Customs Act (R.S.C., 1985, c. 1 (2nd Supp.))

Marginal note:Return of conveyance seized

118 An officer may, subject to this or any other Act of Parliament, return any conveyance that has been seized under this Act to the person from whom it was seized or to any person authorized by the person from whom it was seized on receipt of

• (a) an amount of money of a value equal to

  • (i) the value of the conveyance at the time of seizure, as determined by the Minister, or

  • (ii) such lesser amount as the Minister may direct; or

• (b) where the Minister so authorizes, security satisfactory to the Minister.

Marginal note:Return of animals or perishable goods seized

• 119 (1) An officer shall, subject to this or any other Act of Parliament, return any animals or perishable goods that have been seized under this Act and have not been sold under subsection (2) to the person from whom they were seized or to any person authorized by the person from whom they were seized at the request of such person and on receipt of

  • (a) an amount of money of a value equal to

    • (i) the aggregate of the value for duty of the animals or perishable goods and the amount of duties levied thereon, if any, calculated at the rates applicable thereto,

      • (A) at the time of seizure, if the animals or perishable goods have not been accounted for under subsection 32(1), (2) or (5) or if duties or additional duties have become due on the goods under paragraph 32.2(2)(b) in circumstances to which subsection 32.2(6) applies, or

      • (B) at the time the animals or perishable goods were accounted for under subsection 32(1), (2) or (5), in any other case, or

    • (ii) such lesser amount as the Minister may direct; or

  • (b) where the Minister so authorizes, security satisfactory to the Minister.

• Marginal note:Sale of seized goods

  (2) An officer may sell any animals or perishable goods that have been seized under this Act, in order to avoid the expense of keeping them or to avoid their deterioration, at any time after giving the person from whom they were seized or the owner thereof a reasonable opportunity to obtain the animals or perishable goods under subsection (1), and the proceeds of the sale shall be held as forfeit in lieu of the thing sold.

Marginal note:Dealing with goods seized

• 119.1 (1) Where any goods are seized under this Act, the Minister may authorize an officer to sell, destroy or otherwise deal with the goods.

• Marginal note:Excise stamps not to be sold

  (1.01) Despite subsection (1), the Minister shall not authorize an officer to sell excise stamps that have been seized under this Act.

• Marginal note:Restriction

  (1.1) Subject to the regulations, the sale under subsection (1) of

  • (a) spirits or specially denatured alcohol may only be to a spirits licensee;

  • (b) wine may only be to a wine licensee;

  • (c) raw leaf tobacco or a tobacco product may only be to a tobacco licensee;

  • (c.1) a vaping product may only be to a vaping product licensee; and

  • (d) a restricted formulation may only be to a licensed user.

• Marginal note:Proceeds of sale

  (2) The Minister shall hold the proceeds from the sale of any goods under subsection (1) as forfeit in lieu of the goods sold.

• Marginal note:Payment of compensation

  (3) Where a person would be entitled to the return of goods if they were available to be returned, but it is not possible to return them, the person shall be paid

  • (a) where the goods were sold, the proceeds from the sale; and

  • (b) in any other case, the value of the goods.

Marginal note:Value substituted for value for duty

120 For the purpose of calculating the amount of money referred to in paragraph 117(a) or 119(1)(a), where the value for duty of goods cannot be ascertained, the value of the goods at the time of seizure, as determined by the Minister, may be substituted for the value for duty thereof.

Marginal note:Goods no longer forfeit

121 Goods or conveyances in respect of which money or security is received under section 117, 118 or 119 shall cease to be forfeit from the time the money or security is received and the money or security shall be held as forfeit in lieu thereof.

Forfeitures

General

Marginal note:Forfeitures accrue automatically from time of contravention

122 Subject to the reviews and appeals established by this Act, any goods or conveyances that are seized as forfeit under this Act within the time period set out in section 113 are forfeit

• (a) from the time of the contravention of this Act or the regulations in respect of which the goods or conveyances were seized, or

• (b) in the case of a conveyance made use of in respect of goods in respect of which this Act or the regulations have been contravened, from the time of such use,

and no act or proceeding subsequent to the contravention or use is necessary to effect the forfeiture of such goods or conveyances.

Marginal note:Review of forfeiture

123 The forfeiture of goods or conveyances seized under this Act or any money or security held as forfeit in lieu of such goods or conveyances is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 127.1 and 129.

Ascertained Forfeiture

Marginal note:Ascertained forfeitures

• 124 (1) Where an officer believes on reasonable grounds that a person has contravened any of the provisions of this Act or the regulations in respect of any goods or conveyance, the officer may, if the goods or conveyance is not found or if the seizure thereof would be impractical, serve a written notice on that person demanding payment of

  • (a) an amount of money determined under subsection (2) or (3), as the case may be; or

  • (b) such lesser amount as the Minister may direct.

• Marginal note:Determination of amount of payment in respect of goods

  (2) For the purpose of paragraph (1)(a), an officer may demand payment in respect of goods of an amount of money of a value equal to the aggregate of the value for duty of the goods and the amount of duties levied thereon, if any, calculated at the rates applicable thereto

  • (a) at the time the notice is served, if the goods have not been accounted for under subsection 32(1), (2) or (5) or if duties or additional duties have become due on the goods under paragraph 32.2(2)(b) in circumstances to which subsection 32.2(6) applies; or

  • (b) at the time the goods were accounted for under subsection 32(1), (2) or (5), in any other case.

