Cross‑border Goods Reporting Rules

Summary#

This is a proposed set of rules called the Proceeds of Crime (Money Laundering) and Terrorist Financing Reporting of Goods Regulations that spell out how certain cross‑border goods must be reported and what records must be kept. The proposal was published on November 30, 2024 and interested parties have 30 days to comment. The item is sponsored by the Department of Finance and ties reporting to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

What it does#

• Requires declarations about imported or exported goods to be made at the same time and in the same way as Customs reporting under the Customs Act.
• Allows the person in charge of a non‑commercial passenger conveyance to make declarations in specific situations (for example, when Customs reporting is by radio or telephone).
• Sets record‑keeping rules for people and businesses that import, export, produce, supply, distribute or consume goods that must be reported under the Act:
  • Keep records until the sixth anniversary of the import, export or signing of a certificate in relevant cases.
  • Records include origin, purchase cost, payment, sale/disposal, and tax accounting records required under the Income Tax Act.
  • Additional record types are required for certain importers (identified as CSA importers) and for operators of sufferance or bonded warehouses (details include inventory, transfers, unpacking/packing, etc.).
• Specifies how a retention notice must be given and timelines for holding goods:
  • Retention notice for goods sent by courier or mail must be given within 60 days.
  • Retention period after notice is 30 days for courier/mail shipments and seven days in other cases.
• Establishes an administrative monetary penalty system:
  • Violations of several reporting and retention provisions lead to a notice of violation, with the recipient having 30 days to pay or seek a review.
  • Where a full, timely disclosure is made and the violation was not intentional, the penalty range is $1 to $500.
  • In other cases the penalty is the greater of the goods’ fair market value, the declared value, or the value of the financial transaction used to pay for the goods.
  • Reviews and appeals procedures are set out, and unpaid penalties can be recovered as debts to the Crown.
• Limits on enforcement timing:
  • Proceedings to recover a penalty debt must start within five years of when the debt becomes payable.
  • No proceedings for a violation may start after two years from when the issue arose.
• The regulations are to come into force when a specified provision (section 285) of the Fall Economic Statement Implementation Act, 2023 comes into force (no fixed calendar date given in the notice).

Who's affected#

• Businesses and people who import or export goods that fall under the reporting requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
• Specific groups called out include:
  • Importers and exporters (including those who arrange imports/exports).
  • Producers, suppliers, distributors and consumers who sign related customs certificates.
  • Operators of sufferance warehouses and bonded warehouses.
  • Couriers and mail handlers in cross‑border shipments.
  • Non‑commercial passenger conveyances when passengers bring goods across the border.
• If it is unclear whether a particular shipment or activity triggers the Act’s reporting obligations, that uncertainty remains in the notice — the rules apply only where the Act requires reporting.

Why it matters#

• It clarifies how and when cross‑border goods must be reported, bringing those rules into line with Customs reporting procedures. That makes the process more predictable for traders and travellers.
• It creates clear record‑keeping obligations and retention times (sixth anniversary, 60 days, 30 days, seven days), which can raise the administrative burden and storage costs for affected businesses.
• The penalty rules can lead to fines tied to the value of the goods or transactions, so failures to report or retain records can carry significant financial risk.
• For travellers, the rules affect how and when goods carried on non‑commercial passenger conveyances are declared.
• Because this is a proposed regulation, the rules are not yet in force and may change after the public comment period.