Canada: What Were The Top 10 Reasons For NEXUS Card Cancellations In 2017?

Last Updated: January 3 2018
Article by Cyndee Todgham Cherniak

We have worked on a number of NEXUS requests for review (that is appeals) in 2017.  We have seen many NEXUS card confiscations and the number of appeals we file increased in 2017 over 2016 (and we filed more appeals in 2016 than in 2015 - there is an upward trend).  Our list of reasons for NEXUS card cancellations is based on our experience and is not based on a review of all the Canada Border Services Agency ("CBSA") Recourse Directorate files.

The top ten reasons (some not particularly good reasons) for the CBSA confiscating NEXUS cards are:

1. The traveler was accused by the CBSA of making a false statement to the CBSA officer (contrary to section 110 of the Customs Act) when they declared goods using the NEXUS kiosk, but provided the incorrect value for duty when repeatedly asked to give a number.  In these cases, the traveler properly declared that they were within their personal exemption limit and that was truthful and correct.

Alternatively, The traveler was accused by the CBSA of making a false statement to the CBSA officer (contrary to section 110 of the Customs Act) when they made a mathematical error adding their receipts of converting the receipts into Canadian dollars.

2. The traveler was accused by the CBSA of making a false statement to the CBSA officer (contrary to section 110 of the Customs Act) or the traveler is accused of providing a false invoice for an expensive item the traveler purchased at a private sales (often as a result of a Craigslist or other ad).  Often the CBSA finds the original listing or advertisement and the value paid was lower than the list price.  The CBSA does not think any negotiation took place.  The CBSA Officer did not watch Pawn Stars and does not know that Rick Harrison often says that advertised prices are often not the amount paid for an item.  The CBSA uses the list price as the value for duty and assesses a level 2 or 3 penalty on the basis that the traveler provided a false statement.

3. The traveler failed to have all their receipts at the time of the secondary inspection and, therefore, was accused of failing to declare goods contrary to section 12 of the Customs Act or making a false statement contrary to section 110 of the Customs Act. The CBSA officer usually obtained values conducting computer research and selected an arbitrary value that the traveler could not disprove at that moment.

Example 1: The traveler did not organize their receipts or threw out a receipt in error or left a receipt in the hotel room.  In an event, the purchased/received goods do not match the receipts and the value is considered by the CBSA to be higher.

Example 2: the traveler went to the United States to pick up goods for a friend and was not given the receipt.  The person asked for, but did not receive the correct value of the goods.

Example 3: The traveler received a gift and did not know the value of the gift.  The traveler estimated the value of the gift (or provided a value that they were told by the person who gave the gift). When the CBSA officer looked up the item on the internet, the CBSA Officer found a different value.

4. The traveler has expensive luggage or an expensive purse that looked new and could not immediately at the time of the secondary inspection provide a receipt for the item.  The CBSA Officer's Narrative Report always states that the luggage or purse smelled new and that the CBSA Officer believed it was purchased on that trip.

5. The traveler declared alcohol, but did not list the types of alcohol.  For example, a traveler who is outside Canada for less than 48 hours must pay duty and taxes on all alcohol.  If the Primary CBSA Officer does not write down all the types of alcohol, the person's NEXUS card will be taken away. For example, we have a client who provided a receipt for alcohol (all purchased at one store).  The Primary CBSA Officer wrote down "wine" and did not write down "spirits" also.  The secondary CBSA office confiscated the traveler's NEXUS card. If a traveler declares 10 bottles of wine and they actually have 12 bottles of wine, the traveler's NEXUS card is often taken. Declaring wine and the correct value is not sufficient.

6. The traveler did not declare goods purchased at a duty-free store in Canada prior to their travel outside Canada.  For example, a client purchased cosmetics at the duty-free store at Toronto Pearson Airport.  The cosmetics were used during her travel outside Canada.  The traveler reviewed the E311 Declaration Card, which asks for the value of goods purchased abroad.  She followed the instructions of the E311 Declaration Card.

7. The traveler failed to declare currency exceeding $CDN 10,000 when leaving Canada (often to go to Las Vegas or the Bahamas on a gambling holiday or when traveling to visit family).  Often the person could not find the CBSA office in the Montreal Trudeau International Airport (often they were traveling from another location in Canada and transiting through Montreal) or could not find the CBSA office at Toronto Pearson International Airport (because the NEXUS office has moved to a location 5-10 minutes away from the airport).

Alternatively, the traveler failed to declare currency exceeding $CDN 10,000 when arriving in Canada.

8. The traveler agreed to pay an administrative monetary penalty for a food item that was seized.  By paying 50% of the fine on-the-spot, the traveler forfeits all appeal rights.  A contravention is registered against the person and they lose their NEXUS card.

9. The traveler used the NEXUS lane when they should not have used the NEXUS lane.  If a person has commercial goods, they are not permitted to use the NEXUS lane.  If the vehicle includes persons who are not NEXUS members, the driver of the vehicle should not use the NEXUS lane.

10. The traveler forgot to check a box on the E311 Declaration Card.  For example, the traveler did not check the box that they exceeded their person exemption limit, but wrote a number in excess of the personal exemption limit.  Another common example is that a traveler has a dog or a cat, but does not check the box for live animals thinking the box only applies to food.
There are many other mistakes that could be listed – these are the most common.  Hope you have happy travels and let the other people spend time in the CBSA's Secondary Inspection Area.

If you run into difficulty and your NEXUS Card is cancelled, consider filing a request for decision.  Here are some articles we have written:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions