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

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Act current to 2021-02-15 and last amended on 2020-07-01. Previous Versions

PART V.1Collections (continued)

Acquisition of Property and Seizures

Marginal note:Acquisition of debtor’s property

 For the purpose of collecting amounts owed by a debtor, the Minister may purchase or otherwise acquire any interest in the debtor’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption, and may dispose of any interest so acquired in any manner that the Minister considers reasonable.

  • 2001, c. 25, s. 58

Marginal note:Moneys seized from debtor

  •  (1) If the Minister has knowledge or suspects that a person is holding moneys that were seized by a police officer, in the course of administering or enforcing the criminal law of Canada, from a debtor and that are restorable to the debtor, the Minister may, by notice in writing, require that person to turn over the moneys otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s liability under this Act.

  • Marginal note:Receipt

    (2) A receipt issued for moneys turned over is a good and sufficient discharge of the requirement to restore the moneys to the debtor to the extent of the amount so turned over.

  • 2001, c. 25, s. 58

Marginal note:Seizure of chattels

  •  (1) If a person fails to pay an amount as required under this Act, the Minister may give thirty days notice to the person by registered or certified mail addressed to the person at their latest known address of the Minister’s intention to direct that the person’s goods and chattels be seized and sold. If the person fails to make the payment before the expiration of the thirty days, the Minister may issue a certificate of the failure and direct that the person’s goods and chattels be seized.

  • Marginal note:Sale of seized property

    (2) Seized property must be kept for ten days at the expense and risk of the owner and, if the owner does not pay the amount due together with all expenses within the ten days, the property seized shall be sold by public auction.

  • Marginal note:Notice of sale

    (3) Except in the case of perishable goods, notice of the sale setting out the time and place of the sale together with a general description of the property to be sold must be published, a reasonable time before the goods are sold, in one or more newspapers of general local circulation.

  • Marginal note:Surplus

    (4) Any surplus resulting from a sale, after deduction of the amount owing and all expenses, must be paid or returned to the owner of the property seized.

  • Marginal note:Exemption from seizure

    (5) Goods and chattels of any person that would be exempt from seizure under a writ of execution issued out of a superior court of the province in which the seizure is made are exempt from seizure under this section.

  • 2001, c. 25, s. 58

Marginal note:Person leaving Canada

  •  (1) If the Minister suspects that a person who is liable to pay an amount under this Act or would be so liable if the time for payment of the amount had arrived has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice in writing, demand payment of the amount. Despite any other provision of this Act, the person shall pay the amount immediately.

  • Marginal note:Failure to pay

    (2) If a person fails to pay an amount as required, the Minister may direct that the goods and chattels of the person be seized and subsections 97.32(2) to (5) apply.

  • 2001, c. 25, s. 58

Collection Restrictions

Marginal note:Collection action delayed

  •  (1) If a person is liable for the payment of an amount under this Act, if an amount is demanded in a notice served under section 109.3 or 124, or if an amount is demanded under paragraph 133(1)(c) or subsection 133(1.1) in a notice served under subsection 131(2), the Minister must not, for the purpose of collecting the amount, take the following actions until the ninety-first day after the day notice is given to the debtor:

    • (a) commence legal proceedings in a court;

    • (b) certify the amount under section 97.24;

    • (c) require the retention of the amount by way of deduction or set-off under section 97.26;

    • (d) require a person or institution to make a payment under section 97.28;

    • (e) require a person to turn over moneys under subsection 97.31(1); or

    • (f) give a notice, issue a certificate or make a direction under subsection 97.32(1).

  • Marginal note:Appeal to Federal Court

    (2) If a person has appealed a decision of the Minister of Public Safety and Emergency Preparedness to the Federal Court under section 97.23 or 135, the Minister must not take any action described in subsection (1) to collect the amount in controversy before the date of the decision of the Court or the day on which the person discontinues the appeal.

  • Marginal note:Reference to Canadian International Trade Tribunal

    (3) If the President has referred a question to the Canadian International Trade Tribunal under section 70, the Minister must not take any action described in subsection (1) to collect the amount in controversy before the day on which the question is determined by the Tribunal.

