When Canada Border Services Agency (“CBSA”) Officers have reason to believe that the proper procedures have not been followed at the border on the import of goods (i.e., an item has been concealed for reporting, or an incorrect value or description has been provided), the Officer has the power to either seize the good and sometimes the conveyance (i.e., vehicle) used to transport it, or issue an ascertained forfeiture after the fact.

Both actions may come as a surprise to the importer — especially given that even minor contraventions of the law can lead to these significant seizures and actions, thereby requiring detailed and confusing appeal processes to remedy.

Background

Section 110 of the Customs Act provides CBSA Officers with the authority to seize goods when they believe on reasonable grounds that the law has been contravened.  This section further authorizes Officers to seize passenger-carrying conveyances and anything else that may provide evidence of a contravention of the Customs Act.  Once goods are seized, CBSA issues a K19 Seizure Receipt and takes possession of the goods (as forfeit) — unless the goods are later released through the successful appeal of the seizure or satisfaction of the “terms of release” (which often involves the payment of a penalty as a significant percentage of the good’s value for duty).

(Forfeit means that the goods and/or conveyances are technically then owned by the government).

Vehicle Seizures

The most common way conveyances are seized is when they are imported without being properly reported and declared.  For example, where a Canadian purchases a vehicle in the United States and fails to report/declare the vehicle for import on return to Canada.  This can also apply to certain rental car situations where a vehicle is rented in the United States and brought back into Canada for use.  Penalties for failing to properly report a vehicle for import can be significant, upwards of 50% of the vehicle’s value depending on the circumstances.  The person can also expect greater scrutiny at the border for several years afterwards.

CBSA will also seize vehicles when found to be carrying prohibited items (namely small quantities of drugs).  In these situations, CBSA will seize the items AS WELL AS the conveyance that carried them. 

Request for Review and Appeal to the Federal Court

Once a conveyance is subject to a seizure or ascertained forfeiture, the clock begins ticking for the importer to appeal that action to CBSA, often with a very short time period.  If an importer does not get a good answer from CBSA, then often times two more separate appeal routes are required to further appeal the matter in the courts.

Takeaways

It is always best to ensure that goods (and conveyances) are properly reported, declared, and valued at the border.  When things do go wrong, legal advice is usually required to try and deal with the fallout!

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