available.

Prepared Meat of Swine
Harmonized System Number(s): Heading 16.02

  • The risk identified is that imported goods could be incorrectly classified as prepared meat of swine within Heading 16.02, instead of being properly classified elsewhere within the same Chapter. The duty rates for some tariff items within Chapter 16 range from 0% to 12.5%, while others are tariff rate quota (TRQ) tariff items, which are subject to duty rates as high as 253%.
  • This verification priority was released in March 2016.
  • Results are not yet available.

Live Plants
Harmonized System Number(s): Heading 06.02

  • The risk identified is that live plants could be incorrectly classified under a duty-free tariff item within Heading 16.02, instead of being properly classified elsewhere within the same heading and potentially be subject to a duty rate of 6%.
  • This verification priority was released in May 2016.
  • Results are not yet available.

Interchangeable Tools
Harmonized System Number(s): Heading 82.07

  • The risk identified is that imported goods could be incorrectly classified as interchangeable tools within Heading 82.07, instead of being properly classified under various tariff items within different Chapters (for example, Chapters 39, 68, 82 and 84) and be subject to duty rates up to 6.5%.
  • This verification priority was released in May 2016.
  • Results are not yet available.

Air Brakes and Parts Thereof
Harmonized System Number(s): Subheading 8607.21

  • The risk identified is that imported goods could be incorrectly classified as air brakes and parts thereof, within Subheading 8607.21, instead of being properly classified elsewhere within Heading 86.07, and be subject to duty rates up to 10%.
  • This verification priority was released in May 2016.
  • Results are not yet available.

Handkerchiefs, Towels and Related Paper Products
Harmonized System Number(s): Heading 48.18

  • The risk identified is that imported goods could be incorrectly classified as handkerchiefs, towels and other related paper products within Heading 48.18, instead of being properly classified under various tariff items within different Chapters (for example, Chapters 30, 33, 34, 39, 56 and 96) and be subject to duty rates up to 12%.
  • This verification priority was released in May 2016.
  • Results are not yet available.

Olive Oil (new)
Harmonized System Number(s): Headings 15.09 and 15.10

  • The risk identified is that imported goods could be incorrectly classified as olive oil (under Heading 15.09) or others oils obtained solely from olives (under Heading 15.10), which are duty free, instead of being properly classified elsewhere within Chapter 15, and be subject to duty rates up to 11%.
  • This verification priority was released in October 2016.
  • Results are not yet available.

Photographic Film (new)
Harmonized System Number(s): Heading 37.02

  • The risk identified is that imported goods could be incorrectly classified as photographic film under Heading 37.02, instead of being properly classified under Chapter 96, and be subject to a duty rate of 8.5%.
  • This verification priority was released in October 2016.
  • Results are not yet available.

Stone Blocks and Slabs (new)
Harmonized System Number(s): Headings 25.14, 25.15 and 25.16

  • The risk identified is that imported goods could be incorrectly classified as stone blocks and slabs under Headings 25.14, 25.15 and 25.16, which are all duty free, instead of being properly classified under various tariff items within Chapter 68, and be subject to duty rates up to 7%.
  • This verification priority was released in October 2016.
  • Results are not yet available.

Railway Equipment (new)
Harmonized System Number(s): Heading 86.08

  • The risk identified is that imported goods could be incorrectly classified as railway equipment under Heading 86.08, instead of being properly classified under various tariff items, and be subject to duty rates up to 6.5%.
  • This verification priority was released in October 2016.
  • Results are not yet available.

Sausages and Similar Products (new)
Harmonized System Number(s): Heading 16.01

  • The risk identified is that imported goods could be incorrectly classified as sausages and similar products under Heading 16.01, instead of being properly classified under a tariff rate quota (TRQ) tariff item, and be subject to duty rates of over 200%.
  • This verification priority was released in October 2016.
  • Results are not yet available.

Sacks and Bags under Tariff Item 9903.00.00 (Round 2)
Harmonized System Number(s): Headings 39.23 and 63.05

  • The risk identified is that sacks and bags classified under various tariff items and accounted for under conditional relief tariff item 9903.00.00, which is duty-free, may not comply with the usage conditions set out in this tariff item. The applicable duty rates range from 3% to 18%.
  • This verification priority was released in July 2014 and $626k was assessed in revenue, as 4 out of 9 cases were found to be in error.
  • A second round of verifications was released in October 2016. Results are not yet available.
  • The results of the first round show that some of the goods verified did not qualify for the use of conditional relief tariff item 9903.00.00.

Apparel (Round 2)
Harmonized System Number(s): Various goods of  Chapters 61 and 62

  • The risk identified is that, given the high rates of duty associated with the apparel industry (Chapters 61 and 62), importers of apparel may not be in compliance with the valuation provisions of the Customs Act. The duty rates vary from 10% to 18%.
  • This verification priority was released in February 2012 and $9.1million was assessed in revenue, as 15 out of 24 cases were found to be in error.
  • A second round of verifications was released in September 2015.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
12020735%$28,103$356,405$28,900$413,408
  • The results show that many goods were found to be valued incorrectly (e.g., assists were not added to the price paid or payable).

Preparations and Pastrycooks’ Products
Harmonized System Number(s): Various goods of Chapter 19

  • Given the rates of duty associated with preparations of cereals, flour, starch, milk, and pastrycooks’ products, this industry was selected for verification. The products are generally classified under Chapter 19 and the majority of the Harmonized System numbers are dutiable, while others are subject to Tariff Rate Quotas.
  • This verification priority was released in June 2012.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
98563%$116,454$1,023,919$2,400$1,142,773
  • The results show that many goods were found to be valued incorrectly (e.g., packaging and transportation costs were not added to the price paid or payable).

T-Shirts (Round 2)
Harmonized System Number(s): Heading 61.09

  • Previous verifications indicated that there was evidence that t-shirts of Heading 61.09 were not compliant with the NAFTA Rules of Origin for several reasons.
  • This verification priority was released in June 2013 and $1.9 million was assessed in revenue, as 25 out of 50 cases were found to be in error.
  • A second round of verifications was released in June 2016. Results are not yet available.
  • The results of the first round show that some goods classified as t-shirts do not qualify under NAFTA.

Jewelry
Harmonized System Number(s): 7113.11.90, 7113.19.90 and 7113.20.90

  • The risk identified is that jewelry classified in Chapter 71 may not meet the specific rule of origin and therefore does not qualify for duty-free importation under NAFTA.
  • This verification priority was released in March 2014.
Targeted CompaniesCases ClosedCases in Error% Non-ComplianceDAS Issued ($)Self-Adjustments by Importers ($)Penalties ($)Total ($)
95240%$0$166,341$4,500$170,841
  • The results show that some goods classified as jewelry do not qualify under NAFTA.