If you've filed a wrong CBSA declaration, Canada has a formal correction process. Here's what to do, how to file a post-entry amendment, and how to avoid penalties.
Making a mistake on your CBSA customs declaration is more common than most Canadian importers want to admit. Maybe you used the wrong HS code, undervalued your goods to save on duty, entered the wrong country of origin, or simply misunderstood what to declare. If you’ve filed a wrong CBSA declaration, the most important thing to know is this: Canada has a formal correction process, it’s accessible, and acting quickly almost always leads to a better outcome than doing nothing. This guide walks you through exactly what happens, what your options are, and how to protect your business from penalties.
When you import goods into Canada, you or your customs broker submits an entry to the CBSA — formally known as a Form B3 (Canada Customs Coding Form) or its electronic equivalent. This document tells CBSA what you imported, what it’s worth, where it came from, what HS tariff classification applies, and how much duty and tax you owe.
Errors on this form fall into a few categories: Classification errors — using the wrong HS code; Valuation errors — declaring a customs value that doesn’t match CBSA’s transaction value rules; Origin errors — claiming preferential tariff treatment without proper documentation; Description errors — listing the wrong product; and Quantity or weight errors — misreporting the amount imported. Each type carries different risk and different correction pathways.
A post-entry amendment (also called a B2 adjustment or voluntary amendment) is a formal request to CBSA to correct a previously filed declaration. It’s the legitimate, government-recognized way to fix a wrong CBSA declaration — and it’s your first and best option if you catch the mistake yourself.
Step 1: Identify the error. Review your original entry documentation against the actual goods received, your supplier invoice, and the correct HS code. If you’re not sure whether your original classification was correct, consult a licensed customs broker.
Step 2: Determine the correction window. CBSA allows amendments within four years of the original release date. This gives you meaningful time to audit your entries and make corrections — but don’t wait longer than necessary.
Step 3: File the amendment. The amendment is filed through the CARM Client Portal or through your customs broker. The amendment must reference the original entry and clearly explain what’s being corrected and why.
Step 4: Pay any additional duties (or request a refund). If the correction means you owe more duty, you’ll need to pay the difference plus interest. If the correction means you overpaid, you can claim a refund — and CBSA does process refund amendments regularly.
If you haven’t fully set up your business on the CARM Client Portal, this is a good time to do it. Since October 2024, the CBSA Assessment and Revenue Management (CARM) system is the primary platform for managing import accounts, paying duties, and filing adjustments. Amendments submitted outside of CARM can face processing delays.
CBSA conducts post-release verifications — audits that can happen months or years after your goods were released. When CBSA initiates an audit, they will issue a detailed adjustment statement. You’ll owe any additional duties, plus interest from the original release date. In cases of gross negligence or deliberate misrepresentation, CBSA can apply penalties under the Administrative Monetary Penalty System (AMPS). Repeated issues can trigger closer scrutiny on future shipments.
The key difference between self-correcting and being caught is the availability of penalty relief. Voluntary amendments generally result in interest charges only — no AMPS penalties. Being caught first removes that protection.
When you proactively identify and correct errors before CBSA contacts you, you demonstrate good faith. AMPS penalties are significantly reduced or waived for voluntary corrections. Your importer risk profile improves and you protect your trusted trader status if you’re enrolled in CBSA programs. A pattern of self-correction shows competence — something that matters if you’re ever audited.
If you’ve made multiple errors across multiple entries, it’s worth doing a full audit of your import history. A customs broker can typically review your past entries systematically and identify correction opportunities — including cases where you may have overpaid and are owed a refund.
Incorrect HS codes: Many importers use their supplier’s HS code from China, which may apply a different tariff schedule. Your HS code needs to be classified under Canada’s Customs Tariff. When in doubt, file a National Customs Ruling with CBSA before you import — this gives you a binding classification you can rely on.
Valuation errors: CBSA uses transaction value as the primary method. But the rules get complex when you’ve paid for tooling, moulds, or packaging separately. These “assists” may need to be added to your declared value. If you paid for a mould in China separately from the per-unit cost, talk to your broker about whether that needs to be declared.
