CBSA Reassessment Rule in Canada: What Every Importer Must Know About the 90-Day Obligation
Introduction
Importing goods into Canada requires ongoing compliance with the Customs Act and regulations administered by the Canada Border Services Agency (CBSA).
Many importers believe that once goods are released and duties are paid, the file is closed. However, CBSA has the authority to reassess import declarations if errors are identified later.
One of the most important compliance obligations is the 90-Day Correction Rule under Section 32.2 of the Customs Act.
This article explains when reassessments arise, how far back CBSA can go, and how importers can reduce compliance risk.
When Can CBSA Reassess?
CBSA may reassess your declaration if there are concerns related to:
•Origin of goods
•HS Code / Tariff Classification
•Value for Duty
•Preferential tariff treatment
•Application of trade agreements
Reassessments may result from audits, verifications, advance rulings, or new information obtained by CBSA.
The 90-Day Rule – Section 32.2 of the Customs Act
If an importer has “Reason to Believe” that a declaration is incorrect, they must file a correction within 90 days.
“Reason to Believe” may arise from:
•A CBSA verification letter
•A final audit report
•An advance ruling
•A written notice from CBSA
•Relevant court decisions
•Specific industry guidance
Failure to correct within 90 days may expose the importer to penalties.
How Far Back Can CBSA Go?
The reassessment period depends on the facts:
•In many cases, CBSA may reassess within the standard limitation period (generally up to 4 years).
•In situations involving misrepresentation or non-compliance, the period may extend further.
•Verification findings may also affect future shipments going forward.
Each situation is fact-specific and documentation-driven.
Extension of Time to Correct
Where multiple corrections are required following a verification:
•An importer may request an extension.
•The request must typically be submitted within 45 days from the final report.
•If approved, CBSA may grant additional time (commonly up to 30 days, depending on circumstances).
Extensions are discretionary and not automatic.
Penalty Risk – AMPS
Failure to meet correction obligations may result in:
•Administrative Monetary Penalties (AMPS)
•Interest on unpaid duties
•Increased compliance scrutiny
Proper documentation and internal controls significantly reduce risk exposure.
This Practical Compliance Tips
To minimize reassessment risk:
Maintain organized and accessible records
Periodically review tariff classifications
Verify origin qualification under trade agreements
Monitor CBSA rulings and policy updates
Request advance rulings where uncertainty exists
Keep audit-ready documentation at all times
Compliance is an ongoing responsibility — not a one-time event.
Conclusion
CBSA reassessment powers are an essential part of Canadian import compliance. The 90-day correction obligation under Section 32.2 is a critical responsibility for every importer.
Understanding your obligations, maintaining proper documentation, and acting promptly when required can help avoid penalties and protect your business operations.
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. Customs valuation is highly fact-specific, and readers should seek professional customs compliance advice before making valuation decisions.