Montrealer fined $35,000 for failing to declare luxury watches at border

MONTREAL — In a Federal Court ruling that begins with the judge pondering “time is money,” a Montreal entrepreneur has been ordered to pay a hefty fine after importing a luxury watch without declaring it to customs.

Judge Sébastien Grammond ruled Tuesday that David Segall Blouin must pay a $35,000 fine and $11,400 in Quebec sales tax for a watch he bought two years ago for about $115,000.

In August 2022, Blouin flew to Philadelphia to purchase an A. Lange & Söhne watch from Luxury Bazaar, which describes itself as a pre-owned luxury watch dealer. He returned to Montreal the same day but failed to declare the watch to customs, the ruling said.

Regardless, Blouin had the empty watch box shipped to Canada by FedEx. He claimed that he intended to pay customs duties when the package was delivered to him, but Canada Border Services Agency agents discovered that the manifest attached to the package was worth only six dollars.

They fined Blouin $34,650, or 30 percent of the watch’s value.

Blouin, who owns a transportation and logistics company in Montreal, challenged the fine in federal court, claiming the decision was unreasonable and did not take into account the unique circumstances of his case. He claimed that he had previously imported other, cheaper watches and paid customs duties when they were delivered to him. He said he plans to do the same this time.

But Grammond did not believe the story, as Blouin flew back to Montreal with this watch, while the package sent by courier was declared almost worthless. He said a border official discovered that importing undeclared goods into the country and sending the packaging or invoice by mail was a known scheme known to the agency.

“In short, there is no reason to believe that Mr. Blouin had any intention of declaring the watch or that the whole matter was nothing more than a misunderstanding,” the judge wrote.

Now Blouin must pay the government’s legal fees in addition to the fine and sales tax.

This report by The Canadian Press was first published Oct. 17, 2024.

Maura Forrest, The Canadian Press