Administrative Monetary Penalty System
C217

Contravention

Person failed within 90 days after the date of the diversion to pay the amount of the drawback and the amount of any interest granted.

Penalty

Occurrence Penalty
1st $300
2nd $450
3rd and subsequent $900
Penalty basis
Per audit
Retention period
36 months

Guidelines

Non-compliance occurs when a drawback has been granted by reason of a deemed exportation and the goods are not subsequently exported but are diverted to an unqualified use and the person fails to pay the amount of the drawback and any interest granted on the drawback.

Applied against the importer.

Contravention does not occur until 90 days after diversion.

For errors discovered during a first verification or audit, a first level penalty will apply.

For errors discovered during a second verification or audit, a second level penalty will apply.

Third level penalty applies for errors discovered during a third or subsequent verifications or audits.

When person fails to report diverted goods that were deemed exported, see C216.

References

Legislation

Customs Tariff, paragraph 118(2)(b)

D-Memo

D7-4-2, Duty Drawback Program

Other

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