Agriculture committee  We looked at those products listed in exhibit 2.2, so we didn't venture into the steel issue or duties paid or not paid on steel, for example.

Agriculture committee  We didn't provide an opinion on that specifically. It's important to understand that the Canada Border Services Agency has a very specific mandate. They are the people on the ground. Global Affairs Canada is more involved on the policy side. Despite also having a presence on the

Agriculture committee  As we explain in the report, the Canada Border Services Agency conducts random and targeted verifications. Targeted verifications are definitely the most effective, in that the information collected suggests a problem within a specific industry.

Agriculture committee  I understand that there was one additional case recently. My understanding is that they're up to seven, but when we did the audit, it was six. The seven needs to be verified. We don't know if that's—

Agriculture committee  In theory, yes. Global Affairs Canada is responsible for controlling permits issued to importers. In the course of the audit, however, we noted a discrepancy between the volume declared to the Canada Border Services Agency and the volume authorized by Global Affairs Canada under

Agriculture committee  Earlier, we were discussing incentives or the lack thereof. We didn't note that kind of thing, specifically. However, in an effort not to go over an import permit volume, someone could easily underestimate the value of their imports to keep more room as the year progresses. That

Agriculture committee  The Canada Border Services Agency does not perform front-line controls. Its mission is to facilitate trade, and since these are perishable goods, they need to move across the border quickly. They are not subject to any controls when they cross the border, including the Canada-U.S

Agriculture committee  Any control activities are performed at the destination point, at the storage facility or processing plant.

Agriculture committee  Retracing goods that have been dispersed across the system is the challenge that the Canada Border Services Agency faces. They may have been stored in a warehouse one day and be gone the next; the goods can indeed end up somewhere else.

Agriculture committee  Certainly, the fact that multiple departments are involved does complicate things. The two organizations have to communicate and coordinate their efforts. We did not make a recommendation on centralization, specifically. Our recommendations focused on the strengths and weaknesses

Agriculture committee  I want to make clear that the penalty is imposed on the Canadian importer, not on the exporter, American or otherwise. It is therefore up to Canadian importers to ensure that they are following the rules on quota-controlled goods, for instance.

Agriculture committee  Indeed, there isn't much incentive to behave properly and follow the rules.

Agriculture committee  In paragraph 2.35 of our report, we recommend that the Canada Border Services Agency review its penalty rate scale.

Agriculture committee  The optimal penalty rate is the one that serves as a deterrent. We didn't specify an amount in the report. However, a certain degree of market discipline is necessary, and if that discipline goes hand in hand with appropriate penalties, it should serve as a deterrent.

Agriculture committee  We didn't examine resources, specifically, or assess whether the agency had the necessary resources to deliver the program. That said, during the audit, we certainly observed some frustration on the agency's part in terms of the efforts devoted to program controls. Would more re