Administrative Monetary Penalty System
C036

Contravention

Person transported or caused to be transported within Canada goods that have been imported but which have not been released, without having the appropriate bond or security.

Penalty

Occurrence Penalty
1st $500 Footnote *
2nd $750
3rd and subsequent $1,500
Footnote *

A 30-day delay in the escalation of penalty levels from the first to the second will apply to this contravention. Should a second penalty with the same contravention be issued against the same client, the system will not escalate the penalty level to level two unless 30 days have transpired from when the first Notice of Penalty Assessment (NPA) was issued or the infraction occurred. The non-escalation rule applies from the first level to the second level only; it does not apply from the second to the third level.

Return to footnote * referrer
Penalty basis
Per shipment
Retention period
12 months

Guidelines

Non-compliance occurs when goods have been moved from point to point within Canada, without the appropriate bond or security, prior to having been released.

In an audit situation, each shipment found in contravention within a first audit will be assessed a first level penalty.

For example, if five shipments were transported within Canada, without the appropriate bond or security, a penalty of $2,500 (5 × $500) would be assessed. The same applies for the second and third level penalties.

For situations where goods are moved or removed from the customs office or sufferance warehouse, see C033.

For situations where goods are removed from a bonded warehouse or duty free shop prior to release, see C066.

References

Legislation

Customs Act, subsection 20(1)

D-Memo

D3-1-1, Policy Respecting the Importation and Transportation of Goods

Other

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