AMPS Penalties to Increase April 1, 2019
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.
Contraventions with New Penalty Amounts
$25,000 (per occurrence) | |||
Source: CBSA, Customs Notice 19-05
Explanation of AMPS Contraventions with New Penalties
(SIMA) | Person provided information to an officer that is not true, accurate and complete. When a Special Import Measures Act (SIMA) code was not completed correctly for goods imported seven days or more after a preliminary determination was made and after the importer was notified in writing, and ending when the SIMA action is terminated by Canada Border Services Agency (CBSA) or the Canadian International Trade Tribunal (CITT) |
C152 | Importer or owner of goods failed to furnish the proof of origin upon request. In 2018 15 Penalties totally $2,235.00 were issued Under the new rate total would approximately be $7,500.00 |
C080 | Authorized person failed to make the required corrections to a declaration of origin of imported goods subject to a free trade agreement within 90 days after having reason to believe that the declaration was incorrect. In 2018 4 Penalties totally $ 600.00 were issued Under the new rate total would approximately be $2,000.00 |
C082 | Authorized person failed to make the required corrections to a declaration of tariff classification within 90 days after having reason to believe that the declaration was incorrect |
C083 | Authorized person failed to make the required corrections to a declaration of value for duty within 90 days after having reason to believe that the declaration was incorrect. In 2018 102 Penalties totally $15,300.00 were issued Under the new rate total would approximately be $51,000.00 |
C157 | Person who imports, or causes to be imported, commercial goods failed to make records and documents in respect of those goods available to an officer when requested. Apply a penalty per written request for records and documents basis. In 2018 131 Penalties totally $61,500.00 were issued Under the new rate total would approximately be $155,400.00 |
C168 | Person failed to report within 90 days a failure to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff |
C169 | Person failed to repay within 90 days duties and interest refunded under paragraph 74(1)(f) of the Customs Act after a failure to comply with a condition imposed under a tariff item in the List of Tariff Provisions in the schedule to the Customs Tariff |
C214 | Person failed within 90 days or such other period as may be prescribed to report a failure to comply with a condition of a duties relief provision or remission order |
C215 | Person failed within 90 days or such other period as may have been prescribed to pay the amount of duties in respect of which relief or remission was granted unless the provisions of subparagraph 118(1)(b)(i) or (ii) of the Customs Tariff were met |
C216 | Person failed within 90 days after the date of the diversion to report diverted goods to a customs officer at a customs office |
C217 | Person failed within 90 days after the date of the diversion to pay the amount of the drawback and the amount of any interest granted |
C218 | Person failed to pay within 90 days duties relieved under section 89 of the Customs Tariff on the goods that entered into a process which produced by-product(s) not eligible for relief |
C223 | Non Customs Self Assessment (CSA) importer failed to provide a detailed product description in respect of goods liable for review under the Special Import Measures Act (SIMA), after the importer has been notified in writing |
C224 | Customs Self Assessment (CSA) importer failed to provide the detailed product description within the period specified in respect to goods liable to a Special Import Measures Act (SIMA) action |
C298 | Person who imports commercial goods or causes commercial goods to be imported failed to provide records in respect of those goods to an officer when requested, within the time specified by the officer |
C336 | Person failed to pay duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act |
C350 | Authorized person failed to pay duties as a result of required corrections to a declaration of origin of imported goods subject to a free trade agreement within 90 days after having reason to believe that the declaration was incorrect. In 2018 433 Penalties totally $64,950.00 were issued Under the new rate total would approximately be $216,500.00 |
C351 | Authorized person failed to pay duties as a result of required corrections to a declaration of origin of imported goods within 90 days after having reason to believe that the declaration was incorrect |
C352 | Authorized person failed to pay duties as a result of required corrections to a declaration of tariff classification within 90 days after having reason to believe that the declaration was incorrect. In 2018 7,436 Penalties totally $637,775.00 were issued Under the new rate total would approximately be $3,718,000.00 |
C353 | Authorized person failed to pay duties as a result of required corrections to a declaration of value for duty within 90 days after having reason to believe that the declaration was incorrect. In 2018 3,514 Penalties totally $165,900.00 were issued Under the new rate total would approximately be $1,757,500.00 |
We Can Help!
PF Collins can assist in avoiding AMPS penalties. If you require a Customs Broker or Customs Consulting & Compliance Specialist to accurately classify and clear your goods through customs or to help guide you through a compliance audit, we can help.
