Administrative Monetary Penalty System


Person who is required by subsection 40(3) of the Customs Act to keep records in respect of commercial goods failed to keep records for a period of six years, or as specified in the Imported Goods Records Regulations.

This applied when an audit, verification or examination determines that there are no records in existence.


Occurrence Penalty
Flat rate $25,000
Penalty basis
Per audit
Retention period
36 months


Non-compliance occurs when an audit, verification or examination determines that a licensee of a duty free shop, sufferance warehouse or bonded warehouse has kept no records regarding the receipt and removal of commercial goods into and from the duty free shop or sufferance warehouse.

Applied against the licensee (warehouse or DFS), certificate holder (duty deferral), courier or CSA importer.

Because no records exist, the audit or verification team is unable to proceed with the verification and render a determination regarding the company's compliance with CBSA administered legislation and regulations.

Consultation with regional management and headquarters personnel must occur prior to the application of this penalty.

The officer should proceed with caution.

The officer should use discretion when deciding how much time to allow the company to prove that records exist. Thirty days may be considered reasonable as a minimum.

This contravention is subject to a flat penalty amount of $25,000.

Because the verification is stopped at the outset due to nil record keeping, no other determination regarding other record contraventions can be made.

No other penalty for record contraventions can be combined with this penalty.

Apply a penalty when records do not exist.



Customs Act, subsection 40(3)


D17-1-21, Maintenance of Records in Canada by Importers


Imported Goods Records Regulations, section 3.1

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