Administrative Monetary Penalty System
C336

Guidelines

Non-compliance occurs and a penalty is assessed against an Importer or Customs Broker when they fail to pay amounts owing on B3 Transactions posted to the account by the date specified on the monthly Statement of Account (SOA).

B3 Transactions are located in the Transactions section of the SOA and the payment due date for those transactions is the due date for the SOA.

1. A penalty is assessed against an importer with account security when:
   1. The importer fails to pay the B3 transactions on the SOA, in full, by the date specified. This includes B3 transactions:
      • Filed by the Importer
      • Filed by the Broker for a client that is a participant in the Importer Direct Security Option as indicated with the letter “I” in Field 6 (Duties and all taxes)
   2. The penalty is assessed against the Importers Business Number - importer account (BN15).
2. A penalty is assessed against an importer that does not have account security when:
   1. The importer is a participant in the GST Direct Security Options and fails to pay the GST portion of B3 transactions on the SOA, in full, by the date specified on the SOA. This includes GST portion on B3 transactions filed by the Broker with the letter “G” in Field 6
   2. The penalty is assessed against the Importers Business Number - importer account (BN15).
3. A penalty is assessed against a customs broker when:
   1. The broker, working as an agent of the importer uses the customs broker account security bond to secure release of an importation prior to payment of duties and taxes and thereby posting security for payment, fails to pay the Transactions Section on SOA in full by the date specified on the SOA. This includes B3 transactions:
      • Filed by the Broker for a client with no account security and not on the G program
      • Filed by the Broker with the letter “G” in Field 6 – for all amounts excluding the GST portion.
      • Filed by the Broker for a client with account security but is not a participant in the Importer Direct Security Option “I”
   2. The penalty is assessed against the Customs Broker business number - importer account (BN15).

Non-compliance occurs and a penalty is assessed by a Senior Trusted Trader Officer against a CSA importer when:

• The total Revenue Summary Form (RSF) amount has not been remitted to a financial institution within the prescribed time limits.
• If RSF received, but no payment received at financial institution, the Senior Trusted Trader Officer will contact importer to determine if payment has been made at a CBSA office.

No penalty should be assessed in cases where:

• no interim payment (subject to late payment interest only); or
• payment made to CBSA office by last business day of month.

The following should be considered prior to issuing C336:

• verify if there was a notice issued by the Assessment Unit (HQ) to allow for late payment of the K84 without the interest or penalties in certain months of the year, and determine whether or not the procedures in the notice were followed properly;
• verify if a payment was made at another CBSA office.

Failure to remit duties, taxes, interest charges, and penalties owing to customs directly to financial institution, see C251.

Failure to provide the RSF to customs in the prescribed manner or within the prescribed time, see C250.

References

Legislation

Customs Act, subsection 33(2)

D-Memo

D17-1-5, Registration, Accounting and Payment for Commercial Goods

Other

• D11-6-5, Interest and Penalty Provisions: Determinations/Re-Determinations, Appraisals/Re-Appraisals, and Duty Relief
• D17-1-8, Release Prior to payment privilege
• Accounting for Imported Goods and Payment of Duties Regulations
• Agents' Accounting and Imported Goods & Payment of Duties Regulations