Administrative Monetary Penalty System (AMPS) (CBSA)
|
đ This article is part of the Customs Glossary Guide |
Administrative Monetary Penalty System (AMPS)
The civil penalty regime used by the CBSA to deter non-compliance with customs and trade legislation.
Overview
The **Administrative Monetary Penalty System (AMPS)** is a sanctions regime managed by the **Canada Border Services Agency (CBSA)**. It allows the agency to issue monetary penalties to commercial clientsâincluding carriers, importers, and brokersâwho violate trade and border legislation.
Unlike criminal prosecution, AMPS is a civil mechanism designed to encourage **voluntary compliance**. It aims to create a "level playing field" by ensuring there is a financial cost for non-compliance, thereby removing the competitive advantage of cutting corners.
AMPS vs. Seizures: AMPS is typically used for technical infractions (e.g., data errors, late reporting), whereas **seizures** are reserved for more serious offenses like smuggling or gross negligence.
Penalty Structure & Amounts
Penalties are issued via a Notice of Penalty Assessment (NPA), formally known as **Form E650**. The system is graduated, meaning penalties increase with repeat offenses.
Graduated Penalties
Most contraventions follow a three-tier structure based on the retention period (usually 3 years):
- 1st Level: A warning or lower fine (e.g., $500 - $2,000).
- 2nd Level: A significantly higher fine (e.g., $750 - $4,000).
- 3rd Level: The maximum fine for that infraction (e.g., $1,500 - $8,000).
Note: The maximum penalty amount for a single contravention is $25,000 CAD, though a single audit could result in multiple penalties exceeding this total.
The Master Penalty Document (MPD)
All possible violations are listed in the **Master Penalty Document**. Each violation is assigned a 4-digit code (e.g., C004, C378).
Common Carrier Penalties
For highway carriers and ACI eManifest users, the following are the most frequent AMPS penalties:
| Code | Penalty (1st) | Reason for Penalty |
|---|---|---|
| C378 | $2,000 | Failure to submit pre-arrival data. Issued when a carrier arrives at the border without having an ACI eManifest on file 1 hour prior to arrival. |
| C021 | $2,000 | Failure to report goods. Issued when a carrier transports goods into Canada but fails to report them to the CBSA at the nearest open office (e.g., failing to present a lead sheet). |
| C358 | $1,000 | Unauthorized removal of goods. Issued when a carrier or warehouse operator allows goods to move inland or be delivered before they are Customs Released. |
| C005 | $500 | Incorrect information. Issued when data submitted to the CBSA is not "true, accurate, and complete" (e.g., wrong weight, wrong cargo description). |
Appeals & Recourse
If you receive a Notice of Penalty Assessment (NPA), you have the right to dispute it. You typically have 90 days from the date of the notice to file a request.
1. Correction (Obvious Errors)
If the penalty contains a clerical error (e.g., wrong client ID, calculation error), you can request a **correction** from the issuing CBSA office. This is a faster informal process.
2. Redress (Formal Appeal)
If you dispute the facts or the application of the law, you must request a formal review by the **Recourse Directorate**. This can be done online via the **CARM Client Portal** or by mail.
3. Penalty Reinvestment Agreement (PRA)
In some cases, the CBSA may allow a **Penalty Reinvestment Agreement**. This allows a company to invest the penalty amount into upgrading their own compliance systems (e.g., software, training) rather than paying the government, provided they can demonstrate the error was systemic.
Official Resources
- CBSA Master Penalty Document: Searchable List of Contraventions
- Memorandum D22-1-1: Administrative Monetary Penalty System Policy
- CARM Portal: Submit an Appeal Online
- Form E650: Sample Notice of Penalty Assessment