Administrative Monetary Penalty System
Person who imports commercial goods or causes commercial goods to be imported failed to keep the prescribed records at the specified place in the prescribed manner and for the prescribed period.
- Penalty basis
- Per audit
- Retention period
- 36 months
Non-compliance occurs when an audit, verification, inspection or examination determines that a person has not kept all of the prescribed records in the prescribed manner in respect of an importation of commercial goods at their place of business in Canada or at a place designated by the Minister for a period of 6 years following the importation.
The prescribed records are those that are identified in section 2 of the Imported Goods Records Regulations. The regulations require the person keep, in respect of commercial goods, all records that relate to:
- origin, marking, purchase, importation, costs and value of the commercial goods;
- payment for the commercial goods;
- the sale or other disposal of the commercial goods; and
- any application for an advance ruling made under section 43.1 of the Act in respect of the commercial goods.
The prescribed manner in which these records must be kept is identified in section 4 of the Imported Goods Record Regulations. The regulations require that the records are kept in a manner that enables an officer to perform detailed audits and to obtain or verify information on which a determination of the amount of duties paid, payable, deferred, refunded, or relieved was made.
The prescribed records are to be kept at the person’s place of business in Canada or at a place designated by the Minister. The place designated by the Minister is any location where the person has requested and received authorization from the Canada Border Services Agency in accordance with D17-1-21 Maintenance of Records in Canada by Importers.
This penalty is normally applied by a Senior Officer Trade Compliance (SOTC) or investigations officer and approved by the regional Manager, Trade Compliance or the regional Manager, Investigations.
SOTCs should use discretion when deciding how much time to allow the person to demonstrate that they are compliant. Thirty days may be considered reasonable.
This contravention is subject to a flat penalty amount of $25,000.
For failure to make records available, see C157.
D17-1-21, Maintenance of Records in Canada by Importers