Canadian Border Security (CBSA) Practice Exam

What does the Administrative Monetary Penalty System (AMPS) primarily aim to achieve?

1. Enhance trading relationships

2. Secure compliance with customs legislation

3. Increase import taxes

4. Facilitate international negotiations

The correct answer is: Secure compliance with customs legislation

The Administrative Monetary Penalty System (AMPS) is primarily designed to secure compliance with customs legislation. It is an enforcement tool that imposes monetary penalties for non-compliance with customs laws and regulations. By imposing these penalties, AMPS encourages importers and exporters to adhere to established rules, thereby promoting fair trade and compliance across the board. The system operates on a structured penalty approach, where the severity of the penalty correlates with the nature and extent of the infraction. This structure helps ensure that organizations take customs laws seriously, thereby promoting a more orderly and lawful trade environment. While enhancing trading relationships and facilitating international negotiations are important goals within international trade, they are not the primary focus of AMPS. Instead, the system directly targets compliance to maintain the integrity of the customs process. Similarly, increasing import taxes is not the function of AMPS, as it does not aim to raise revenue but rather to enforce compliance with existing regulations. The primary emphasis of AMPS is on ensuring that businesses follow the law rather than altering economic policies or tax structures.