Fasting

After the holidays, I sit back and reminisce about  all the great food that we ate.

Although this past year may have been one where the festivities were celebrated only with immediate family (due to the current world circumstances), usually the vast selections and variety of food served was still vast and the choices extensive.

Slow cooked chuck roast with gravy and vegetables (see pictures) were some of the dishes that I prepared and the feedback was very positive.

The Chuck Roast Recipe can be reviewed at:
https://www.tasteofhome.com/recipes/melt-in-your-mouth-chuck-roast/ 

Once the holidays are over and (for those that choose to do so) new year resolutions are undertaken, the first thought is that maybe some intermittent fasting, a "cleanse" and some exercise would not be so bad. All of these drastic changes may not work if they are undertaken immediately, all at once and quickly. However, if healthy habits are undertaken systematically the chances of success rises exponentially.

For those interested, a great book (recommended by my dad) should be reviewed about how to undertake lifestyle changes and habits in a manner that will remain with an individual.
https://www.amazon.ca/Atomic-Habits-Changes-Remarkable-Results/dp/B07GBKBL1B/ref=sr_1_1?keywords=atomic+habits+james+clear&qid=1641997997&sprefix=atomic+%2Caps%2C170&sr=8-1 

So what does fasting have to do with Customs?

Well, I would say that we can relate fasting to the "cleanse". 

Most importers have a busy season and sometimes that busy season extends to being busy all year round. Does that give the internal team enough time to focus on aspects of the business that may be defined as secondary?

While a new years resolution for an individual, at times, focusses on health and work/home balance, for a business there is also aspects of remaining "healthy" not only from a tax and finance perspective but from a Customs compliance perspective as well.

Has the company reviewed their database to ensure accurate HS/HTS codes? 

Especially with the 2022 WCO - Word Customs Organization - updates.

See Blog: https://customsandcooking.blogspot.com/2021/12/preparation.html

Did a company review their financial statements against an import data report to ensure that value declared to Customs was accurate?

While reviewing, items to consider are:

- Any post entry charges paid to the vendor that were booked in the GL but nothing done to the Customs entry

- Are prices for the commodities being imported fluctuating and has the value on the import declaration been compared to the actual payment made to the vendor?

- Are values used by related party transactions justified by a transfer price report and how often has this report been reviewed and updated. Was an APA (Advanced Pricing Agreement) with the applicable tax authorities (i.e.: CRA and IRS) considered?

- Are HS/HTS codes accurate and are any updates required based on new/revised regulations, policies, precedent legal cases?

- Have Free Trade Agreement Certificates/Statements of Origin been renewed with applicable vendors and have certification studies been initiated?

All this to say that while an individual may choose to initiate a healthy cleanse with some sort of fasting initiative, a Customs cleanse would be useful in that an importer allocates resources (whether internal or third party assistance) to verify the underlying foundation of their compliance program and to initiate a "cleanse" where it may be identified to be necessary. 

It does not have to be all done at once. A systematic approach can be very beneficial to ensure that a compliance program has little to no gaps with respect to exposure to non-compliance.

To all those individuals that have made new years resolutions to better their health, we salute you and wish you the best of luck.

To all those companies that continue to be proactive with their compliance or have just started the process to set the foundations of compliance, it is one of the best business health actions that can be initiated.

Wishing everyone a great 2022!