Administrative Monetary Penalty System


Person altered, manipulated or combined goods while in a bonded warehouse in a manner not prescribed.


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


Non-compliance is discovered as a result of review of bonded warehouse operation or as a result of duty drawback or duty deferral verification.

Applied against the customs bonded warehouse operator or licensee.

Goods shall not be manipulated, altered or combined with other goods while in a bonded warehouse except for the purpose of or in the course of:

  • Disassembling or reassembling goods that have been assembled or disassembled for packing, handling or transportation;
  • Displaying;
  • Inspecting;
  • Marking, labelling, tagging or ticketing;
  • Removing from the warehouse, for the sole purpose of soliciting orders for goods or services, a small quantity of material, or a portion, a piece or an individual object, that represents the goods;
  • Storing;
  • Testing;
  • Packing, unpacking, packaging or repackaging; or
  • Any of the following that do not materially alter the characteristics of the goods:
    • Cleaning,
    • Complying with any applicable law of Canada or of a province,
    • Diluting,
    • Normal maintenance and servicing,
    • Preserving,
    • Separating defective goods from prime quality goods,
    • Sorting or grading, and
    • Trimming, filing, slitting or cutting.

All infractions discovered during the first visit, will be counted for one penalty and first level penalty will be assessed.

For failure to prevent the manipulation, combination or altering of goods in a sufferance warehouse, see C059.

Apply a penalty per visit.



Customs Bonded Warehouses Regulations, section 20


D7-4-4, Customs Bonded Warehouses


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