Canadian Border Security (CBSA) Practice Exam

Under what circumstance might an AMPS be applied to a business?

1. When a business increases its trade volume

2. When a business seeks certification

3. Non-compliance with CBSA regulations

4. When a business hires foreign workers

The correct answer is: Non-compliance with CBSA regulations

The application of an Administrative Monetary Penalty System (AMPS) to a business is primarily invoked when there is non-compliance with CBSA regulations. This system serves as a compliance tool designed to encourage businesses to adhere to the legal and regulatory requirements set forth by the Canadian border security authorities. When businesses fail to comply with these regulations, whether through actions like mislabeling goods, incorrect documentation, or failure to declare certain items, AMPS allows the CBSA to impose penalties. This aims to promote accountability and ensure that all businesses engage in lawful practices when conducting cross-border trade. The penalties can serve as a deterrent to prevent future infractions, thereby enhancing overall compliance within the industry. The other circumstances listed, such as increasing trade volume, seeking certification, or hiring foreign workers, do not inherently trigger AMPS imposition. These situations may involve different regulatory frameworks or considerations, but the core reason for AMPS application rests on adherence to existing regulations, making non-compliance the key trigger for penalties under this system.