AMPS and Contraventions 315 and C005

February 3, 2003

3 February 2003

AMPS and Contraventions 315 and C005

The following information is also available to members on the CSCB web site; after logging in as a member, click on the “Where We Stand” bullet, then “AMPS Consultative Committee”, and finally, “Questions and Answers”.

The CSCB has had a question answered from the CCRA AMPS working group concerning penalties and General Export Permits. The question and answer, in their entirety, follows. Any questions may be directed to the CSCB at cscb@cscb.ca.

QUESTION: Can you have a look at the backgrounder to contravention C315? The backgrounder to this contravention states that the "exporter failed to provide a permit including a General export permit (GEP), licence or certificate prior to export." However, in cases where goods require a GEP, the backgrounder is misleading since only the GEP number is quoted and an actual permit is not required.

As well, it has been brought to our attention that officers are applying C315 in cases where the GEP number has been omitted. In our opinion, the contravention that should be applied when the GEP is omitted is C005.

The difference in the penalty amount is also quite substantial - $1,000.00 for the first infraction under C315 and $100.00 for the first infraction under C005.

RESPONSE: This refers to your concern regarding GEPs in the C315 backgrounder where it states "exporter failed to provide a permit including a General export permit (GEP), licence or certificate prior to export." You were concerned with contravention C315 being assessed when a GEP number is not quoted in field 7 of the B13A. You believe that C005 is in fact more appropriate. What may cause confusion is that in cases where goods require a GEP only the GEP number needs to be quoted and no actual permit is required.

The fact is that Customs always needs a permit, however, in the case of GEPs we are willing to do without an actual copy when a valid GEP number is quoted in field 7 of the B13A. Thus, when the exporter fails to provide the GEP number it must provide a copy of the actual permit for Customs Inspectors to be able to do their work. This means that a permit is required under all circumstances and the backgrounder is accurate. Customs does not insist on a paper copy in the case of a quoted GEP number because Customs Inspectors are sufficiently familiar with GEPs to perform their work once the applicable number is known.

With regards to your second point, the need to fully consider the important information conveyed by a permit (including a GEP), certificate or licence makes it impossible to include the omission of any of these documents in the same category as the administrative errors and omissions covered by penalty C005. Considering the fact that the goods are no longer under Canadian control once released for export, documents of this nature and the critical information they contain must come to Customs Inspectors' attention before the goods leave Canada. The higher degree of emphasis that needs to be communicated is best achieved by financial penalties that ensure such documents are submitted in a timely fashion. This is why a separate backgrounder calling for penalties higher than those in C005 are called for to address a missing permit, certificate or licence.

Customs Inspectors must be in a position to consider all key elements of information, including those conveyed by the notation of a GEP number on a B13A, before the goods leave Canada. As such, we are convinced that C315 remains the appropriate penalty for a missing GEP number.


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