Failure to declare car bought in U.S. costs Ottawa man at border

http://www.cbc.ca/news/canada/ottawa/border-customs-declare-canada-ottawa-ogdesnburg-1.3970444

Man forced to pay more than $7,000 in fines, duties, taxes and fees — for a car worth $12,000

By Steve Fischer, CBC News Posted: Feb 07, 2017 3:28 PM ET Last Updated: Feb 07, 2017 4:22 PM ET

An Ottawa man is facing a hefty fine after he failed to declare the purchase of the vehicle he was driving when he returned across the Canada-U.S. border, according to the Canada Border Services Agency.

It's not uncommon for shoppers crossing back into Canada to try to hide their purchases from border guards, CBSA said.

But the agency said in a news release that one Ottawa man took it a step further last month, attempting to hide the fact that he had just bought the very vehicle he was driving in the U.S.

The man was crossing back into Canada at Johnstown, Ont., after what he characterized as a brief shopping trip to Ogdensburg, N.Y. He declared $300 worth of goods. 

The man was driving a 2015 electric car with U.S. plates that he told customs officials a friend had loaned him for a few months.

The border guard decided to send the man for a secondary examination, where his story began to unravel.

Evidence of purchase found on phone

During that inspection, officers searched the car as well as the man's cellular phone, which he unlocked for them. 

Agents discovered emails and an electronic invoice confirming the man had purchased the car in the U.S.

At that point he confessed, CBSA said, admitting he had just bought the car in the U.S. CBSA temporarily seized the vehicle and confiscated the man's NEXUS card.

Customs officials determined the vehicle had a duty value of $12,084 and ordered the man to pay a penalty of $6,646.

CBSA said if the man had simply declared his purchase, it would have cost him $700 in duty and taxes, plus a $295 Registrar of Imported Vehicles (RIV) fee — a total just shy of $1,000.

The driver still had to pay those duties, taxes and fees — as well as the penalty — before his vehicle was released to him.

Penalty could have been even stiffer

According to CBSA, the driver could have faced even harsher penalties including the permanent seizure of the vehicle as well as criminal charges.

CBSA also keeps records of all infractions on its computer system, so the man may well face close scrutiny on future cross-border trips.

In the media release, Leanne Sullivan, CBSA's chief of operations for the Prescott port of entry, said there are lessons here for other cross-border shoppers.

"The single best thing you can do to save time returning to Canada is to simply be open and honest with the CBSA officer. If you are not sure about what to declare, don't hesitate to ask a CBSA officer at a port of entry," Sullivan advised.

Have customs officers asked to unlock your mobile phone at the border?

If you've been asked to unlock your phone at the Canada-U.S. border, CBC Ottawa would like to hear from you. Please contact Steve.Fischer@cbc.ca.