Administrative Monetary Penalty System
C033

Contravention

Person moved, removed, or caused to be moved goods that have been reported but not released from a CBSA office or sufferance warehouse, without CBSA authorization.

Penalty

Occurrence Penalty
1st $1,000
2nd $2,000
3rd and subsequent $4,000
Penalty basis
Per shipment
Retention period
12 months

Guidelines

Non-compliance occurs in situations where goods have been reported under section 12(1) of the Customs Act:

  • to CBSA at First Port of Arrival (FPOA), however, the in-bond goods are moved without authorization or delivered to the consignee, without release; or
  • and are under CBSA control (at a CBSA office such as FPOA or inland office, highway frontier examining warehouse or a sufferance warehouse) and it is discovered by the CBSA that the goods have been removed from one of these locations without CBSA authorization.

Applied against a carrier or a sufferance warehouse operator.

Below are some examples of when C033 can be applied:

C033 is issued to the Carrier:

  • where a carrier removes reported goods from a CBSA office or highway frontier examining warehouse without CBSA authorization;
  • where goods have been reported to CBSA upon arrival at FPOA and the release of the goods will be affected at an CBSA inland office (the FPOA authorizes the bonded carrier to move the goods in-bond to an inland location for release) but the carrier directly delivers the goods to the importer/consignee rather than reporting to the inland office or sufferance warehouse;
  • where a carrier moves in-bond goods from FPOA directly to a location identified by a sub-locator code, other than what is indicated on the original cargo transmission; or
  • where a carrier has been directed to present the goods to a CBSA examining warehouse on form Y28 (Report to Warehouse), but fails to do so.

C033 is issued to the Sufferance Warehouse Operator:

  • where a sufferance warehouse operator has received in-bond goods and allows the removal of in-bond goods from the warehouse prior to release or authorization by CBSA; or
  • where a BSO discovers through secondary examination, monitoring activity, or an audit of the sufferance warehouse, that removal of in-bond goods has occurred prior to CBSA release;

Notes:

  • In all cases, this penalty applies only if the contravention is found during a CBSA examination, tracing procedure or an audit and there is evidence to support that a contravention to section 31 has been made.
  • This penalty will not be applied in situations where an importer, carrier or sufferance warehouse operator voluntarily discloses non-compliance to CBSA.
  • This penalty will not be applied in circumstances involving domestic goods bound for export.

In an audit situation, each shipment found in contravention within an audit will be assessed a penalty. For example, if five shipments were moved, a penalty of $5,000 (5 × $1,000) would be assessed at first level.

For transporting goods from point to point within Canada without the appropriate bond or security prior to release, see C036.

For removal of goods from a CBSA bonded warehouse or duty free shop, see C066.

References

Legislation

Customs Act, section 31

D-Memo

Other

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