Origin claims without documentation: If you’re claiming a preferential duty rate under CPTPP, CUSMA, or another trade agreement, you need documentation to back it up. Make sure your origin documentation is in order before claiming preferential rates.
Rushed filing: Many entry errors happen when shipments arrive at the port and importers file quickly to avoid storage fees. Build internal processes to have your commercial invoice, packing list, and HS classification ready before the shipment arrives.
AMPS is CBSA’s penalty framework for import compliance violations. Penalties are assessed on a tiered basis. The severity depends on the type of violation, how often it has occurred with your account, and whether the error appears to be negligent or deliberate. For common declaration errors, first-time AMPS penalties typically range from a few hundred to a few thousand dollars, depending on the duty value at stake. Repeated offences for the same violation type can attract penalties of 25% or more of the applicable duty or tax.
The critical distinction: AMPS penalties are assessed when CBSA initiates the correction. When you file a voluntary amendment before CBSA contacts you, the Voluntary Compliance framework applies — AMPS is generally not invoked.
One of the most common sources of inadvertent undervaluation involves “assists” — items or services you provided to your Chinese supplier that enabled them to produce the goods. The most common examples: tooling and moulds paid for by the Canadian importer; engineering drawings or design files provided to the manufacturer; raw materials or components sourced by the importer; and software or technology licensed to the manufacturer.
Under CBSA’s transaction value rules, the cost of these assists must generally be added to the declared value of the goods. Royalties and license fees are another risk area. If you’re paying a licensor for the right to sell a branded or patented product in Canada, and that royalty relates to the goods you’re importing, it may need to be added to your customs value.
Most Canadian businesses importing from China regularly will benefit from working with a licensed customs broker. A broker can classify your goods correctly the first time, review past entries for errors and opportunities, file amendments on your behalf, represent you during CBSA audits, and keep you current with CARM system requirements.
If you’re unsure whether you need one, read our breakdown of what a customs broker does and whether your import volume justifies one.
Some importers discover a past error and choose to hope it goes unnoticed. CBSA’s post-release verification program is active and increasingly data-driven. With the CARM system providing CBSA better visibility into importer activity, inconsistencies are easier to flag than ever. The interest that accrues on underpaid duties starts accumulating from the original release date — waiting doesn’t make the problem smaller, it makes it bigger.
What is a post-entry amendment in Canada?
A post-entry amendment (filed on Form B2) is an official correction to a previously submitted customs entry. It allows importers to fix errors in classification, valuation, origin, or other declaration fields within four years of the original release date.
What happens if CBSA finds an error I didn’t report?
CBSA will issue an adjustment and you’ll owe the additional duties plus interest from the original release date. If the error is deemed to show negligence, AMPS penalties can also apply on top of the duties owed.
Will I be penalized for voluntarily correcting a CBSA declaration error?
Voluntary amendments generally attract interest on any underpaid duties, but AMPS penalties are typically waived or reduced. Acting before CBSA contacts you is always better than waiting.
Can I get a refund if I overpaid CBSA duties?
Yes. If your correction shows you overpaid, you can claim a refund via the amendment process within four years of the original release date.
How long do I have to correct a wrong CBSA declaration?
Generally, four years from the date the goods were released from CBSA custody. However, if CBSA initiates a verification first, the voluntary amendment process is no longer available for that entry.
Navigating CBSA declarations, amendments, and audits gets significantly easier when you have the right sourcing and compliance partners in place from the start. At Epic Sourcing Canada, we work with Canadian importers to source goods from China and Asia that are properly documented, correctly valued, and set up for compliant import from day one.
We’re not a customs broker — but we know how to prepare the commercial invoices, packing lists, and product documentation that your broker needs to file accurate entries the first time. That means fewer corrections, fewer surprises, and a cleaner import record.
If you’re importing from China and want a sourcing partner who understands Canadian compliance requirements, get in touch with the Epic Sourcing Canada team today.
