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ABOUT AMPS
About AMPS
AMPS is the Customs penalty system enforced by Canada Customs and Revenue Agency, a component of its
Customs Action Plan. The purpose of AMPS is to replace seizure and forfeiture provisions with
large fines for most technical infractions. It covers any contravention of the Customs Act,
Customs Tariff Act, and Special Import Measures Act, and all related regulations, licence conditions, or
undertakings.
Bill S-23, amending the Customs Act, Customs Tariff Act, and Special Import Measures Act
(SIMA), came into force on November 29, 2001. The AMPS Sanctions group launched AMPS in December 2001,
and the regulations have been in full effect since October 7, 2002.
How it impacts your business
All companies who are non-compliant with requirements of Customs are affected. First and foremost,
businesses are subject to substantial cash penalties. Goods may be detained at border ports until
the penalties are collected. Compliance records are linked to Customs facilities, ensuring enforcement.
Also, privileges can be revoked, and participation in preferential programs can be denied.
How the penalties work
Penalties can be assessed either as a flat rate, or as a percentage of the value for duty of
the goods involved. Most penalties are graduated, meaning that a second incident of the
same infraction results in a higher penalty. A third and subsequent infraction results
in a penalty that is higher again. The maximum penalty per contravention is $25,000.
For example, the penalties for "failure to report" a commercial importation of goods valued at
$1600 or greater are:
1st infraction — $1,000 or 5% of the value for duty, whichever is greater
2nd infraction — $2,000 or 10% of the value for duty, whichever is greater
3rd infraction — $3,000 or 20% of the value for duty, whichever is greater
Ways to protect yourself
The best way to protect yourself is to have a Broker who is knowledgable with the Customs regulations,
and to examine and refine your current practices. MSR eCustoms is the industry leader in Brokerage
services, Contingency Audit, and Periodic Verification Audits, and can help bring your company into ongoing
compliant operations, very substantially reducing your risk of penalties.
Some of the key alert areas are:
Origin — The first penalty will act as a warning of the problem that must be addressed. The
importer is ultimately responsible for ensuring that the goods comply with all regulations.
They must inform the Exporter about import requirements, though Exporters are not subject
to Canadian law because they are not residents of Canada, and therefore cannot be penalized.
OGD — You must present permits from other government departments at the time of release.
NAFTA — The Importer must have the Certificate of Origin in his or her possession when claiming
NAFTA. The Broker is not responsible as they are merely an agent of the Importer.
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