Notice
of Reasons for Seizure
May 30, 1996
Revenue Canada
Registered
Our File: CS-5071 & 5072
Andrew McMechan
P.O. Box 87
Pierson, Manitoba
R0M 1S0
Dear Mr. McMechan
Re: Appeal No. CS-5071/P-523-133 & CS-5072/P-523-132
This refers to your correspondence, dated March 25, 1996 concerning the
above-noted customs seizures at Lyleton, Manitoba, on March 3, 1996 of the
following goods:
John Deere Farm Tractor
Your letter has been accepted as a written request for a Minister's
decision on the above-mentioned seizures.
Please accept this correspondence as the Deputy Minister's written
Notice of Reasons for Seizure. You may, within 30 days from the date
of mailing of this Notice, provide any additional information or
documentation that you believe will assist in making the decision in these
cases. I have attached, for your reference, a transcript of the
Sections of the Customs Act relating to the request for decision process.
The seizures were made because: the said conveyance was to export
barley from Canada without report to Customs and without a valid Canadian
Wheat Board licence, contrary to section 95 of the Customs Act and the
Reporting of Exported Goods Regulations; the said conveyance was removed
from Customs office prior to release by an officer contrary to section 31
of the Customs Act.
According to the reports on file, on March 3, 1996, you were seen by
Customs officials at Lyleton, Manitoba proceeding south into the United
States driving a farm tractor and hauling a wagon. It was
subsequently determined that you had exported from Canada a shipment of
barley. On your return to Canada that same day, you were advised
that your farm tractor was under seizure for unlawfully exporting barley
from Canada. Instead of leaving your tractor with Customs, you left
the port without approval from Customs prior to proper release of the
tractor. You were subsequently returned to the port and your tractor
was placed in the custody of Customs. You were assessed $2,000.00
for using the tractor to unlawfully export the barley and an additional
$200.00 for leaving the confines of the Customs port prior to its proper
release. It is noted you did not take release of the tractor.
I would explain that section 110 (1)(a) and (b) of the Customs Act
allows for the seizure of goods or a vehicle where an officer believes on
reasonable grounds that this Act or regulations have been
contravened. Suction 95(1) of the Customs Act requires exported
goods to be reported to Customs. Subsection 95(4) states that where
goods are required by regulation to be reported in writing, they will be
reported in the prescribed form and containing the prescribed
information. The 'Regulations Respecting the Reporting of Exported
Goods' states that prohibited, regulated or controlled goods under the
Customs Act or any other Act of Parliament must be reported in
writing. Barley requires a Canadian Wheat Board licence to be
exported from Canada. Barley is regulated/controlled by an Act of
Parliament and, as such, must be reported in writing to Customs prior to
export along with the proper export licence.
Customs Memorandum D19-3-2, available to the public, states that an
exporter of wheat or barley must present to Customs, prior to export, two
copies of the bills of lading or scale ticket identifying the quantity and
the grade and protein level of the wheat or barley and two copies of the
Canadian Wheat Board licence.
On the basis of my reading of the above, I would have to conclude that
failure to report the barley to Customs and provide the information and documents
required is a contravention of the Customs Act and the Regulations Respecting
the Reporting of Exported Goods.
The contents of your letter have been noted. With regard to your
representations, I would advise you that subsection 118(a) of the Customs
Act allows for the return of a conveyance seized for an amount equal to
its value or such lesser amount as the Minister may direct. The Administrative
Order is the Minister's directive with regard to the lesser amount
provision of subsection 118(a). Furthermore, as previously stated in
this letter, the Canadian Wheat Board Act and the regulations made
pursuant to that Act require you obtain a licence to export wheat and
barley. The Customs Act and regulations made pursuant to that Act
required that you report your goods and provide the licence and other
documentation on or before the export of the grain.
If you wish to provide any additional information, it should be
forwarded, within 30 days from the date of mailing of this Notice, to the
Department of National Revenue, Adjudications Division, 191 Laurier Avenue
West, Ottawa, Ontario, K1A 0L5, referring to our file number. I can
assure you that all documents and information received will be duly
considered when this matter is reported for final decision.
If you require clarification or wish to discuss the matter further, you
may contact Mike Hadley at (613) 954-7383.
Yours truly,
N.L. Woram,
Manager, Policy & Planning
Adjudications
Attachment
Handwritten Note: This number is an out going line only. It is
impossible to receive incoming calls.
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