Overview of verification
Verification allows the ITB branch to closely monitor a contractor's progress in achieving its ITB obligations.
Contractors are required to submit an annual report, outlining its activities over the past year. The annual report is then reviewed and verified by ITB officials to ensure that the business activities have indeed taken place as reported.
Following verification, ITB officials confirm the amount of credits that are awarded for that year towards reducing the contractor’s obligations.
What to expect if you're a contractor
- The ITB branch has a six-month service standard for the completion of its verification activities.
- At the first annual verification, the contractor should expect to provide a detailed overview of their record-keeping system and for it to be tested through some random sampling. This exercise allows ITB officials to develop a good level of confidence in the contractor's system.
- At any verification, the contractor should expect to provide detailed documentation proving that individual business activities have taken place as reported. This documentation could include: purchase orders, shipping/receiving documents, proof of payment, sales records, etc. The responsibility to keep and produce these documents rests with the contractor.
- While verification usually takes place with the contractor, some projects have several “eligible donors” with whom the contractor is sharing a portion of their obligation. In these cases, verification activities may take place with those companies, if the ITB officer or the contractor believes it is necessary and appropriate.
- Contractors should expect ITB officials to alert them as to the approximate timing of any checks into the calculation of Canadian Content Value (CCV). CCV checks take place directly with Canadian companies, independent of the contractor, in order to ensure the Canadian company can protect its commercially sensitive information.
What to expect if you're a Canadian recipient company
- Confirming CCV is the one area where ITB officials will engage directly with a Canadian recipient company. All other verification activities take place with the contractor.
- Recipient companies should have already provided the contractor with their CCV percentage. During verification, companies should be prepared to explain to ITB officials how they calculated it.
- CCV checks are a regular part of the ITB branch’s due diligence process. Canadian recipient companies should not assume that they have been targeted due to a problem or mistake.
- A CCV check is independent of the contractor. ITB officials recognize that CCV information is often commercially sensitive and confidential, so these details are not shared with the contractor or anyone else.
- For CCV checks, ITB officials routinely use a variety of methods, such as phone calls, email exchanges and on-site meetings.
- For all CCV checks, Canadian recipient companies should expect to provide: a general overview of how they calculated their CCV; a breakdown of costs associated with their product/service; and details on any items sourced outside of Canada.
- Once contacted by ITB officials, Canadian recipient companies are encouraged to respond in a timely manner. Any delays related to a CCV check have an impact on the amount of credits that can be awarded to the contractor that year.
- Once a CCV check is concluded, Canadian recipient companies can take advantage of the opportunity to engage with ITB officials, learn more about the Policy and discuss how to take better advantage of future business opportunities.