Administrative Monetary Penalty System


Person (carrier or freight forwarder) failed to use their authorized carrier code or failed to present a contract or letter of exclusivity when using another carrier or freight forwarder’s carrier code.


Occurrence Penalty
1st $1,000
2nd $2,000
3rd and subsequent $4,000
Penalty basis
Per conveyance
Retention period
12 months


Penalty is applicable to all reporting requirements where a carrier code must be provided.

Non-compliance occurs when a conveyance operating carrier or freight forwarder fails to use their unique CBSA carrier code when providing their conveyance data, or uses the carrier code belonging to another carrier or freight forwarder without a valid contract or letter of exclusivity.

The carrier or freight forwarder should be afforded an opportunity to prove exclusivity. Refer to D3-4-2 for more information on proving exclusivity. The carrier or freight forwarder will not be allowed to perform an inland movement using the unauthorized carrier code and is required to use their own carrier code if not operating under an exclusive contract. A carrier or freight forwarder will be liable for a penalty if they move inland on their own carrier code, or leaves Canada, prior to proving exclusivity.



Customs Act, section 7.1


D3-3-1, Freight Forwarder Pre-arrival and Reporting Requirements

D3-4-2, Highway Pre-arrival and Reporting Requirements

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