SIMA Enforcement & the Broker's Role

CSCB's Annual Calgary Conference showcased two legal professionals in Jacob Mantle & George Reid .

Their presentation was engaging while highlighting key challenges and common mistakes that customs brokers and importers face when dealing with the Special Import Measures Act (SIMA) in Canada. SIMA is complex and subject to frequent changes, leading to costly errors if not carefully managed.

The discussion emphasized the importance of responding accurately to inquiries from the Canada Border Services Agency (CBSA) regarding shipments, as simple missteps can lead to significant financial consequences. For instance, miscalculating duties or incorrectly assuming the origin of goods can result in six-figure assessments.

it is rare that documents have forensic detail necessary for SIMA assessment. As such, Customs Brokers should seek to support the importer in fully understanding CBSA’s expectations, including whether goods are classified as subject goods under SIMA as misunderstanding tariff classifications and subjectivity can lead to further issues.

George stressed the importance of being cautious when seeking refunds, as they could trigger a review that results in even higher assessments than originally expected. This illustrates how vital it is to adopt a proactive mindset, incorporating risk mitigation through education and awareness.

A checklist was shared with those in attendance touching on SIMA basics, ensuring they ask the right questions including whether subject goods may benefit from exclusions.

Lastly, brokers were encouraged to maintain strong communication with importers and exporters, particularly regarding normal values and export prices, to avoid costly mistakes.

Jacob & George closed with a reminder that SIMA's primary objective is to protect domestic industries, and importers should be prepared for rigorous enforcement of these rules by the CBSA.