On October 7, 2002, the Canada Border Services Agency (formerly Canada Customs & Revenue Agency) implemented the Administrative Monetary Penalty System (AMPS) to encourage compliance with legislative, regulatory, and other program requirements and promote a level playing field for all clients.
This program gives the Canada Borders Services Agency (CBSA) the authority to issue penalties to:
- Bonded warehouses
- Duty free stores
- Customs brokers
If the above service providers fail to comply with any Customs regulations, AMPS penalties for the most part, take the place of the use of seizures and ascertained forfeitures.
If a company is found in non-compliance with a regulation or declaration, CBSA will document the contravention and issue a Notice of Penalty Assessment (NPA). The NPA will have a unique sequential identifier number assigned, a penalty amount, and a contravention number that outlines the reason for the penalty.
CBSA keeps the AMPS Client Contravention History on file for a period of three years. AMPS penalties can range from NIL to $25,000.00 per infraction. NPA(s) can sometimes exceed $25,000.00 if multiple contraventions are identified.
Some examples of AMPS penalties are:
- Failing to keep electronic records in a electronically readable format for prescribed period
- Failing to report imported goods at prescribed time and in prescribed manner at the nearest open customs office that is designated for that purpose
- Failing to answer truthfully questions asked by an officer with respect to goods
- Transporting, or causing to be transported, within Canada imported goods that have not been released without complying with prescribed conditions or giving prescribed security
- Failing to provide to chief officer of customs, on or before the day of exportation, information and all documents required under an Act of Parliament or its regulations that prohibit, contact, or regulate the exportation of goods.
Failure to pay NPA(s) can result in a suspension of importing privileges and collection action by the Assessment and Collections Branch.
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