For many Canadian importers, customs compliance feels straightforward: submit the paperwork, pay duties and taxes, and move on.

But the Canada Border Services Agency (CBSA) doesn’t see it that way.

Under the Administrative Monetary Penalty System (AMPS), even small mistakes can lead to financial penalties, repeated enforcement actions, and increased scrutiny, often long after the goods have cleared.

As enforcement tightens and data reviews become more automated, AMPS penalties are no longer rare or reserved for large corporations. SMBs, e-commerce sellers, and first-time importers are increasingly affected.

Understanding what triggers AMPS and how to prevent it is now essential.

What Is CBSA AMPS?

AMPS is CBSA’s penalty framework for non-compliance with customs legislation.

Instead of criminal charges, CBSA issues monetary penalties for errors related to:

  • Import declarations
  • Valuation
  • Classification
  • Origin
  • Recordkeeping

Penalties can range from hundreds to tens of thousands of dollars, and repeat violations escalate quickly.

Importantly, intent does not matter. Honest mistakes still trigger penalties.

Why AMPS Enforcement Is Increasing

Several factors are driving higher AMPS activity:

  • Increased import volumes, especially e-commerce
  • More post-release verifications and audits
  • Better data-matching across invoices, payments, and declarations
  • Greater focus on importer self-accountability
  • Reduced tolerance for “courier-handled” errors

This mirrors trends seen in stricter audit environments, which Canadian businesses exporting or importing cross-border are already experiencing.

The Most Common Importer Errors That Trigger AMPS

Below are the highest-risk mistakes CBSA penalizes, along with why they happen.

1. Incorrect HS Classification

Why does it trigger penalties?
HS codes determine duty rates, trade program eligibility, and compliance requirements. Incorrect classification directly impacts revenue.

Common causes:

  • Reusing supplier-provided HS codes without verification
  • Using outdated tariff codes
  • Applying “similar” product codes across different SKUs

Result:
CBSA reassesses duties and issues AMPS penalties, often per line item.

2. Incorrect Valuation of Goods

Why does it trigger penalties?
Declared value must reflect the true transaction value, including certain assists, royalties, and adjustments.

Common mistakes:

  • Excluding tooling, molds, or design costs
  • Declaring FOB when CIF applies
  • Currency conversion errors
  • Inconsistent invoice vs. payment values

Valuation errors are among the fastest ways to trigger penalties during post-release review.

3. Incorrect Country of Origin Declarations

Why does it trigger penalties?
Origin affects duty rates, trade agreement eligibility, and admissibility.

High-risk scenarios:

  • Claiming CUSMA/USMCA without valid documentation
  • Using “Made in” labels incorrectly
  • Declaring shipping origin instead of manufacturing origin

These errors frequently surface during verifications tied to preferential tariff claims.

4. Failure to Correct Errors (B2 Adjustments)

CBSA expects importers to self-correct errors within prescribed timeframes.

Failing to file a B2 adjustment after discovering an error is itself an AMPS violation.

If you’re unfamiliar with this process, this guide breaks it down clearly.

5. Poor or Incomplete Recordkeeping

Legal requirement:
Importers must retain records for six years.

Common failures:

  • Missing commercial invoices
  • No proof of payment
  • Incomplete origin documentation
  • Lost broker entry summaries

CBSA can issue AMPS penalties even if the original declaration was correct, simply due to missing records.

6. Over-Reliance on Couriers or CLVS

Many businesses assume courier shipments are “low risk.”

They’re not.

Misuse of the Courier Low Value Shipment (CLVS) program often results in:

  • Incorrect declarations
  • Missing importer accountability
  • Repeated errors across shipments

Learn why businesses get this wrong here.

7. Inconsistent Information Across Documents

CBSA cross-checks:

  • Commercial invoices
  • Packing lists
  • Entry data
  • Payment records

Even small mismatches, quantities, descriptions, or values can trigger penalties during verification.

How AMPS Penalties Escalate

AMPS penalties are progressive.

  • First occurrence: warning or low-value penalty
  • Repeated violations: higher penalties
  • Ongoing non-compliance: increased audit frequency

This creates a cycle where unresolved issues lead to constant enforcement pressure.

How to Avoid AMPS Penalties: A Practical Compliance Framework

1. Verify HS Codes, Don’t Assume

  • Validate classifications independently
  • Document rationale
  • Review annually

2. Standardize Commercial Invoices

Use consistent:

  • Product descriptions
  • Values
  • Incoterms
  • Country of origin

This is especially critical for cross-border shipments.

3. Build a B2 Correction Process

  • Identify errors quickly
  • File corrections proactively
  • Don’t wait for CBSA to find them

4. Maintain Centralized Digital Records

Store:

  • Invoices
  • Proof of payment
  • Broker summaries
  • Certificates of origin

Quick access reduces penalty risk during reviews.

5. Review Courier & Consolidation Strategies

Understand when CLVS applies, and when it doesn’t.

For growing businesses, consolidation often improves accuracy and compliance:

6. Conduct Internal “Mini Audits.”

Quarterly spot checks can catch:

  • Misclassification
  • Valuation drift
  • Documentation gaps

These checks often prevent penalties before they start.

Conclusion

AMPS penalties don’t happen because businesses break the rules on purpose; they happen because systems aren’t built for accuracy and consistency.

The good news?

Most penalties are entirely preventable with proper classification, valuation discipline, documentation control, and timely corrections.

Want to reduce your AMPS exposure before CBSA finds an issue? Start with Clearit Canada’s Quick Start Guide to Stress-Free Importing and build a compliance framework that stands up to scrutiny.

FAQs

Are AMPS penalties discretionary?

No. Penalties are applied based on regulatory triggers, not intent.

Can AMPS penalties be appealed?

Yes, but appeals require strong documentation and are not guaranteed.

Do small importers face AMPS penalties?

Yes. CBSA applies the same rules regardless of importer size.

How far back can CBSA issue penalties?

CBSA can review transactions up to six years back.

Does using a customs broker eliminate AMPS risk?

No. Importers remain legally responsible, even when using a broker.

Are courier shipments exempt from AMPS?

No. Courier shipments are fully subject to CBSA enforcement.