Understanding the Administrative Monetary Penalty System (AMPS)
Last Updated: Sept. 25, 2025
If you import or export goods in Canada, you must comply with Canada’s customs and trade requirements. Failing to meet those requirements can result in an Administrative Monetary Penalty (AMP) from the Canada Border Services Agency (CBSA).
The CBSA uses the Administrative Monetary Penalty System (AMPS) to issue monetary penalties to commercial clients that fail to comply with designated provisions of Canada’s customs and trade legislation. The system covers importers, exporters, customs brokers, carriers, freight forwarders, warehouse operators, and other trade chain partners.
What is the Administrative Monetary Penalty System (AMPS)?
The Administrative Monetary Penalty System allows the CBSA to issue monetary penalties when a commercial client fails to comply with designated provisions of the Customs Act, Customs Tariff, Special Import Measures Act (SIMA), and related regulations.
The CBSA designed AMPS to deter non-compliance and encourage voluntary compliance with customs and trade requirements. Only provisions designated under Canadian law fall under the AMPS program. The CBSA’s Master Penalty Document lists the applicable contraventions, penalty amounts, penalty basis, and guidelines for applying each penalty.
Who can receive an AMPS penalty?
AMPS applies to a range of commercial trade participants, including:
- Importers
- Exporters
- Customs brokers
- Carriers
- Freight forwarders
- Warehouse operators
- Duty-free shop operators
- Representatives of these businesses
The CBSA can assess a penalty when it identifies non-compliance during an import or export transaction, examination, audit, verification, or other compliance activity.
What can result in an AMPS Penalty?
The CBSA’s current Master Penalty Document contains the full list of AMPS contraventions.
Examples of non-compliance that can result in an AMPS penalty include:
- Failing to provide required information to the CBSA
- Failing to report goods
- Failing to pay duties
- Delivering goods before CBSA release
- Failing to self-correct an incorrect declaration
- Failing to maintain required records
- Failing to meet prescribed reporting requirements
The applicable penalty depends on the specific contravention and its penalty basis.
AMPS Penalty Amounts
AMPS does not use one standard penalty amount for every violation. The amount depends on the specific contravention and can vary based on whether it represents a first, second, or subsequent occurrence.
For example, CBSA’s C378 contravention applies when the responsible party fails to submit prescribed pre-load or pre-arrival information. The penalty is $2,000 for a first occurrence, $4,000 for a second, and $8,000 for a third and subsequent occurrence.
The penalty basis also matters. Some contraventions apply per instance, while others may apply per transaction, issue, occurrence, or another specified basis.
How does CBSA issue AMPS penalties?
The CBSA issues an AMPS penalty through a Notice of Penalty Assessment (NPA). The notice identifies the applicable enforcement action and provides information about the penalty.
A single NPA can contain multiple contraventions. Importers should review the penalty code, circumstances of the violation, amount assessed, and applicable review options as soon as they receive the notice.
The CBSA provides an Online Appeal Form for clients who want to request a review of an eligible enforcement action.
Can I appeal an AMPS penalty?
Yes. Commercial clients can request a review of an AMPS penalty through the CBSA’s recourse process.
A request for a formal review generally must be submitted within 90 calendar days from the date the NPA was served. The CBSA provides information about the review process and encourages clients to use its online appeal form.
When requesting a review, provide the relevant enforcement action information and supporting documentation that explains why the penalty should be reviewed.
What happens after I appeal an AMPS penalty?
The CBSA’s Recourse Directorate reviews eligible requests and the information supporting the appeal. The CBSA’s recourse program covers AMPS appeals and other trade-related enforcement decisions.
If you disagree with an enforcement decision after the applicable review process, additional legal recourse may be available depending on the circumstances.
AMPS and CARM
The CBSA Assessment and Revenue Management (CARM) system has changed how commercial importers manage customs accounting and related activities. Importers should maintain accurate information and processes within the CARM environment.
CARM does not replace AMPS. The CBSA continues to use AMPS to address designated customs and trade contraventions.
Importers can also learn more about CARM requirements through the GHY CARM Guide, which covers CARM Client Portal registration, delegation of authority, financial security, payments, Commercial Accounting Declarations (CADs), and CAD corrections and adjustments.
What should I do if I receive an AMPS penalty?
If the CBSA issues an AMPS penalty, review the NPA promptly and identify:
- The penalty code and alleged contravention
- The transaction or activity involved
- The penalty amount and penalty basis
- The date the NPA was served
- The records supporting your customs declaration
- Whether you should request a review
Keep the 90-day review deadline in mind when considering an appeal.
How GHY Can Help
AMPS penalties can stem from issues involving customs declarations, reporting, records, tariff classification, valuation, origin, and other trade compliance requirements. GHY International can help importers review their customs processes, identify compliance gaps, and assess their options when they receive an AMPS penalty.
If you have received an AMPS penalty or want to strengthen your customs compliance processes, contact GHY International to speak with a trade specialist.
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