Canada Customs and Revenue Agency's Administrative Monetary Penalty System

December 2002

Notice from Natural Resources Canada

Natural Resources Canada (NRCan) would like to inform dealers of energy-using products of the implementation of the new Canada Customs and Revenue Agency (CCRA) Administrative Monetary Penalty System (AMPS), effective October 7, 2002.

In December 2001, AMPS was implemented for commercial operations. In order to provide clients with more time to fully understand their obligations, a grace period was extended to October 2002, during which time warnings were issued.

This new penalty system is designed to address non-compliance with customs legislative, regulatory and program requirements. Through a memorandum of understanding, CCRA administers the Energy Efficiency Regulations Program on NRCan's behalf at all border crossings. As dealers of energy-using products covered by the Energy Efficiency Regulations (the Regulations), AMPS affects you.

AMPS penalties were developed to penalize dealers if they fail to provide necessary documentation required at the time of release as stipulated in Section 7.1 of the Customs Act. More specifically, for the Energy Efficiency Regulations Program, if the required information and shipping documents are incomplete or not presented at the time of release, the penalty will start at $100 for the first occurrence, $500 for the second occurrence, and escalating to $1000 for third and subsequent occurrences.

It is important to note that AMPS was not developed to replace the penalties that are currently provided for in the Energy Efficiency Act, 1992.

Reminder of Importing Requirements

The following information must be indicated on customs documentation (e.g., customs invoices) or as data elements when using electronic transmissions to CCRA:

1. Name of the product (e.g., fluorescent lamp, dehumidifier);
2. Model number of the product (for motors, the "unique motor identifier" or UMI)
   Note: The model number must be the same as the one appearing on the energy efficiency report (Please refer to the Web sites below for details on energy efficiency reports.);
3. Brand of the products (if any);
4. Address of the dealer; and
5. Purpose of the importation.

Please ensure that personnel or suppliers who prepare the import documents are aware of these requirements.

To facilitate imports of regulated products, dealers must provide an extra copy of the customs document containing the required information (e.g., invoice) to the CCRA at the time of the importation or provide the required information electronically as data elements. NRCan will continue to monitor compliance with import requirements.

Useful Resources

• For a listing of the energy-using products that are currently regulated under the Energy Efficiency Regulations and for detailed information on dealer requirements, visit NRCan's Web site at www.oee.nrcan.gc.ca/regulations;
• Canada Customs and Revenue Agency (CCRA): Dmemo D19-6-3; and
• For additional information on AMPS, visit Canada Customs and Revenue Agency's Web site at www.ccra-adrc.gc.ca.

Contact

Kelly-Ann Chisholm
Chief, Compliance Operations
Office of Energy Efficiency, Energy Sector
1 Observatory Crescent, Bldg #3, 2nd Floor
Ottawa, Ontario K1A 0E4
nrcan.equipment.rncan@canada.ca