AMPS Questions Answered

March 13, 2002

13 March 2002

AMPS Questions Answered

The CSCB has received responses to two questions posed regarding AMPS. These questions, and the CCRA's responses, follow. This information is also available to members on the members-only advocacy area of our web site; click on "Where We Stand" from the CSCB home page (http://www.cscb.ca), then on the "AMPS Consultative Committee" link and you will be taken to the correct page.

Members with questions or comments are asked to contact the CSCB national office, at [email protected].

Question

Contravention C003 indicates a penalty of $100.00 will be assessed if field 12 is completed incorrectly on the B3. This field is labelled "country of origin"; however, D17-1-10 indicates that if the country of origin is the U.S., then this field must indicate the 3-digit state code. If the state code is incorrect, ie., Florida is shown, but California is correct, is this subject to a penalty? (Keep in mind that the country of origin is still correct).

Answer

The prescription instrument which sets out what information must be in these B3 fields makes reference to D17-1-10 as containing the requirements. What this means is that the importer must provide information as specified in D17-1-10, therefore, with regard to the country of origin, the proper state code must be used. The D-Memo provides further clarification regard how this information must be provided if the goods originate in multiple states.

Question

A recent valuation review contained the following comment: "It was also established that (importer's name) was not complying with the terms of S.48(4) by making the required adjustments to the prices paid or payable which are specified in S. 48(5). More specifically, the following deductions to the price paid or payable were not made: Discounts and Allowances, Transportation Costs, Brokerage fees, Duties & taxes." Apparently the vendor had not deducted allowable deductions from his selling price. Is this practice subject to a penalty under AMPS? It is our understanding that these are allowable, not mandatory, deductions, and an error in calculating the value for duty based on including allowable deductions should not be assessed.

Answer

If I understand the question you are referring to a case when the importer is in a refund scenario. Subsection 32.2(5) of the Customs Act specifically excludes refund situations from the requirements in 32.2 to correct import documents. There is no AMP possible for failure to request a refund.


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