Administrative Monetary Penalty System


Broker failed to account to a client for funds owed or refunded.


Occurrence Penalty
1st $150
2nd $225
3rd and subsequent $450
Penalty basis
Per instance
Retention period
12 months


Non-compliance occurs when a broker fails to promptly account for funds received for the client from the Receiver General for Canada, or received from the client in excess of the duties and / or other charges payable in respect of the client's business with the Canada Border Services Agency.

The broker must account to the client for all funds received from the CBSA. A refund cheque (from a B2) should always be made out in the name of the importer and should not be cashed by the broker, unless specifically authorized by a "power of attorney".

A contravention will become apparent following either an audit or a complaint from a client and subsequent investigation by regional officials.

Each failure to account to a client shall be deemed to be a separate contravention.

This contravention will normally be applied at the local or regional level.

The Brokers Licensing unit, in Headquarters, should be advised of any penalties issued.



Customs Brokers Licensing Regulations, paragraph 14(d)(i)(ii)


D1-8-1, Licensing of Customs Brokers

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