Administrative Monetary Penalty System
C218

Contravention

Person failed to pay within 90 days duties relieved under section 89 of the Customs Tariff on the goods that entered into a process which produced by-product(s) not eligible for relief.

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 person failed to pay within 90 days, the duties relieved, under section 89 of the Customs Tariff, on goods that entered into a process, which produced a by-product not eligible for relief.

Applied against the importer.

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

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

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

References

Legislation

Customs Tariff, subsection 121(1)

D-Memo

D7-4-1, Duties Relief Program

Other

D7-4-2, Duty Drawback Program

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