{"id":6093,"date":"2026-01-19T01:04:48","date_gmt":"2026-01-19T06:04:48","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=6093"},"modified":"2026-01-22T15:41:40","modified_gmt":"2026-01-22T20:41:40","slug":"cbsa-prior-disclosure-penalty-relief","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/cbsa-prior-disclosure-penalty-relief\/","title":{"rendered":"When CBSA Finds an Error: Your Options for Prior Disclosure and Penalty Relief"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Most importers don\u2019t get into trouble with CBSA because they meant to do something wrong.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They get into trouble because something was classified incorrectly, valued incorrectly, or declared incorrectly, and it wasn\u2019t fixed fast enough.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2025, with stronger enforcement, deeper data analytics, and increased post-import verification through programs like <\/span><a href=\"https:\/\/ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca\/en\/\"><span style=\"font-weight: 400;\">CARM<\/span><\/a><span style=\"font-weight: 400;\">, CBSA is finding more errors than ever before. When they do, you\u2019re faced with a critical question:<\/span><\/p>\n<p><b>Do you wait for CBSA to assess penalties, or do you take control of the situation proactively?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Two tools determine the outcome: <\/span><b>Prior Disclosure<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Petitions for Mitigation<\/b><span style=\"font-weight: 400;\">. Before we break these down, if you\u2019re new to how penalties and assessments work in Canada, read our detailed guide on <\/span><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/cbsa-amps-penalties-importer-errors\/\"><b>how CBSA AMPs and penalties arise from importer errors<\/b><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why CBSA Cares About Import Errors<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">CBSA\u2019s job is to ensure that every commercial import is:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Correctly classified<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Properly valued<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Declared with the right country of origin<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Assessed for the right duties and taxes<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Even small errors affect not just revenue, but trade statistics, safety enforcement, and trade policy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why CBSA runs:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Post-release verifications<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Compliance audits<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Risk-based targeting programs<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Ongoing data analysis under CARM (the <\/span><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/what-is-carm\/\"><span style=\"font-weight: 400;\">Canada Border Services Agency\u2019s<\/span><\/a><span style=\"font-weight: 400;\"> modern compliance transformation)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And when errors are found, CBSA expects importers to correct them, not ignore them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re unsure whether your imports are being reported as commercial vs. casual (which affects compliance obligations and penalties), check out our comparison <\/span><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/casual-vs-commercial-importers-canada\/\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Happens When CBSA Finds a Problem<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">CBSA may identify errors through:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> An audit or post-release verification<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 A B2 adjustment review<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Courier or broker data<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Pattern analysis across shipments<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Once an issue is detected, CBSA can:<\/span><\/p>\n<div id=\"attachment_6096\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img aria-describedby=\"caption-attachment-6096\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-6096\" src=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/\/2026\/01\/What-Happend-when-CBSA-finds-a-problem.jpg\" alt=\"Infographic showing the steps CBSA may take when a compliance issue is found, including reassessing duties, applying penalties, and opening broader reviews.\" width=\"1024\" height=\"535\" srcset=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/What-Happend-when-CBSA-finds-a-problem.jpg 1024w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/What-Happend-when-CBSA-finds-a-problem-300x157.jpg 300w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/What-Happend-when-CBSA-finds-a-problem-768x401.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-6096\" class=\"wp-caption-text\">CBSA may reassess duties, apply AMPs, charge interest, or expand compliance reviews when import issues are identified.<\/p><\/div>\n<ul>\n<li><span style=\"font-weight: 400;\"> Reassess duties and taxes<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Apply Administrative Monetary Penalties (AMPs)<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Demand back payments with interest<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Open broader compliance reviews<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">At that point, your options narrow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s why acting early matters.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Is a Prior Disclosure?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A Prior Disclosure allows an importer to voluntarily disclose an error to CBSA before the agency formally identifies it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It applies when an importer identifies errors such as:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Incorrect HS codes<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Wrong country of origin<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Undervalued goods<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Missing duties or taxes<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By coming forward first, you demonstrate good faith and compliance intent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When accepted, a Prior Disclosure can:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Eliminate AMPs penalties<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Reduce interest exposure<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Limit enforcement escalation<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">CBSA still collects the duties and taxes owed, but the financial and legal consequences are far less severe.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">When a Prior Disclosure Is No Longer Available<\/span><\/h2>\n<div id=\"attachment_6099\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img aria-describedby=\"caption-attachment-6099\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-6099\" src=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/\/2026\/01\/What-Is-a-Prior-Disclosure-.jpg\" alt=\"Infographic explaining what a prior disclosure is, including eliminating AMPs, reducing interest exposure, and limiting enforcement escalation.\" width=\"1024\" height=\"535\" srcset=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/What-Is-a-Prior-Disclosure-.jpg 1024w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/What-Is-a-Prior-Disclosure--300x157.jpg 300w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/What-Is-a-Prior-Disclosure--768x401.