Administrative Monetary Penalty System


Person failed to pay within 90 days duties relieved under section 89 of the Customs Tariff, on goods that entered into a process that produced merchantable scrap or waste that was not eligible for relief.


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


Non-compliance is discovered during an audit, verification or examination.

Applied against the importer.

Any scrap or waste product that has value, and remains in Canada, is liable for the amount of duties owing at the classification and rate applicable at the time the scrap or waste is produced.

For errors discovered during a first audit, review or verification, a first level penalty will apply under subsection 89(3) of the Customs Tariff.

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.



Customs Tariff, subsection 122(1)


D7-4-1, Duties Relief Program


D7-4-2, Duty Drawback Program

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