Canadian Border Security (CBSA) Practice Exam

What is one of the primary purposes of the Customs Act?

1. To conduct annual audits on companies

2. To protect Canadian industry from unfair competition

3. To manage immigration policy

4. To oversee environmental regulations

The correct answer is: To protect Canadian industry from unfair competition

The primary purpose of the Customs Act is to protect Canadian industry from unfair competition. This legislation aims to regulate the importation of goods into Canada, ensuring that Canadian businesses can compete fairly in the marketplace. By managing tariffs, duties, and compliance with trade agreements, the act helps prevent practices that could harm domestic industries, such as dumping or undervaluation of imported goods. Additionally, the act establishes procedures for the assessment of duties and the collection of revenues, which can contribute to a level playing field for local producers and suppliers. This focus on fair competition is vital for fostering an economic environment where Canadian businesses can thrive and for ensuring consumer protection. Understanding the primary objectives of the Customs Act highlights its critical role in maintaining the integrity of the Canadian market economy. Other options mentioned, such as conducting audits, managing immigration, or overseeing environmental regulations, while important in their own contexts, do not capture the primary goal of the Customs Act.