Importers Be Warned: Canada Customs Announces Increased Administrative Monetary Penalties (AMPs) as of April 1

The Canadian Border Services Agency (CBSA) plans to increase Administrative Monetary Penalties (AMPs) for trade non-compliance, effective April 1, 2019.

This follows criticism from the Auditor General of Canada in his 2017 Audit of Customs Duties that the CBSA’s AMPs are too low to improve compliance with trade programs.

The CBSA had initially intended to complete its AMPs review and implement changes by June 2018, but extended the period to allow for thorough consultations and the submission of a public report to the House of Commons Public Accounts Committee.

A Customs Notice with details of the changes will be published on the CBSA website this week to give time to prepare for the April 1st implementation date.

To ease the transition to the new penalty structure, the CBSA will reset the penalty level to the first level for all existing contraventions importers may have. 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 maximum AMP of $25,000 will remain unchanged.

Ciffa