A Review of Administrative Monetary Penalty System (AMPS) Issued by Canada Border Services Agency (CBSA) January - June 2016

Risk Management continues to be a high priority of the Canada Border Services Agency. The CBSA continues to modernize and streamline the method of risk assessment as seen in their Commercial Vision Document: ? Beyond 2020 ? The Commercial Vision.? Today?s business needs are driving the CBSA to innovate with effective, efficient and automated clearance processes that are risk based, minimize delay and reduce costs.As we move into 2017, CBSA will continue to assess risks away from the border by targeting high risk travellers and goods as early as possible in the trade and traveller programs. Carriers, freight forwarders and importers of all modes of transportation are required to electronically transmit Advance Commercial Information (ACI) to CBSA. This information allows the CBSA to conduct pre-arrival risk assessments of goods into Canada. In 2017 we will see the extension of ACI to importers in all modes through Advance Trade Data requirements.In reviewing the contraventions of non-compliance for the period of January to June of 2016, CBSA issued 3367 AMPs nationally. Contravention 378 accounted for 1198 AMPs or 36% of the AMPs issued.

In order to understand this further, let us take a look at what each contravention means.

Contravention C378

Person failed to submit the prescribed pre-load/pre-arrival information relating to their cargo and/or conveyance.Non-compliance occurs when the responsible party fails to provide the CBSA with the required pre-arrival or pre-load data prior to arrival in Canada. One C378 penalty is issued per instance. This contravention generally occurs when a carrier fails to transmit an electronic conveyance report or a freight forwarder failed to transmit an electronic house bill. The penalty carries a $2000.00 fine for the first occurrence, $4000.00 for the second and $8000.00 for the third and subsequent occurrence.The next highest single contravention was C005 in which 533 AMPS were issued and represented 16% of the total.

Contravention C005

Person provided information to an officer that is not true, accurate and complete.  The information required to be provided in any permit, certificate, license, document or declaration in respect of imported or exported goods is incomplete.Non-compliance occurs when mandatory prescribed information required to be provided by electronic or written means, in respect of imported or exported goods is untrue, inaccurate or incomplete.An officer will generally ask for clarification or an opportunity to provide the missing information and if the client fails to comply or correct then a penalty is applied per declaration or document. The officer will specify that a penalty will be issued in the reject notice.The contravention applies when carriers, exporters, or importers who have reported goods but have provided incorrect, incomplete or untrue information in the mandatory fields of the permit, license, certificate, cargo control document etc.The penalty carries a $150.00 penalty for the first offense, $225.00 for the second and $450.00 for the third and subsequent offenses.

Contravention 336

Person failed to pay duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act.The Third highest single contravention for this period was Contravention 336. 330 AMPS were issued for this contravention and this represented 7% of the total.Non-Compliance occurs when an importer fails to pay their K84 in full by the date specified on the K84 or their customs broker short remits the K84 when the importer uses the Importer Direct Security or GST Direct Payment Options and the Importer does not pay.The penalty is a flat rate of $100.00 per instance.It is important to conduct compliance checks within your company to ensure that data provided to and from your trade chain partners is correct and complete to avoid costly penalties and delays in the delivery and payment of goods.Pacific Customs Brokers is a Compliance Broker and offers services with providing ACI data on your behalf to CBSA or Accounting Documents and payment.

Contact us directly and we can help ensure that you or your company meets all the compliance requirements of CBSA pre-arrival and post arrival. Have one of our experts provide a quote to review or execute your import on your behalf:

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While we strive for accuracy in all our communications, as the Importer of Record it is incumbent upon your company to ensure that you are aware of the requirements under the new regulations so that you maintain compliance as always.