Enforcement of cross-border cargo has significantly increased during the Trump administration, leading to delays and additional costs and serving as a trade deterrent, according to shippers. Alongside the implementation of tariffs along the 49th parallel, industry experts note a rise in freight screening and penalties as part of a stricter customs approach in the United States.
Breanna Leininger, in charge of U.S. operations at Pacific Customs Brokers in Vancouver, described the shift as massive. She mentioned that border officials now request ten times more documentation for shipped goods compared to several years ago. The scrutiny from customs has intensified, with a noticeable increase in detailed inspections occurring daily, a stark contrast to the past where such instances were rare.
Importers are now required to provide a more extensive paper trail, including labor and manufacturing records, to demonstrate compliance with product classifications and trade agreements. The level of evidence requested and the specific tariffed items appear to vary frequently, making it challenging for businesses to keep up with the evolving requirements.
Data supports the narrative of rigorous enforcement measures. U.S. Customs and Border Protection statistics indicate a projected 26% increase in audits in the current year compared to 2024. In the first half of the year, customs authorities collected $70.6 million US in trade penalties, marking a significant surge from previous years.
These heightened enforcement actions coincide with an escalating trade war between Canada and the United States, resulting in additional tariffs imposed by both sides. The delays at the border and the increased time needed to source product records contribute to higher expenses and, in some cases, discourage cross-border trade.
Alan Dewar, the executive vice-president at GHY, a customs brokerage in Winnipeg, highlighted the significant costs incurred due to these enforcement measures. He emphasized the financial burdens faced by businesses, such as storage expenses and service charges resulting from delays in transportation.
Many businesses have managed to navigate these challenges, but some have found the process too daunting to continue. U.S. Customs and Border Protection stated that they continuously evaluate and adjust their trade enforcement strategies based on risk factors, trade patterns, and legal obligations. Importers are reminded of their responsibility to exercise due diligence and provide accurate information to CBP to ensure compliance with regulations.
