The Canada Border Services Agency has issued one of its largest financial penalties of the year after an Ontario business owner was found to have exported thousands of used vehicles without proper declarations. The federal agency announced Monday that the individual faces a $36.9 million penalty, an amount equal to the total value of the vehicles shipped out of the country.
According to investigators, the exporter had been sending used cars from Canada to West Africa but failed to complete the mandatory export reporting required under the Customs Act. The CBSA said the discovery prompted a formal investigation in 2021 by its Criminal Investigations Section in Halifax. The case expanded significantly as new information surfaced, eventually leading to enforcement action in Ontario.
In July 2023, officers executed two search warrants at locations in London, Ontario. Agents seized a wide range of material, including business ledgers, financial documents, vehicle titles, bills of sale, bankers boxes filled with records, computers, mobile phones and SIM cards. Officials said the volume of material reflected the scale of the exporting operation and required extensive analysis.
CBSA analysts reviewed more than seven hundred fifty thousand records connected to the exports. Based on those findings, the agency issued a Notice of Ascertained Forfeiture under section 95 of the Customs Act, a tool that allows the CBSA to assign financial penalties equal to the value of undeclared goods. In this case, the undeclared vehicles were estimated to be worth nearly thirty seven million dollars, leading to the full penalty amount.
Dominic Mallette, regional director general of the CBSA Atlantic Region, said the outcome serves as a significant warning to commercial exporters who fail to comply with reporting rules. He noted that accurate export declarations are essential for border integrity and trade oversight, and companies that bypass legal requirements can expect strong enforcement action. The investigation remains ongoing as the agency continues to monitor vehicle export activities across the country.
