Canada Customs: Notice of Penalty Assessment

When receiving an AMPS penalty from Canada Customs (CBSA), 2 copies of a  notice of penalty assessment (NPA) will be sent directly to you, the importer, via registered mail. This NPA will detail the penalty as well as any costs associated. Notices of Penalty assessment are broken down into 2 parts:

  1. Administrative Details
    • Date of issue (used to calculate interest on penalty)
    • Penalty assessment number and office code (detailing in which customs office the penalty was applied)
    • Canada Customs Account & Legal Client name as well as identifier (BIN number, Carrier Code, sub-location)
    • Penalty Amount 

 

2.  Contravention Details

 

    • Reasons for penalty in complete detail
    • Identifier – alpha numeric identifier of penalty, begins with a “c” followed by three numbers
    • Legislative / Regulatory Authority: legislative or regulatory body administering penalty 
    • Calculations: information on how the penalty was calculated and applied
    • Payment Information: details the amount payable, where to pay, and any interest that would be applied (interest starts 30 days after penalty applied)
    • Review & enforcement action: If you believe a penalty was not applied properly or should not have been applied at all, here you will find the information to initiate a correction or review

Canada Customs Penalty 

 

Requesting a review or appeal of a Canada Customs AMPS penalty

If you spot an error on your AMPS notice or feel that the penalty was applied unfairly, there are options to have it reviewed or removed. For a correction, the CBSA issuing office (stated on the AMPS letter) must be notified within 30 days of penalty being applied (not the date of receipt). For a complete review, you have 90 days from the date the penalty was applied to initiate. 

 

Corrections process

As an importer you, or your customs broker can initiate a correction but before you have your customs broker file the request, be sure that the agency agreement (or power of attorney) indicates your broker may act on your behalf for AMPS related issues, if it does not, your request may be denied.  Corrections can be requested for any or all of the following reasons:

  • Penalty level is not correct
  • Your (client) information is incorrect
  • penalty amount is not correct
  • After the penalty was received, additional information was sent by the CBSA issuing party
  • Required duty & tax payments were in fact made on time (must have stamped proof)

 

Submitting a request for correction to Canada Customs 

In order to initiate the correction process, a written request letter (including supporting documents) must be submitted to the CBSA office which issued the penalty. If the request is sent to a different office, delays can be expected. The letter must contain the following information:

  • Name and identification number
  • GST/BN number (aka Importer Number)
  • Carrier Code: 4 digit code identifying commercial carrier
  • Sub-Location Code (if applicable): 4 digit code identifying the warehouse in which the goods are located
  • Contact information 
  • number of the Notice of Penalty Assessment 
  • Quick synopsis of concerns 
  • Proof of payment (if applicable)

 

Formal reviews

Requesting a formal review of a Canada customs entry requires slightly more information and work on your behalf and may require a specific form based on the type of penalty issued. For a list of example actions taken by the CBSA and their corresponding forms, click here. 

 

 canada customs pnalties

 

For more information on Canada Border Service Agency AMPS penalties, please contact Border Information Services at 1-800-461-9999