When you receive an NPA, review the notice carefully, confirm the deadline, gather the supporting records, and seek professional advice before deciding how to respond.
If you receive a Notice of Penalty Assessment (NPA), it may be the first sign that the Canada Border Services Agency (CBSA) believes a customs obligation has not been met.
You have the right to understand why the penalty was issued, review the facts, and request a ministerial review. However, ignoring the notice, delaying your response, or proceeding without the right supporting information could affect your ability to challenge the assessment.
In this article, we explain what an NPA is, what to do after receiving one, and how the review process works.
A Notice of Penalty Assessment (Form E650) is the document the CBSA uses to notify a person that it has assessed a monetary penalty under the Administrative Monetary Penalty System (AMPS).
AMPS applies to designated obligations under the Customs Act, Customs Tariff, Special Import Measures Act (SIMA), and related regulations.
They commonly relate to tariff classification, valuation, origin, accounting, corrections, or recordkeeping.
The notice identifies the legislative authority, the reason for the penalty, the penalty amount, and the enforcement action number.
Receiving an NPA does not mean you've reached the end of the process. Instead, it marks the beginning of a formal review period with specific deadlines.
Read the notice carefully. Confirm the enforcement action number, the reason for the penalty, the amount assessed, and the date the notice was issued or served.
Then gather documents relating to the transaction, including commercial invoices, accounting information, classification or valuation records, origin documentation, and anything that may help explain the circumstances.
If you believe the penalty was issued incorrectly, you have 90 calendar days (not business days) from the enforcement action or service date to request a review. If you miss this window, you may lose your right to challenge the penalty.
It's best to contact your customs broker to help you review the facts, identify the relevant customs requirements, and determine whether you have grounds to challenge the assessment.
Next, request a ministerial review online through the CBSA's E-Appeals service, or by submitting a written request to the Recourse Directorate.
Your request must include the enforcement action number, together with the supporting documents and explanation you want the CBSA to consider.
Because many AMPS penalties involve technical customs requirements, working with an experienced customs broker can help ensure your review request addresses the relevant issues and includes the necessary documentation.
Once your request is received, the CBSA will acknowledge it, confirm that a review file has been opened, and assign the file to a Recourse Directorate official.
After reviewing your submission and the documentation from the office that issued the penalty, the official will send you a letter summarizing the reasons for the enforcement action, responding to your submission, and providing a copy of the officer’s report.
You will then have 30 calendar days to submit any additional documentation you want considered.
The final decision is issued by registered letter. The enforcement action may be maintained, amended, or cancelled. Once the decision is made, neither the Minister of Public Safety nor CBSA officials have the authority to act further.
If the enforcement action is maintained or amended, the decision letter will explain your options and deadlines for further appeal or review to the Federal Court.
Cole International provides trade consulting and customs brokerage services to help Canadian importers understand AMPS penalties and ensure customs compliance.
If you receive an NPA, reach out to one of our trade professionals to assess your options and ensure any review request is filed accurately and within the required timeframes.