AMPS Penalties to Increase April 1

AMPS Penalties to Increase April 1

Effective April 1, 2019, Canada Border Services Agency (CBSA) will increase AMPS penalties related to commercial trade under the Administrative Monetary Penalty System. These increases are part of ongoing changes to CBSA’s processes and procedures to increase border enforcement measures and compliance audits on Importers.

In 2017, recommendations from the Auditor General’s Spring Report identified that penalties under AMPS were too low to be effective in ensuring importer compliance with import rules. Following the report, CBSA conducted a review of the AMPS regime and held consultations with government agencies and company representatives. Conducted between November 2017 and July 2018, the review resulted in CBSA’s decision to increase 22 AMPS penalties. Increases will affect non-compliant importers only.

For more information, see Customs Notice 19-05.

What This Means for Importers and Exporters

In 2018, a total of $948,260 was collected by the CBSA for the 22 contraventions subject to increase on April 1. Based on the amended penalty amounts, in 2019 the same contraventions would generate $5,907,900. This represents an increase of an estimated 523%.

CBSA’s increased focus on compliance means importers and exporters need to understand their responsibilities and obligations when participating in international trade. Importers and exporters are ultimately responsible for providing accurate and complete information to the CBSA regarding their shipments. Understanding the requirements related to your imports and exports and working with vendors and services suppliers, including Customs Brokers and Freight Forwarders, is the first step in remaining compliant and avoiding AMPS penalties. Regularly reviewing your importing and exporting practices and developing a compliance plan will help to ensure compliance over time.

Listing of AMPS Contraventions with New Penalty Amounts Effective April 1, 2019

Source: CBSA, Customs Notice 19-05

Explanation of AMPS Contraventions with New Penalties

We Can Help

PF Collins can assist in avoiding AMPS penalties. Whether you require a Customs Broker to accurately classify and clear your goods through customs or Customs Consulting & Compliance services to help guide you through a compliance audit, we can help.