  • Marginal note:Effect of appeal

    (4) If a person has made a request under section 60 or 129 or has appealed under section 67 or 68 and the person agrees in writing with the Minister of Public Safety and Emergency Preparedness to delay proceedings on the request or appeal, as the case may be, until judgment has been given in another action before the Federal Court, the Canadian International Trade Tribunal or the Supreme Court of Canada, in which action the issue is the same or substantially the same as that raised in the request or appeal of the person, the Minister may take any of the actions described in subsection (1) for the purpose of collecting the amount payable, or a part of the amount payable, determined in a manner consistent with the decision or judgment in the other action at any time after the Minister of Public Safety and Emergency Preparedness notifies the person in writing that

    • (a) the decision of the Canadian International Trade Tribunal or Federal Court in that action has been mailed to the Minister of Public Safety and Emergency Preparedness;

    • (b) judgment has been pronounced by the Federal Court of Appeal in that action; or

    • (c) judgment has been delivered by the Supreme Court of Canada in that action.

  • Marginal note:Effect of taking security

    (5) The Minister must not, for the purpose of collecting an amount payable, or a part of an amount payable, under this Act, take any of the actions described in subsection (1) if a person has given security to the Minister of Public Safety and Emergency Preparedness when requesting or appealing from a decision of that Minister or the President.

  • 2001, c. 25, s. 58
  • 2002, c. 8, s. 193
  • 2005, c. 38, ss. 78, 85, 145

Marginal note:Authorization to proceed immediately

  •  (1) Despite section 97.34, if, on ex parte application by the Minister, a judge is satisfied that there are reasonable grounds to believe that the collection of all or any part of an amount assessed or demanded under this Act would be jeopardized by a delay in the collection of that amount, the judge shall, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to immediately take any action described in that section to collect the amount.

  • Marginal note:Notice not sent

    (2) An authorization may be granted by a judge notwithstanding that a notice in respect of the amount has not been sent to the debtor at or before the time the application is made if the judge is satisfied that the receipt of the notice by the debtor would likely further jeopardize the collection of the amount and, for the purposes of sections 97.22, 97.24, 97.26, 97.28, 97.31 and 97.32, the amount in respect of which an authorization is granted is deemed to be an amount payable under this Act.

  • Marginal note:Affidavits

    (3) Statements contained in an affidavit filed in the context of an application made under this section may be based on belief but must include the grounds for the belief.

  • Marginal note:Service of authorization

    (4) An authorization must be served by the Minister on the debtor within 72 hours after it is granted, except if the judge orders the authorization to be served at some other time specified in the authorization, and, if a notice has not been sent to the debtor at or before the time of the application, the notice is to be served together with the authorization.

  • Marginal note:How service effected

    (5) Service on a debtor must be effected by personal service or in accordance with the directions of a judge.

  • Marginal note:Application to judge for direction

    (6) If service on a debtor cannot reasonably otherwise be effected as and when required under this section, the Minister may, as soon as is practicable, apply to a judge for further direction.

  • Marginal note:Review of authorization

    (7) If a judge of a court has granted an authorization, the debtor may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization.

  • Marginal note:Limitation period for review application

    (8) An application under subsection (7) must be made

    • (a) within thirty days after the day on which the authorization was served on the debtor in accordance with this section; or

    • (b) within any further time that a judge may allow, on being satisfied that the application was made as soon as was practicable.

  • Marginal note:Hearing in camera

    (9) An application may, on request of the debtor, be heard in camera, if the debtor establishes to the satisfaction of the judge that the circumstances of the case justify in camera proceedings.

  • Marginal note:Disposition of application

    (10) On an application, the judge is to determine the question summarily and may confirm, set aside or vary the authorization and make any other order that the judge considers appropriate.

  • Marginal note:Directions

    (11) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no direction in this section in respect of the matter, a judge may give any direction in respect of the matter that, in the opinion of the judge, is appropriate.

  • Marginal note:No appeal from review order

    (12) No appeal lies from an order of a judge made under subsection (10).

  • 2001, c. 25, s. 58
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