Requesting a Correction
If you believe that an action taken (penalty assessment, seizure or ascertained forfeiture) by the CBSA was issued in error, you may contact the issuing CBSA office to request a correction within 90 days of the date of your notice. Errors must be evident to both parties and may include, but are not limited to, errors in calculation, name, address, contravention type, or amount assessed.
The Correction Process
The Customs Act (Subsection 127.1(1)) allows you to request a correction. The information contained in this document is related to penalties issued under the Administrative Monetary Penalty System (AMPS) program. Exceptions to the correction process are explained later in this document.
You may request a correction, or an agent may request a correction on your behalf. The request must be presented in accordance with the legislated time frame of 90 days. Your request must be made in writing and include justification and supporting documentation.
The CBSA will process a correction request from your agent if the agent is a licensed customs broker. The broker must hold an agency agreement with you that specifies the agent may deal with AMPS-related matters and be able to submit it upon request. In all other situations, one of the following must be submitted along with the correction request:
- a copy of the agency agreement between you and the agent; or
- a letter of authorization on company letterhead, signed by a company official, confirming the authority to act on your behalf in the correction process.
A correction can be requested if:
- Client information is incorrect
Example: you receive a Notice of Penalty Assessment (NPA) in which the officer entered your client identification number in error. The penalty should have been issued and served to another client instead.
- The penalty level is incorrect
Example: you have received a level one penalty but it was cancelled. You are later issued the same penalty but at the second level. You can request to have it corrected and lowered to the correct level.
- The penalty amount assessed is incorrect
Example: clear and obvious clerical or typographical errors exist regarding quantity, number of boxes, or an incorrect currency which affected the calculation of the penalty amount.
- Additional information was sent after the penalty was issued
Example: you can provide documentation that a permit was applied for prior to submitting a release request for shipments requiring automated permits.
- Required payment of duties was made within prescribed time limits
Example: you paid your K84 on time but at a different location outside of the business hours of the accounting office. Submit proof of K84 payment within prescribed time limits to the accounting office.
Situations where a correction cannot be requested
There are situations where a penalty was issued but it is not possible to request a correction. These exceptions include, but are not limited, to:
- Actions taken for non-compliance with currency legislation, such as infractions to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
- A systems outage causes a late accounting or transaction payment. Should this be the case, you may request a waiver of penalty or interest through the office where the release of goods took place.
- A redetermination is necessary prior to the correction of an incorrectly-calculated penalty. Depending on the outcome of the B2 process, you can submit an adjustment of the penalty calculation through a redress request. Corrections are for adjustments to the penalty calculation and not accounting data.
- The correction request cannot be processed within the 90-day time frame. This may be due to a request being submitted by a client near the end of the 90-day time limit, or when the client fails to submit additional information in a timely manner when such information was requested by customs. In this case, your request will be transferred to the Recourse Division for redress processing.
- The correction request goes beyond the correction authority under subsection 127.1(1) and is in fact a redress request.
Submitting your request for correction
To request a correction, send a written request with supporting documents to the CBSA office address indicated on the NPA document. Should you send your request to a different CBSA office, please note that this may add to the correction processing time frame as the request must be forwarded to the NPA issuing office.
Your letter must provide enough information to identify the penalty for which a correction is requested. The mandatory information required to process a correction includes:
- client name and identification number (if applicable):
- name and telephone number of a contact person;
- number of the NPA;
- description of your concerns and reasons for your request; and
- proof of payment (K21 cash receipt), when applicable.
Note: If the request is submitted by an agent other than a broker, a letter of authorization from the client must accompany the request.
After you submit your request
If you are not satisfied with the correction decision, a redress review may be requested.
Questions may be directed to the issuing office noted on the NPA.