The following members' questions concerning
contraventions
related to the marking and labelling of goods have been
answered by the CCRA. This information is also available to
CSCB members only in the AMPS Consultative Committee section
of our web site. To access this area, log on as a member on
our home page, then click on "Where We Stand". On the
welcome page, click on "AMPS Consultative Commitee", then
"questions and answers".
Question
Currently, importers are given the opportunity to have goods
marked in Canada when it is found that they are improperly
marked. However, contraventions 141 and 142 imply that this
will no longer be the case. Is this correct?
As well, certain information, such as dealer identification
number (CA number), is required on labels for textile goods.
Will goods that are not properly labeled be subject to
penalties under AMPS?
Answer
If a shipment arrives unmarked or improperly marked and
there is no uncertainty as to what country should be marked
on the goods, the customs officer must reject the import
transaction and ensure that the shipment meets marking
requirements prior to release. The customs officer should
issue the first level penalty, which is a warning. The
ôNotice of Penalty Assessmentö must be adjusted to state that
the penalty is a result of the shipment not being marked
and/or being marked improperly.
When there is confusion or disagreement as to what country
should be marked on the goods, the customs officer must
contact the RME for a ruling. The RMEÆs ruling will be a
determination under section 57.01 of the Customs Act and
therefore, the RME must issue the first level penalty (Notice
of Penalty Assessment). The officer must ensure that the
shipment is properly marked before the goods are released and
provide the RME any documentation or information required for
the RME to issue a determination and the first level
penalty.
The officer may apply second level and subsequent penalties
for identical and similar goods.
Identical Goods: Goods that are the same in all respects,
including physical characteristics, origin, quality and
reputation, except for minor differences in appearance.
Similar Goods: Goods that closely resemble each other in
respect of their component materials and characteristics, are
capable of performing the same functions, are commercially
interchangeable, and were produced in the same country.
In cases where fraud is suspected, such as situations where
goods are marked in a deceptive way, refer to the prosecution
policy. A penalty will be issued regardless of whether or
not there will be a criminal prosecution.
Labelling requirements fall under the purview of Industry
Canada and not the CCRA and as such there are no AMPS
penalties for any labelling problems. If the Customs
Inspector notices a problem with labelling and no other
problems with the shipment he will release the goods. At the
same time he may, at his discretion, advise Industry Canada
of the problem.
