Printer-Friendly Frequently Asked Questions: Canada Compliance

General Questions

What is Administrative Monetary Penalty System (AMPS)?

AMPS is a penalty system established by the Canada Customs and Revenue Agency (CCRA). The goal of AMPS is to promote voluntary compliance with customs legislation and correct non-compliance through the use of monetary penalties.

What regulatory systems does AMPS cover?

AMPS targets non-compliance with Canada‘s Customs Act, the Customs Tariff and the Special Import Measures Act and their regulations.

How much are the penalties?

The penalties range from $100.00 to a maximum of Cd$25,000 per infraction. The amount is based on type, frequency and severity. Importers with more than one infraction will receive penalties of increasing amounts.

What do we need to do to avoid penalties associated with AMPS?

Take the following survey. No answers are indications that you could be at risk of penalty under AMPS:

• Do you have a compliance plan with a mechanism for monitoring compliance on an on-going basis?
• Have you recently reviewed your Customs-related systems, processes and documentation?
• Have you consulted with your service providers, e.g., broker or Customs consultant, to verify that the tariff classification, NAFTA certification, and origin and valuation of the goods you import/export are in accordance with the requirements of the Customs Act?
• Can you produce required Customs entry/export documentation and the supporting information, including any required Certificates of Origin?
• Have you ensured that your imported/exported goods comply with the requirements of other agencies? Have you obtained all necessary licenses or permits?
• Are your goods subject to dumping or countervailing duty? If so, do you have procedures to ensure compliance with Customs reporting requirements upon entry?
• Is your carrier aware of Customs reporting and release procedures and documentation requirements for your trans-border shipments?
• Are there links between your Customs process and your accounting systems and procedures?
• Are there links between your Customs entry or exportation documentation and your purchasing, receiving, vendors' invoicing, and payables processes?
• Have these processes been documented to identify any shortcomings?
• Have you determined your current level of compliance as well as that of your service providers?
• Do you have a Customs policy and procedure manual?

How can FedEx Trade Networks help my company comply with CCRA's regulations and avoid AMPS penalties?

FedEx Trade Networks can help by offering these services:

• Diagnostic evaluations:It all starts with a diagnostic evaluation of your current compliance guidelines. We can identify weaknesses and incomplete procedures related to compliance and provide recommendations for improvement.
• Helping you implement:FedEx Trade Networks can develop a program that puts your company on the right track toward solid compliance. We can also implement an on-site training program for your staff.