Administrative Monetary Penalty System
C320

Contravention

Person failed to repay amount or portion of refund, drawback or interest to which they were not entitled.

Penalty

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

Guidelines

Non-compliance occurs when the person fails to repay the amount over and above the amount of the refund, drawback, or interest for which he was eligible, on the day that the refund or drawback is received.

Non-compliance is discovered as result of a review or verification.

Applied against the person who was not eligible for a refund, drawback, or interest or who has not repaid any amount over and above that for which he was eligible.

Where the overpayment is a result of a change of information from a third party about whom the client has no knowledge, the penalty will not apply.

References

Legislation

Customs Tariff, subsection 114(1)

D-Memo

D7-4-1, Duty Deferral Program

Other

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