Customs duty collections on goods imported into Canada are carried out by the Canada Revenue Agency. The Canada Border Services Agency is responsible for determining and assessing the debt.
In Canada, the Customs Act, the Customs Tariff, the Excise Tax Act, the Special Import Measures Act, and/or other relevant legislation regulate the taxes or similar financial obligations that must be paid.
If the debt is not paid despite notification, interest is applied to the debt and legal collection proceedings are initiated.
Before initiating the seizure process, the Canada Revenue Agency is required to send one written notice and make three telephone calls.
After these notifications, the agency has a 180-day period. If it does not initiate legal proceedings within 180 days, it must issue a new written notice or make another telephone call. If it again fails to initiate proceedings after this second written or verbal warning, it is no longer obliged to make further notices or calls.
However, the debtor has the right to contact the creditor agency using the contact number stated in the notification, provide information about their payment situation, and request a settlement regarding a payment plan.
If a debtor proves that they cannot pay due to reasons beyond their control, the debt may be deferred. However, interest continues to accrue during the deferral period. In some cases, part or all of the interest may be waived.
If the debt is not paid through settlement, legal action will be initiated against the debtor.
Once legal action begins, assets, receivables held by other institutions, and receivables from third parties may be seized. Information regarding the seizures is provided by mail.
Furthermore, under the relevant provisions of the Customs Act, the Federal Court may be petitioned for the collection of the debt, and the debt registration certificate issued by the Court constitutes a judgment. Based on this registration, the debtor’s assets may be seized and sold.
Goods that the debtor intends to import or export may also be seized.