CARM: What all importers need to know about CARM

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Higher penalties coming soon for non compliance with trade regulations

We are only a couple 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,

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

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.

C004: 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).

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.

C081: Authorized person failed to make the required corrections to a declaration of origin of imported goods within 90 days after having reason to believe that the declaration was incorrect.

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.

C152: Importer or owner of goods failed to furnish the proof of origin upon request.

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.

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.

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.

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.

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.

C366: Person failed to pay duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act.

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, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 213.

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