AMPS Penalties to Increase April 1

Rebecca Price — Wed, 06 Mar 2019 18:43:00 +0000

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

Contravention Code	Penalty Level	Current Penalty Amount	Penalty Amount Effective April 1, 2019
C004, C152, C168, C169, C223, C224	1st	$150	$500
	2nd	$225	$750
	3rd and subsequent	$450	$1,500
C080, C081, C082, C083, C350, C351, C352, C353	1st	$150 to a maximum of $5,000 (per issue) or $25,000 (per occurrence)	$500 to a maximum of $5,000 (per issue) or $25,000 (per occurrence)
	2nd	$225 to a maximum of $200,000 (per occurrence)	$750 to a maximum of $200,000 (per occurrence)
	3rd and subsequent	$450 to a maximum of $400,000 (per occurrence)	$1,500 to a maximum of $400,000 (per occurrence)
C157, C214, C215, C216, C217, C218, C298	1st	$300	$600
	2nd	$450	$1,200
	3rd and subsequent	$900	$2,400
C336	Flat Rate	$100 per instance	$200 per instance

Source: CBSA, Customs Notice 19-05

Explanation of AMPS Contraventions with New Penalties

Code	Description
C004 (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.

The post AMPS Penalties to Increase April 1 first appeared on PF Collins International Trade Solutions.

The Administrative Monetary Penalty System (AMPS)

Rebecca Price — Wed, 30 May 2018 14:20:00 +0000

What is the Administrative Monetary Penalty System?

The Administrative Monetary Penalty System (AMPS) allows the Canada Border Services Agency (CBSA) to issue monetary penalties to anyone involved in the import or export of goods. This includes importers, exporters, carriers, freight forwarders, warehouse operators, and customs brokers.

AMPS was created by the CBSA to encourage compliance with import and export rules and regulations. It also serves to create a level playing field for Canadian businesses participating in international trade.

AMPS Penalties by the Numbers

In 2017, recommendations from the Auditor General’s Spring Report resulted in significant changes to CBSA’s processes and procedures, including increased border enforcement and compliance audits on importers. AMPS penalties have continued to rise each year since.

As of the CBSA’s most recent July 2020 – November 2023 statistics report, the AMPS contraventions totaled nearly $37 million CAD in penalties issued.

Assessment of Penalties

AMPS penalties result when a company fails to follow the rules and requirements of the Customs Act, Customs Tariff Act, and other government regulations.

CBSA maintains a Master Penalty Document listing all contraventions. It also describes the failure to comply and the associated penalty amount. Examples of non-compliance include:

Failure to pay duties
Not submitting required information and documents to the CBSA
Not reporting goods to the CBSA
Removing goods from a bonded warehouse prior to customs release by the CBSA

A CBSA Officer can issue an AMPS penalty at the border or through audit after customs release. Penalties may also result from a Trade Compliance Verification conducted by the CBSA. The CBSA manages trade compliance verification by conducting audits randomly or by identifying specific products as audit targets. See the latest target products:

Trade Compliance Audit Targets January 2024

What Happens if You Receive an AMPS Penalty?

You will receive a Notice of Penalty Assessment (NPA) from the CBSA. The NPA will describe the reason for penalty assessment, the corresponding contravention number (e.g. C005), and the penalty amount incurred. The penalty structure is graduated and progressive, with increased penalty amounts for repeat occurrences. The maximum penalty amount for a single contravention is $25,000.

CBSA maintains a record of contravention history for three (3) years. This can affect your business operations due to increased monitoring and inspections when importing or exporting goods.

How to Avoid Non-Compliance

Importers and exporters are ultimately responsible for providing accurate and complete information to the CBSA regarding their shipments. Therefore, understanding the requirements related to your imports and exports is the first step to remaining compliant.

Working with vendors and services suppliers, including Customs Brokers and Freight Forwarders, and regularly reviewing your international trade activities will also help to avoid being fined under AMPS.

Finally, we recommend developing a compliance plan to ensure accurate records related to your imports and exports are maintained.

Helpful Resources

We Can Help!

Whether you require a Customs Broker or Customs Consultant to accurately classify and clear your goods or to help guide you through a compliance audit, we can help.

The post The Administrative Monetary Penalty System (AMPS) first appeared on PF Collins International Trade Solutions.

AMPS - PF Collins International Trade Solutions

AMPS Penalties to Increase April 1