- My Jewelry Box Can Lead to Smuggling Charges - housingworksauctions (Flickr)
Consider the case of a wealthy Canadian traveler whose first name is Geeta.
Geeta packed over $100,000 worth of diamond necklaces, platinum bracelets, gold rings and watch bracelets made with precious metals into her jewelry box for a flight to India where she attended a week-long marriage celebration in India. (Jewelry is spelled jewellery in Canada, the United Kingdom and India.)
To her shock, Geeta was arrested by a customs border officer when she returned to Canada for not declaring items imported from outside Canada.
Jewelry Box is Subject to Canada’s Customs Act
How can Geeta be charged for importing a jewelry box full of personal items that she already owned before she left on her trip?
Subsection 12(3.1) of the Customs Act clearly states that the return of goods after they are taken out of Canada is an importation of those goods.
The onus is on the traveler to prove ownership of the jewelry box or similar valuables before they left Canada.
The Customs Act is code law, which leaves little room for arguing with a customs officer.
Smuggling Charges for Bringing Personal Valuables Back to Canada
In Geeta’s case, she was detained and charged with smuggling her own jewelry box back into Canada
Under section 159 of the Customs Act, anyone who smuggles or who tries to smuggle into Canada any goods subject to duties or any goods that are prohibited, controlled or regulated.
Geeta’s jewelry box included 3 watches, each of which has a bracelet made with precious metals. Under the Customs Tariff, those items are subject to 4.5% rate of duty under harmonized system code 9113.10.90.00.
Penalties for Smuggling Jewelry Box into Canada
Subsection 109.1(1) stipulates a penalty of up to $25,000 for failure to comply with any provision of the Customs Act.
If criminal intent can be proven, the jewelry box can be seized and the jewelry sold at a government auction.
Criminal charges involve much higher fines and the possibility of jail time, particularly for repeat offenders.
In tears, a shocked Geeta was able to contact an experienced customs broker for help.
Travel Warning from Jewelry Box Example
The advice from the seasoned customs broker was simple.
Visitors leaving Canada should always have their jewelry appraised and keep any appraisal documentation for re-entry into Canada. That way, customs officers won’t have to debate whether the value of the jewelry box has been enriched while outside Canada.
Most airports have jewelry shops that can perform these appraisals, giving an exact value for the jewelry.
Another tip is to bring copies of original receipts for the jewelry box and similar valuables.
Taking photographs of the owner with her personal jewelry box and its contents is also helpful.
Canada Border Services Agency (CBSA) also has declaration forms to fill out so the traveler can declare their valuables when leaving Canada and on return.
For more details and similar travel warnings, consumers are encouraged to communicate with their local CBSA office or visit the official CBSA website.
Sources: This article provides independent insights based on the CBSA’s Customs Act.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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