Why Some Goods Are Held at Customs—and How to Prevent It

If you’ve ever had a shipment delayed at the border, you know how frustrating—and costly—it can be. Customs holds can disrupt your supply chain, increase expenses, and even result in penalties. Understanding why shipments get flagged and how to prevent delays is crucial for any importer.

At Logistics and Customs Services (LCS), we help businesses navigate Canadian customs regulations, ensuring their goods clear smoothly and on time. Let’s break down the common reasons why shipments are held at customs and how to avoid these costly setbacks.

1. Incorrect or Incomplete Documentation

One of the most frequent reasons for customs delays is missing or incorrect paperwork. Canada Border Services Agency (CBSA) requires specific documents to verify shipments and assess duties and taxes. Even minor errors can lead to unnecessary scrutiny.

Common documentation mistakes:

• Incorrect HS Code (Harmonised System Code) classification
  
  
• Missing or inaccurate commercial invoice details
  
  
• Failure to provide certificates of origin for trade agreements
  
  
• Inconsistent value declarations
  
  

How to prevent it:

• Work with a customs broker like LCS to ensure all documents are complete and accurate before shipping.
  
  
• Double-check invoice details, including descriptions, values, and country of origin.
  
  
• Keep records of previous shipments to maintain consistency in declarations.
  
  

2. Suspicion of Undervaluation or Misclassification

CBSA closely monitors imports for misdeclarations. If customs suspects you undervalued or misclassified your goods to reduce duty payments, your shipment may be flagged for a detailed examination.

Warning signs for CBSA:

• Declaring a value significantly lower than the market price
  
  
• Using an incorrect HS code to benefit from a lower tariff
  
  
• Discrepancies between the declared and actual contents of the shipment
  
  

How to prevent it:

• Ensure your goods are classified correctly under the HS Tariff System.
  
  
• Provide a fair market valuation for your products—don’t underreport.
  
  
• Maintain clear and consistent documentation across multiple shipments.
  
  

At LCS, our expert customs brokers help importers classify goods correctly and ensure compliance with CBSA’s valuation guidelines.

3. Restricted or Prohibited Goods

Certain goods require special permits, and others are outright prohibited from entering Canada. If customs officials find regulated or prohibited items in your shipment, they may detain or even confiscate the goods.

Common restricted items include:

• Pharmaceuticals and medical devices
  
  
• Food products, plants, and live animals
  
  
• Firearms, ammunition, and explosives
  
  
• Electronics and wireless communication devices
  
  

How to prevent it:

• Check CBSA’s regulations before importing any restricted products.
  
  
• Obtain all necessary licences and permits in advance.
  
  
• Ensure your supplier is aware of Canadian import laws.
  
  

LCS helps businesses pre-screen their shipments to confirm compliance with import restrictions and prevent unnecessary holds.

4. Random CBSA Inspections

Even if you’ve done everything right, your shipment can still be randomly selected for inspection. CBSA conducts these checks to prevent fraud, smuggling, and ensure regulatory compliance.

Factors that increase inspection chances:

• First-time importers or businesses with limited customs history
  
  
• Shipments from high-risk regions
  
  
• Inconsistent import patterns or large fluctuations in volume
  
  

How to prevent it:

• Maintain a consistent import history to build trust with customs.
  
  
• Partner with a reputable logistics provider to ensure compliance.
  
  
• Consider Trusted Trader Programmes like CTPAT or PIP for reduced inspection frequency.
  
  

While you can’t avoid random inspections entirely, LCS ensures your documentation is flawless so that checks proceed smoothly and without delays.

5. Outstanding Duties or Taxes

If your duties, taxes, or customs fees haven’t been properly declared or paid, your shipment can be held until the issue is resolved.

Common mistakes include:

• Underestimating duty and tax obligations
  
  
• Failing to provide a valid business number (BN) for commercial imports
  
  
• Missing payment deadlines for duty deferrals or GST/HST payments
  
  

How to prevent it:

• Work with a customs broker like LCS to calculate the exact duties and taxes before shipment.
  
  
• Set up a duty deferral programme if applicable.
  
  
• Use a customs bond to ensure duties are covered in advance.
  
  

6. Failure to Meet Packaging and Labelling Standards

Canada has strict labelling and packaging regulations, particularly for goods like food, pharmaceuticals, and electronics. Incorrect labelling can lead to product seizures or relabelling requirements, delaying your shipment.

Common labelling mistakes:

• Failing to meet bilingual (English & French) labelling requirements
  
  
• Incorrect safety certifications for electronics
  
  
• Missing ingredient lists for food products
  
  

How to prevent it:

• Review Canada’s labelling guidelines before importing.
  
  
• Ensure your supplier follows Canadian packaging standards.
  
  
• Work with LCS to verify compliance before shipping.
  
  

Get Expert Customs Clearance Support with LCS

When your goods get held at customs, every hour of delay costs money and impacts your supply chain. Instead of dealing with stressful customs holds, let Logistics and Customs Services (LCS) handle the process for you.

Why Choose LCS?

• Expert Documentation Review – We ensure your paperwork is complete and CBSA-compliant.
  
  
• Duty & Tax Optimisation – Helping you reduce costs while staying fully compliant.
  
  
• Hassle-Free Clearance – We navigate CBSA’s requirements to prevent unnecessary delays.
  
  
• Proactive Compliance Solutions – Avoid future holds with our strategic import planning.
  
  

📞 Contact LCS today for a consultation and ensure your shipments clear customs smoothly, every time.