Fact Sheet

2009

Administrative Monetary Penalty System

The Administrative Monetary Penalty System (AMPS) came into effect in 2002. The goal of AMPS is to promote voluntary compliance with customs legislation by imposing penalties on companies that do not comply. The penalties are proportionate to the type, severity and frequency of the infraction.

This sanctions regime encourages compliance with the requirements of the Customs Act, the Customs Tariff, related regulations, licensing agreements and other undertakings.

AMPS creates a level playing field for all Canadian businesses by ensuring there is a cost for non-compliance.

How does AMPS work?

AMPS is designed to be corrective, not punitive. The penalties range from small amounts to a maximum of $25,000 per infraction. Compliance records are always considered when calculating the penalty and penalties increase with subsequent occurrences of the same infraction.

For example, the penalties for failing to account for all imported goods valued at $1,600 or greater at the time of the release are the following:

• 1st contravention: $2,000 or 20% of the value for duty, whichever amount is greater;
• 2nd contravention: $4,000 or 40% of the value for duty, whichever amount is greater; and
• 3rd and subsequent contraventions: $6,000 or 60% of the value for duty, whichever amount is greater.

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