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-6099\" class=\"wp-caption-text\">A prior disclosure allows importers to correct errors voluntarily and reduce penalties under CBSA compliance programs.<\/p><\/div>\n<p><span style=\"font-weight: 400;\">Once CBSA reaches out with a verification request, compliance letter, or audit notice, Prior Disclosure is no longer on the table.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s when the second tool, <\/span><b>Petitions for Mitigation<\/b><span style=\"font-weight: 400;\">, becomes critical.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What Is a Petition for Mitigation?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A Petition for Mitigation is used after CBSA has issued penalties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It allows you to request:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Reduction of AMPs penalties<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Cancellation in certain circumstances<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Relief based on compliance history or corrective actions<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Unlike a Prior Disclosure, this is not voluntary; it is a formal response to an enforcement action.<\/span><\/p>\n<div id=\"attachment_6098\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img aria-describedby=\"caption-attachment-6098\" decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-6098\" src=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/\/2026\/01\/what-is-a-petition-for-mitigation.jpg\" alt=\"Infographic showing the factors CBSA considers in a petition for mitigation, including intent, severity of violation, compliance history, and corrective actions.\" width=\"1024\" height=\"535\" srcset=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/what-is-a-petition-for-mitigation.jpg 1024w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/what-is-a-petition-for-mitigation-300x157.jpg 300w, https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-content\/uploads\/2026\/01\/what-is-a-petition-for-mitigation-768x401.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><p id=\"caption-attachment-6098\" class=\"wp-caption-text\">CBSA reviews multiple factors when assessing petitions for mitigation related to penalties or compliance violations.<\/p><\/div>\n<p><span style=\"font-weight: 400;\">When considering mitigation, CBSA looks at:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The nature and severity of the violation<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Whether it was intentional or inadvertent<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Your compliance history<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 What corrective action has already been taken<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Mitigation doesn\u2019t erase errors, but it can significantly reduce financial damage when used appropriately.<\/span><\/p>\n<p><b>Prior Disclosure vs. Petition for Mitigation \u2014 At a Glance<\/b><\/p>\n<table>\n<thead>\n<tr>\n<th><b>Situation<\/b><\/th>\n<th><b>Best Tool<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">You found an error before CBSA<\/span><\/td>\n<td><b>Prior Disclosure<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">CBSA already assessed penalties<\/span><\/td>\n<td><b>Petition for Mitigation<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Your goal is to avoid AMPs<\/span><\/td>\n<td><b>Prior Disclosure<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Your goal is to reduce already assessed penalties<\/span><\/td>\n<td><b>Petition for Mitigation<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Why Many Importers Miss Their Best Opportunity<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The most common importer mistake is waiting too long.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Hope CBSA won\u2019t notice<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Assume the broker will fix it<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2022 Treat small errors as negligible<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">But CBSA\u2019s systems are sophisticated. Small mistakes, repeated over time, turn into patterns, and patterns trigger enforcement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once CBSA opens a compliance file, the opportunity for voluntary correction disappears.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re feeling stuck before importing, or just need stress-free clarity on processes, check out <\/span><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/our-quick-start-guide-to-stress-free-importing\/\"><span style=\"font-weight: 400;\">our quick start guide to stress-free importing<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When CBSA identifies an import error, your response determines the outcome.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you act early, Prior Disclosure gives you control. If you wait, Petitions for Mitigation help manage the consequences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Compliance isn\u2019t about perfection. It\u2019s about clarity, accountability, and timely action. When importers understand their options, they turn compliance into a competitive advantage, not a liability.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">FAQs<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Can I still file a Prior Disclosure after CBSA contacts me?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">No. Once CBSA starts an audit or compliance review, Prior Disclosure is no longer available.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do I still have to pay duties if I disclose?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Yes. Duties and taxes must always be paid, but penalties may be waived with a Prior Disclosure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Can CBSA reject a Prior Disclosure?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Yes, if they determine the issue was already under review or insufficiently documented.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Does mitigation guarantee penalty relief?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">No, but it often reduces penalties significantly when presented appropriately.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How far back can CBSA reassess errors?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">For most commercial errors, CBSA can go back up to four years, which makes early action even more important.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most importers don\u2019t get into trouble with CBSA because they meant to do something wrong. They get into trouble because something was classified incorrectly, valued incorrectly, or declared incorrectly, and it wasn\u2019t fixed fast enough. In 2025, with stronger enforcement, deeper data analytics, and increased post-import verification through programs like CARM, CBSA is finding more [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":6094,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[749],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/6093"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=6093"}],"version-history":[{"count":3,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/6093\/revisions"}],"predecessor-version":[{"id":6100,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/6093\/revisions\/6100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/6094"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=6093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=6093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=6093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}