CSCB Voices Urgent Concerns: AMPS and Account...

March 7, 2003

7 March 2003

CSCB Voices Urgent Concerns: AMPS and Account Security

The CSCB has written to CCRA Assistant Commissioner Denis Lefebvre to highlight two areas of urgent concern -- AMPS and account security. In both these areas, members have encountered policies and attitudes which show that CCRA is seriously out of step with the needs and realities of the business community.

The letter speaks for itself, and we will be following up. If you have any questions or comments, please do not hesitate to let us know.

We have two areas of urgent concern to bring to your attention. In both of these areas, we have encountered policies and attitudes which show that CCRA is seriously out of step with the needs and realities of the business community. This is particularly frustrating in a time of uncertainty about border and security issues, as the private sector is cooperating with CCRA in an unprecedented way to make things work and to keep trade moving.

Our inventory of outstanding AMPS issues is still unacceptably large, and we are continuing to try and resolve most of these issues at the administrative level, frustrating as that process is. The latest AMPS update to the CTACC committee has very little substance and very few commitments. The draft D-Memorandum, which should have
been issued last October, has huge gaps. We have come to expect and accept those things, a sad but true statement. What causes us grave concern and what represent areas
of serious vulnerability for CCRA are the following situations:

1. CCRA policy on appeals.

Ken McCarthy, the Director responsible for AMPS, assured us that no decisions had been made on appeals under Contravention C274. We presented him with evidence that decisions had indeed been made, and he has met with the Director of Adjudications to discuss. What are the guidelines under which Adjudications officers are working, and who issued those guidelines?

We are expecting direct feedback from Mr. McCarthy, but, beyond that, we need clarification from the most senior levels of CCRA of what the policy is with respect to appeals. That policy must be consistent with your frequent statements that penalties are not punitive, and that the process is transparent and fair, or the credibility of this entire program is seriously jeopardized.

2. Retroactivity of AMPS

We have been unable to get an answer to the question of whether AMPS will be applied to transactions prior to October 7, 2002. We expect that it will not be and cannot understand why this has not been confirmed.

3. Policy with respect to Y50s

We first asked for clarification of the policy with respect to Y50’s more than a year ago . In spite of receiving written policy clarification from the OPI on this (that when a Y50 is issued and the Y50 requirement complied with, there will be no penalty issued), we continue to see examples of penalties being issued after Y50’s. If the policy stated by the OPI is correct, why is this happening? If the intention of AMPS is to promote compliance, it just shouldn’t be.

4. Clerical errors and threshold levels

You have asked for our thoughts with respect to the issue of clerical errors and threshold levels (or “volumetrics”). We have previously pointed out the example of penalties for late accounting, with low penalty levels which are not reflected in compliance history. We would also draw your attention to how you have handled the penalties for shipments valued at less than $1600. It is unfair to have minimum penalties of $1,000 applied to shipments valued at less than that amount, as has happened with several C-274 infractions.

5. The AMPS framework

When AMPS was developed, our primary objective was improving trade compliance. That was before September 11, 2001. Our focus now, collectively, is with risk management - keeping our borders safe, and keeping our borders open. With this in mind, it would be time well spent to take a serious second look at AMPS, and we would welcome the opportunity to participate in such a process.

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