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The Canada Border Services Agency AMPS (Administrative Monetary Penalty System) legislation enables the CBSA to levy monetary penalties for non-compliance of specified regulations ranging from $100.00 up to $25,000.00 per infraction. This legislation is designed to promote compliance from all sectors of the importing community within the various CBSA regulations.

One of the major areas of concern under this legislation is the NAFTA Certificate of Origin (NAFTA). Section 35.1 of the Customs Act states that an Importer or Owner of goods must have a properly completed certificate of origin in their possession when claiming preferential tariff treatment for their goods. This means that in order to claim goods duty free under the NAFTA Agreement, you must have a properly completed NAFTA certificate on file, from your vendor, at the time the goods are accounted for with the CBSA.

Should the CBSA conduct an audit of your company and find that goods have been declared at a lower duty rate using a Preferential Tariff Treatment and a properly completed certificate of origin is not on file, the penalties for non-compliance of this regulation are as follows:

• 1^st Infraction – $1,000.00
• 2^nd. Infraction – $5,000.00
• 3^rd. Infraction — $10,000.00
• 4^th. and Subsequent Infractions $25,000.00

For anyone importing goods from the USA or Mexico the importance of this cannot be stressed strongly enough. Proof of Origin will be a major part of any Customs audit and obviously the cost of non-compliance is extremely high.

As an Importer of Record with the CBSA, it is your responsibility to ensure that all your US and Mexican suppliers provide you with an original, properly completed and signed NAFTA Certificate of Origin for all goods that you purchase from them.

If you do not have a NAFTA Certificate on file and one cannot be obtained within five (5) days from the date of release of the goods, the applicable duty must be paid on those goods. If a situation arises whereby you have to pay duty because you do not have a NAFTA Certificate available at the time of release, you can pursue a duty refund by providing a properly completed NAFTA Certificate within one year of the date of release of the shipment in question. Our Compliance team would be happy to work with you and your supplier to obtain the necessary certificate(s) for refund claims as required.

Should you have any questions regarding AMPS and your NAFTA or other Certificates of Origin please don”t hesitate to contact our office and a member of our Compliance team will be happy to assist you. You can also visit our website at www.pcb.ca for upcoming Trade Compliance Seminars on this and other important international subjects.

Tags: administrative monetary penalty system, AMPS, CBSA penalties, NAFTA Certificate of Origin, North American Free Trade Agreement