Further to a scathing report issued by the Auditor General and in order to increase importers’ compliance levels, the CBSA has seen fit to increase penalties under its Administrative Monetary Penalties (AMPs) regime on 22 current contraventions. Customs Notice 19-05, which provides additional information on these changes to AMPs can be found here.
For most of the contraventions, penalty amounts at the “first level” have been increased from $150 to $500; “second level” infractions have been increased from $225 to $750; with “third level” penalties increasing from $450 to $1500.
The CBSA has indicated that these changes will be in effect as of April 1, 2019, and that the maximum AMPs penalty at the first level will continue to be capped at $25,000. In addition, importers who have been subject to AMPs penalties will have their penalty level “reset” to avoid the issuance of second and third level penalties at the newly-imposed higher levels.
Importers would be well-advised to take this change in approach concerning punitive penalties by the CBSA to ramp up their compliance levels and to take corrective measures, where necessary, to avoid potential penalties that the CBSA will now look to issue under audit. This is a key take-away since it is specifically during an audit that the CBSA can identify repeat errors and omissions and where significant penalties could potentially be imposed.
Please contact your local representative or a member of our advisory team (firstname.lastname@example.org) to see how Delmar can assist and guide you through the intricacies of customs legislation and regulations. Our Customs Assessment Review Engagement (CARE) diagnostic can provide importers and exporters alike with the necessary tools to manage customs risk within the ever-changing customs compliance environment.