How To Avoid ACI eManifest Penalties Triggered By Voluntary Entries

How To Avoid ACI eManifest Penalties Triggered By Voluntary Entries

Large fines of up to $8,000 per shipment can occur for carriers not in compliance with the Canada Border Services Agency (CBSA). With the introduction of monetary fines in January 2016, compliance is more important than ever. CBSA may issue penalties for submissions that are incomplete, inaccurate, or intentionally false. In addition, there are strict time frames for transmitting the required information which if not adhered to can result in fines.

Who Is Responsible For Providing Cargo And Conveyance Pre-Arrival Data?

Carriers are liable to ensure all information provided to CBSA, including pre-arrival information, is true, accurate and complete. The operator of the conveyance that transports the goods to Canada is solely liable for providing all cargo and conveyance pre-arrival information via electronic means to CBSA.

Where business arrangements exist, another carrier may provide the pre-arrival cargo data to CBSA; however, it is the conveyance operating carrier that remains liable for the pre-arrival cargo and conveyance transmitted to CBSA.

The conveyance operating carrier should ensure all cargo carried in the conveyance has been transmitted to CBSA prior to arrival. This is the time to ensure a complete compliance strategy is in place with the carrier submitting the cargo to CBSA and the transporting carrier (if different) so there are no discrepancies which could result in penalties assessed against the transporting carrier.

What Are The Penalties?

Penalties for not submitting Advanced Commercial Information (ACI) eManifest are applied to each shipment. The penalty is $2,000 per shipment for first occurrence, $4,000 per shipment for second occurrence and $8,000 per shipment for third and subsequent occurrences.

Carriers have also been assessed this penalty when they fail to report cargo after the fact via an amendment to the original ACI conveyance report filed. Importers who receive goods which were delivered to them without official Customs release will voluntarily declare goods via a B3 type voluntary entry. The submission of the voluntary entry triggers the CBSA to assess a penalty against the carrier who transported the goods into Canada because the goods were delivered to the importer without reporting the cargo to CBSA. The transporting carrier should have amended their conveyance report to CBSA to report the cargo delivered or found after the conveyance was released at the first port of arrival into Canada. If the cargo was not reported via an amendment to the original ACI transmission then the penalty assessed by CBSA against the transporting carrier will be upheld.

How The Administrative Monetary Penalty System (AMPS) Would Affect Your Bottom Line?

How A Carrier Can Avoid Penalties For Not Reporting Cargo?

To avoid penalties for not reporting cargo, carriers should ensure that all cargo carried has been reported via ACI and accepted prior to arriving at the first port of arrival into Canada. If cargo is found after the fact, the transporting carrier should amend their report as soon as possible and before the importer submits their voluntary entry.

Trade Advisory Services

Pacific Customs Brokers can review and prepare AMPS appeals. Our Trade Advisors will work with you to guide your business through the appeal process and avoid incurring further penalties.

Trade Advisor Compliance Regulations
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About the Author
Jan Brock

Jan Brock joined PCB Customs Brokers in 2015 as a Senior Trade Advisor. She retired from Canada Border Services Agency (CBSA) in 2015 after serving more than 37 years. Jan started her career with CBSA as a summer student in 1976 and worked part-time until she graduated from U.B.C. with a Bachelor of Education Degree in 1980 . Shortly after graduating from U.B.C. Jan worked full time as an inspector with CBSA and within three years was promoted to Superintendent. She served some time in the Regional Operations office as an Operations Review Officer before she was promoted to Chief of Operations first at the Customs Mail Centre, then in the Metro District as the Commercial Chief and ending her career as a Chief at Pacific Highway Commercial Operations where she served as Chief from 1992 to 2015. During her career she was a member of the Customs Drug Team and a trainer in the National Enforcement Program. Jan also served as the Regional Coordinator Officer Powers and Use of Force for the Pacific Region. Jan served on many Commercial Program Reviews and committees both national and regional during her career and possesses an expansive knowledge of importing and exporting into and from Canada.

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.