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We are only a couple of weeks away from higher Administrative Monetary Penalties (AMPS) for 22 contraventions related to commercial trade, implemented after a study showed the existing penalties were not in line with non-trade commercial offences.
As an example, the revised penalty amounts will, where CBSA determine the importer had “reason to believe” an error occurred, increase from $150 per occurrence (i.e. shipment) to $500 each to a maximum of $25,000 for a 1st level penalty.
Details on the contraventions and the related penalties, which come into force April 1, 2019, are provided in a table issued by the CBSA (Canada Border Services Agency) with descriptions of each penalty listed below.
Table 1 – Changes to Select Administrative and Monetary Penalty Levels
| Contravention Code |
Penalty Level |
Current PENALTY Amount | PENALTY Amount EFFECTIVE April 1, 2019 |
|
C004,
C152, C168, C169, C223, |
1st | $150 | $500 |
| 2nd | $225 | $750 | |
| 3rd and subsequent | $450 | $1,500 | |
|
C080,
C081, C082, C083, C350, C351, C352, |
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, |
1st | $300 | $600 |
| 2nd | $450 | $1,200 | |
| 3rd and subsequent | $900 | $2,400 | |
| C336 | Flat Rate | $100 per instance | $200 per instance |
For a detailed description of the above mentioned penalties, please click here.
In addition, the CBSA will reset the penalty level to the first level for contraventions mentioned above that occur on or after April 1, 2019. This is to avoid unanticipated impacts on industry that could occur by issuing second and third level penalties at higher levels than previously indicated.
The new AMPS regime takes into account feedback from several key stakeholder groups, including the Canadian Society of Customs Brokers, the Canadian Federation of Independent Business, the Canadian Association of Importers and Exporters, and the Association of International Customs and Border Agencies. Company representatives were consulted as well through the Border Commercial Consultative Committee.
We offer professional Customs Consulting services to assist you in becoming fully compliant. Remember, investing in compliance is always less costly than paying for non-compliance.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
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