Administrative Monetary Penalty System
C274

Contravention

Person provided information to an officer that is not true, accurate and complete.

Goods reported as arrived for customs processing when they are not arrived.

Penalty

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

Guidelines

Non-compliance occurs when the importer/broker submits a post arrival release request (i.e. RMD) prior to the authorized time frames for the release of goods.

  • Applies if a RMD was submitted or transmitted by the importer or broker, despite the fact that the carrier had clearly indicated that the goods had not arrived by means of a future estimated time of arrival (ETA).
  • In the case of a RMD, the importer / broker should supply customs with a copy of the cargo control document provided by the carrier. If the carrier did not indicate an ETA or provided an incorrect ETA for the arrival of the goods, the importer should not receive a penalty.
  • In the case of a release request (i.e. RMD) presented prior to the arrival, "per instance" pertains to "per transaction" that is submitted to customs by the importer or broker outside of the authorized time frames regardless of the number of shipments attached to the RMD.

Non-compliance also occurs when the sender of a Release Notification System (RNS) arrival message (i.e. sufferance warehouse operator or carrier) submits the RNS prior to the authorized time frames for the release of goods.

  • If a RNS arrival certification was transmitted, despite the fact that the carrier had clearly indicated that the goods have not arrived by means of a future ETA, the penalty would apply to the person who transmitted the arrival notice (in most cases the sufferance warehouse operator).
  • In the case of an RNS "arrival" message sent prior to the arrival, "per instance" pertains to each "cargo control number" that was transmitted to customs as "arrived" outside of the authorized time frames by the carrier or sufferance warehouse operator.

In both situations, the importer RMD submission and the RNS arrival, the goods must either be at the customs office (i.e. sufferance warehouse) of clearance or en route to the customs office of clearance, according to the time frames for the release of goods.

The officer will use discretion as to the time frame that the goods must be made available for examination, i.e. where the goods must be on hand for a RMD, in the case of a freight forwarder deconsolidation, the sufferance warehouse operator will be given an opportunity to show that the goods are at least in the warehouse compound and will be off-loaded into the warehouse for examination within a reasonable amount of time.

In the case where the goods must be on hand at the time of the release request, and there are multiple containers documented on one cargo control document (against one release request), at least one of the containers must have arrived at the destination sufferance warehouse at the time the release request is submitted. The remaining containers must have arrived at the port of report and be en route or awaiting furtherance to the inland destination.

For situations where the goods are not available for examination, see C026.

The following tables summarize the earliest acceptable release time frames for the arrival of goods by the various modes of transport and service options:

Release time frames for the arrival of goods by the various modes of transport and service options

Primary Document
Cargo control document issued by carrier who reports the arrival of the goods at the first point of arrival in Canada.
Secondary Document
Remanifest, housebill or abstract cargo control document issued by carrier, forwarder or agent.
Air
Release Service Option and Condition Carrier Document type on RMD or PARS Earliest Time Frame to Report Arrival of PARS or Submit a RMD According to Conveyance Arrival
PARS – Received and processed Primary or Secondary Wheels up to destination customs office
RMD – Cargo data made available to customs in an electronic format for pre-arrival review Primary Wheels up to destination customs office
RMD – Cargo data not made available to customs in an electronic format for pre-arrival review Primary or Secondary Arrival at destination customs office
Rail
Release Service Option and Condition Carrier Document type on RMD or PARS Earliest Time Frame to Report Arrival of PARS or Submit a RMD According to Conveyance Arrival
PARS – Received and processed Primary or Secondary 1 hour non-stop to Canada
RMD – Cargo data made available to customs in an electronic format for pre-arrival review Primary 1 hour non-stop to Canada
RMD – Cargo data not made available to customs in an electronic format for pre-arrival review Primary or Secondary Arrival at destination customs office
Marine
Release Service Option and Condition Carrier Document type on RMD or PARS Earliest Time Frame to Report Arrival of PARS or Submit a RMD According to Conveyance Arrival
PARS – Received and processed Primary or Secondary 12:01 a.m. on day of vessel arrival at customs office of cargo report
RMD – Cargo data made available to customs in an electronic format for pre-arrival review Primary 12:01 a.m. on day of vessel arrival at customs office of cargo report
RMD – Cargo data not made available to customs in an electronic format for pre-arrival review Primary or Secondary Arrival at destination customs office
Highway
Release Service Option and Condition Carrier Document type on RMD or PARS Earliest Time Frame to Report Arrival of PARS or Submit a RMD According to Conveyance Arrival
PARS – Received and processed Primary or Secondary Arrival in Canada
RMD – Any Primary or Secondary Arrival at destination customs office
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