Can imported goods be confiscated by the government?
Yes, that is called seizure. The action where goods which have entered the country illegally are confiscated. Even the conveyances used to transport such goods can also be seized.
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NOTE: All details pertaining to CARM R2 processes are based on the current information available at the time of writing. As this is subject to change, it’s recommended you periodically check in with the CBSA or your customs broker.