• Marginal note:Determination of amount of payment in respect of conveyances

  (3) For the purpose of paragraph (1)(a), an officer may demand payment in respect of a conveyance of an amount of money of a value equal to the value of the conveyance at the time the notice is served, as determined by the Minister.

• Marginal note:Value substituted for value for duty

  (4) For the purpose of calculating the amount of money referred to in subsection (2), where the value for duty of goods cannot be ascertained, the value of the goods at the time the notice is served under subsection (1), as determined by the Minister, may be substituted for the value for duty thereof.

• Marginal note:Value of exported goods

  (4.1) Sections 117 and 119 and subsection (2) apply to a contravention of this Act or the regulations in respect of goods that have been or are about to be exported, except that the references to “value for duty of the goods” in those provisions are to be read as references to “value of the goods”.

• Marginal note:Value of goods

  (4.2) For the purposes of subsection (4.1), the expression value of the goods means the total of all payments made or to be made by the purchaser of the goods to or for the benefit of the vendor.

• Marginal note:Value of goods set by Minister

  (4.3) If the value of the goods cannot be determined under subsection (4.2), the Minister may determine that value.

• Marginal note:Service of notice

  (5) Service of the notice referred to in subsection (1) is sufficient if it is sent by registered mail addressed to the person on whom it is to be served at his latest known address.

• Marginal note:Interest

  (6) A person on whom a notice of ascertained forfeiture has been served shall pay, in addition to the amount set out in the notice, interest at the prescribed rate for the period beginning on the day after the notice was served and ending on the day the amount is paid in full, calculated on the outstanding balance. However, interest is not payable if the amount is paid in full within thirty days after the date of the notice.

Marginal note:Seizure cancels notice

125 The seizure under this Act of anything in respect of which a notice is served under section 124, except as evidence alone, constitutes a cancellation of the notice where the notice and the seizure are in respect of the same contravention.

Marginal note:Limitation respecting seizure

126 Nothing in respect of which a notice is served under section 124 is, from the time the amount demanded in the notice is paid or from the time a decision of the Minister under section 131 is requested in respect of the amount demanded, subject to seizure under this Act in respect of the same contravention except as evidence alone.

Review of Seizure, Ascertained Forfeiture or Penalty Assessment

Marginal note:No review or appeal

126.1 Sections 127 to 133 do not apply to a contravention of subsection 40(3) of this Act by a person referred to in paragraph (c) of that subsection, or to a contravention of section 32.2 of this Act in circumstances to which subsection 32.2(6) of this Act applies, or to a contravention of subsection 95(1), 118(1) or (2), 121(1) or 122(1) of the Customs Tariff.

Marginal note:Review of ascertained forfeiture or penalty assessment

127 The debt due to Her Majesty as a result of a notice served under section 109.3 or a demand under section 124 is final and not subject to review or to be restrained, prohibited, removed, set aside or otherwise dealt with except to the extent and in the manner provided by sections 127.1 and 129.

Marginal note:Corrective measures

• 127.1 (1) The Minister, or any officer designated by the President for the purposes of this section, may cancel a seizure made under section 110, cancel or reduce a penalty assessed under section 109.3 or an amount demanded under section 124 or refund an amount received under any of sections 117 to 119 within 90 days after the seizure, assessment or demand, if

  • (a) the Minister is satisfied that there was no contravention; or

  • (b) there was a contravention but the Minister considers that there was an error with respect to the amount assessed, collected, demanded or taken as security and that the amount should be reduced.

• Marginal note:Interest

  (2) If an amount is returned to a person under paragraph (1)(a), the person shall be given interest on that amount at the prescribed rate for the period beginning on the day after the amount was originally paid by that person and ending on the day it was returned.

Marginal note:Report to President

128 Where goods or a conveyance has been seized under this Act, or a notice has been served under section 109.3 or 124, the officer who seized the goods or conveyance or served the notice or caused it to be served shall forthwith report the circumstances of the case to the President.

Marginal note:Request for Minister’s decision

• 129 (1) The following persons may, within 90 days after the date of a seizure or the service of a notice, request a decision of the Minister under section 131 by giving notice to the Minister in writing or by any other means that is satisfactory to the Minister:

  • (a) any person from whom goods or a conveyance is seized under this Act;

  • (b) any person who owns goods or a conveyance that is seized under this Act;

  • (c) any person from whom money or security is received pursuant to section 117, 118 or 119 in respect of goods or a conveyance seized under this Act; or

  • (d) any person on whom a notice is served under section 109.3 or 124.

• Marginal note:Burden of proof

  (2) The burden of proof that notice was given under subsection (1) lies on the person claiming to have given the notice.

Marginal note:Extension of time by Minister

• 129.1 (1) If no request for a decision of the Minister is made under section 129 within the time provided in that section, a person may apply in writing to the Minister for an extension of the time for making the request and the Minister may grant the application.

• Marginal note:Reasons

  (2) An application must set out the reasons why the request was not made on time.

• Marginal note:Burden of proof of application

  (3) The burden of proof that an application has been made under subsection (1) lies on the person claiming to have made it.

• Marginal note:Notice of decision

  (4) The Minister must, without delay after making a decision in respect of an application, notify the applicant in writing of the decision.

• Marginal note:Conditions for granting application

  (5) The application may not be granted unless

  • (a) it is made within one year after the expiration of the time provided in section 129; and

  • (b) the applicant demonstrates that

    • (i) within the time provided in section 129, the applicant was unable to request a decision or to instruct another person to request a decision on the applicant’s behalf or the applicant had a bona fide intention to request a decision,

    • (ii) it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.