Statement of Facts
- CBSA has established a system called the Administrative Monetary Penalty System (AMPS).
- It applies when there is failure to comply with the Customs Act, Customs Tariff, and related regulations.
- Penalties are issued in the commercial import/export stream against Trade Chain Partners (TCPs).
- The system is supported by the Master Penalty Document (MPD), which lists contraventions.
Core factual line:
“AMPS is a sanctions regime… for failure to comply with CBSA legislation.”
Administrative Policy
Objective
- Deterrence of non-compliance
- Encouragement of voluntary compliance
- Creation of a level playing field for businesses
Key policy line:
“AMPS is designed to improve compliance rather than being punitive.”
Operational Policy
- Graduated penalties (1st, 2nd, 3rd offence → increasing severity)
- Use of penalties instead of harsh enforcement (seizure/forfeiture)
- Still allows:
- Seizure
- Forfeiture
- Criminal prosecution (in serious cases)
Meaning:
AMPS is a corrective and regulatory tool, not purely punitive.
Evidence (Legal Proof Framework)
In AMPS, evidence is document-based and compliance-driven.
Types of Evidence CBSA Relies On
- Commercial invoices
- Import/export declarations
- Books and records
- Electronic filings (EDI/CARM)
- Audit findings
- Statements made to officers
Legal trigger:
Failure to maintain or provide true, accurate, and complete records constitutes a contravention.
Role of MPD
- Acts as an evidence matrix
- Each contravention is linked to:
- Legal provision
- Penalty amount
- Required factual elements
Pith (Essence of Law)
Pith refers to the core purpose of the law.
AMPS exists to:
- Enforce compliance with customs law
- Replace harsh enforcement with monetary discipline
- Create accountability within the trade chain
In simple terms:
“Follow customs rules, or monetary consequences will follow.”
Substance (Operational Reality)
Substance reflects practical operation.
What happens in reality
- Importer files incorrect declaration
- Broker makes an error
- Exporter fails reporting
- Carrier violates reporting timelines
Detection by CBSA
- Audit
- Data analytics
- Documentation review
Result
- Notice of Penalty Assessment (NPA) is issued
In simple terms:
Every compliance failure becomes measurable and punishable.
Necessary Lines (Mandatory Legal Elements)
For a valid penalty, the following must exist:
- A designated legal obligation
- A contravention (failure to comply)
- Inclusion under Designated Provisions Regulations
- Correct MPD contravention code applied
- Proper issuance of Notice of Penalty Assessment (NPA)
Without these elements, the penalty is invalid.
Proper Lines (Procedural / Fairness Elements)
These ensure natural justice:
- Opportunity to request review or redress
- Right to correct penalty (error or amount)
- Penalty must be proportionate
- Consideration of:
- History of contravention
- Frequency
- Impact
- CBSA discretion in applying:
- Penalty
- Seizure
- Prosecution
Key legal principle:
Penalty is not automatic punishment; it is a structured administrative decision.
Final Legal Understanding (Core Conclusion)
AMPS is:
- Not criminal law
- Not purely punitive
- A compliance enforcement system
CBSA Philosophy
“We trust you first, but verify later.”
Implications
- Compliance leads to protection
- Non-compliance leads to monetary liability and escalation
Escalation Framework
- Small mistakes → penalties
- Repeated mistakes → higher penalties
- Serious violations → seizure and prosecution
AMPS is a data-driven and audit-backed system.
Non-compliance does not escape detection in the long run.
Final Line
AMPS is a monetary enforcement system designed to ensure compliance with the Customs Act through structured penalties based on defined contraventions.