Avoiding AMPS penalties when importing into Canada

AMPS penalties apply when importers fail to meet CBSA requirements, whether through errors in documentation, late duty payments, or missed corrections.

For Canadian importers, compliance can be challenging.  

Every declaration, duty payment, and shipment detail is subject to review by the Canada Border Services Agency (CBSA).

And, when errors occur, the consequences are not just warnings or delays. They can result in monetary fines.

These fines, known as AMPS penalties, are designed to hold businesses accountable for meeting their customs obligations.

Depending on the type, severity, and frequency of non-compliance, AMPS penalty amounts are graduated and can reach $25,000 for a single violation.

Avoiding these penalties not only saves money for your business but also helps maintain your credibility with CBSA.

In this article, we explain what AMPS penalties are, highlight their triggers, and offer five practical tips to help protect your business. 

What are AMPS penalties?

The Administrative Monetary Penalty System (AMPS) is the framework that CBSA uses to enforce compliance with customs and trade laws.

Instead of relying only on seizures or criminal prosecution, CBSA applies monetary fines when businesses fail to meet their legal obligations.

Each penalty remains on an importer’s compliance record for six years plus the current year.

How severe are these penalties?

When CBSA identifies non-compliance, it issues a Notice of Penalty Assessment (NPA), which is a formal notice notifying the business of the violation and the amount owed.

The amounts are graduated. This means that first-time violations are assessed at lower levels, while repeated or more serious contraventions result in higher penalties.

For a single violation, the maximum penalty is $25,000.

To ensure consistency, CBSA publishes a detailed Master Penalty Document that lists each violation, the corresponding penalty code, and the amount assessed depending on the severity and frequency of non-compliance.

In some cases, penalties may also be combined with other enforcement actions, such as the seizure or forfeiture of goods, particularly when prohibited or controlled items are involved.

Common mistakes that trigger penalties

The following types of non-compliance most often result in AMPS penalties:

Failure to pay duties

Importers are responsible for paying all assessed duties in full and on time. Late or incomplete payments may trigger penalties.

Failure to provide required information to CBSA

Submitting missing, incomplete, or inaccurate information prevents proper customs processing and frequently triggers penalties.

Unauthorized removal of goods from warehouse

Goods stored in a warehouse must remain under CBSA control until officially released. Removing them without authorization may result in penalties.

Direct delivery of goods prior to release

Importers cannot deliver goods into the Canadian market before CBSA has formally released them.

Failure to report goods to CBSA

All goods entering Canada must be reported to CBSA at the first point of arrival. Skipping or delaying this step can lead to penalties.

Failure to self-correct incorrect declarations

When an importer has “reason to believe” that information submitted to CBSA was wrong, a correction must be filed within 90 days. Failing to do so may result in penalties.

5 practical steps to avoid AMPS penalties

According to CBSA, importers are ultimately responsible for compliance, even when they work with a customs broker.

This means that, as an importer, you are responsible for ensuring the accuracy and completeness of your import and export transactions.

To meet these obligations, reduce risks, and avoid AMPS penalties, make sure that you:

1. Obtain release of imported goods properly

Make sure that your shipment is cleared and officially released by CBSA before it enters the Canadian market. Also, avoid unauthorized delivery or removal from warehouses prior to release.

2. Pay all duties in full and on time

Keep track of duty obligations and make sure that payments are completed as required, as missing or delaying payment can result in penalties.

3. Provide accurate and complete documentation

Double-check all information and documentation submitted to CBSA. This includes invoices, HS codes, certificates of origin, and other required data.

4. Maintain your records

Keep all import-related records for at least six years, and be ready to present them if CBSA requests a review.

5. Respond to CBSA concerns

In the event that CBSA raises questions or concerns after duties are paid, address them promptly. Responding quickly helps resolve issues before they escalate.

How Cole International can help

Many businesses struggle to manage their obligations and avoid AMPS penalties, which is why working with an experienced customs broker can make all the difference. 

At Cole International, we provide trade consulting and customs brokerage services to help importers reduce the risk of AMPS penalties and ensure compliance with CBSA requirements.

Our team works with importers every day to:

• Verify the accuracy and completeness of customs documentation before submission
• Support the filing of corrections within the 90-day self-correction period
• Provide guidance and compliance strategies to help avoid violations

We don’t believe in guesswork. We get it right the first time.

If your business imports goods into Canada, reach out to one of our trade professionals to prevent potential AMPS penalties and ensure compliance.