1. March 25-26, 2013 session Version 12.0
Accounts Receivable Ledger Project (ARL) BCCC CARM Sub-Committee Updates and New Scenarios
March 25-26, 2013 session
Version 12.0

2. Purpose
To provide examples and updates of how ARL will affect the commercial process between Importers, Brokers, and the CBSA.
To get approval of scenarios from the BCCC Trade members
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

3. ARL Design Adjustments

4. Summary of Prior Feedback
Issue
Feedback
Billing Harmonization
Difficult for some client groups to adopt (CTC, CCLA) and don’t understand the business benefits to trade and to CBSA
CADEX/EDIFact vs. XML
Agreement that XML is the direction for the future; however some client groups need lead time to adopt. Need sense of CBSA’s IT architecture plans.
Offsets/B2 Credits
Need ability to direct credits to brokers where broker has paid and the Power of Attorney enables this.
Payment Allocation
Need the ability to direct payments at the transaction level.
Payments (Cash, Cheque and ePayment)
Some have a preference towards payment by cheque
Disputed Amounts
The proposal is unclear
Credits/Refunds
Interest Rate Harmonization
Desire to harmonize practices with CRA and other OGD

5. Design Adjustments related to BCCC input
Issue
Design Proposal
Billing Harmonization
Status Quo
CADEX/EDIFact vs. XML
CADEX/EDIFact and XML will be available
Offsets/B2 Credits
Credits will go to the importer account unless otherwise directed to the broker by the Adjustment Request (B2) form and process. Refund will appear on the importer’s daily notice. Power of Attorney authorization may be subject to audit.
Payment Allocation
Rules will be applied at the importer account level.
Payments (Cash, Cheque and ePayment)
Encourage ePayments. For payments <$25M continue to have the ability to pay by Cash Cheque for April 2014.
Disputed Amounts
Transactions with a status of Secured or Appealed will have a clearing lock applied to avoid applying payments to disputed item(s) through the clearing process.
Credits/Refunds
Automatic refund threshold is $1,000 otherwise on a request basis.
Interest Rate Harmonization
Requires regulatory changes thus will come in later components of the CARM program.

6. ARL Design Scenarios

7. Introduction
The Accounts Receivable Ledger is a fully integrated commercial client-based accounting system that will provide the CBSA with a financial controls framework.
ARL will allow for the detection of unexplained differences between the receivables legacy system and the general ledger for financial reporting. Moreover, it will:
Introduce electronic payment remitting options (EDI and internet banking) to importers and brokers;
Provide the CBSA Commercial clientele with an electronic, enhanced and comprehensive daily & monthly statement of account;
Move client accounting information from multiple legacy systems to a fully integrated and centralized client based accounting system; and
Introduce a process which will allow the CBSA to consolidate regional client accounting by offsetting credits against debits.

8. Scenario Index Perfect World/New Process (Non-CSA)
Multiple Brokers’ and Importer payments are applied against an Importer’s SOA (Non-CSA)
T- Accounts (14), posting/clearing (Non-CSA)
Reconciliation process
Cash B3
Automatic Allocation of Incoming Payments (Non-CSA)
Importer NSF cheque process
Broker NSF cheque process
Late Accounting (Non-CSA)
Offset/Disbursements (Non-CSA)
B2-1 Detailed Adjustment Statement (DAS): Credit recipient to be decided by broker (B2 Adjustment Request) (Non-CSA)
B2-1 (DAS) – Broker submits B3/CBSA generates DAS (Non-CSA)
B2-1 (DAS) – No Broker Involved (Non-CSA)
Duplicate payment recovery process
B2-1 (DAS) – 2 Brokers involved / DN’s & SOA’s (Non-CSA)
Importer Transacts with Wrong Broker (Non-CSA)
Broker’s Transaction appears on another broker’s account – CBSA Error (Non-CSA)
Importer’s Transaction appears on another importer’s account – CBSA Error (Non-CSA)
Importer’s Transaction appears on another Importer’s Account – Broker Error (non CSA)
Overrides (Non-CSA)
GST Option (Non-CSA)
Importer Direct Security (IDS) Option (Non-CSA)
RSF & Payment
Importer / Broker Submits Paper B3 to a Non-Terminals office (NTO) (Non-CSA)
CLVS posting (Non-CSA)
SOA & DN for Importer where there is a residual credit greater /equal to and smaller than the threshold (Non-CSA)
Temporary Admission Permit (E29B) – Cash only
RMD Corrector

9. Scenario 1: Perfect World/New Process (Non-CSA)
Clients import commercial goods into Canada.
Proper import/release documentation is provided; goods are released.
Importers and/or Brokers submit CBSA coding form (B3) by the final accounting due date.
ARL will generate a Daily Notice (DN) of all recorded transactions for that day.
Brokers and Importers using RPPP will receive DN’s. If there are no transactions, no DN will be generated.
The transaction section of the SOA will show DN summary totals of the accounting period i.e. the 25th of a month to the 24th of the following month. This is the same billing period as the current process. The major difference being that the DN/SOA are comprised of all transactions; not only B3’s and LAP’s. SOA will also be generated sooner than currently.
On the 25th day of every month, Importers and Brokers will receive a SOA displaying daily summary totals of financial activity for each day of the previous billing period. For Brokers, SOAs will be broken down by client.
Brokers/Importers may pay electronically via their Financial Institution (FI), or provide payment at a CBSA office by the last business day of the month in which the SOA was generated. Details of payments can be found in scenario 4.
Payments made will appear on the CBSA clients’ following DN.
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

10. Scenario 1 Daily Notice January 29

11. Scenario 1 Daily Notice January 30

12. Scenario 1 Daily Notice February 5

13. Scenario 1 Statement of Account February 25

14. The following pages will show:
Scenario 2: Multiple Brokers’ and Importer payments are applied against an Importer’s SOA (Non-CSA)
The following pages will show:
Importer DN with partial payment to its account
Broker 1 DN with partial payment to Importer account
Broker 2 DN with partial payment to Importer account
Importer SOA with due amounts

15. Scenario 2 – Importer DN

16. Scenario 2 – Broker DN

17. Scenario 2 – Broker DN

18. Scenario 2 – Importer SOA

19. Scenario 3: T- Accounts, posting/clearing (Non-CSA)
Date & Description
Debit
Credit
1st B3 Assessment
$100
2nd B3 Assessment 50
3rd B3 Assessment
100
4th Daily Notice
5th Daily Notice (opportunities to dispute) ….
Statement of Account (you owe $250) …
Payment
$250
Bottom Line: Account is in good standing
BCCC Working Group Discussion

20. Scenario 3: Short-Pay Scenario, no B2 (Non-CSA)
Date & Description
Debit
Credit
1st B3 Assessment
$100
2nd B3 Assessment 50
3rd B3 Assessment
100
4th Daily Notice
5th Daily Notice (opportunities to dispute) ….
Statement of Account (you owe $250) …
Payment (clears 100, 50 and 50 of 3rd)
$200
Bottom Line: Account underpaid by $50
BCCC Working Group Discussion

21. Scenario 3: B2 Adjustment Request (Non-CSA)
Date & Description
Debit
Credit
Jan 1st B3 Assessment
$100
Jan 2nd B3 Assessment 50
Jan 23rd B3 Assessment
100
4th Daily Notice
Feb 5th B2 adjustment request for the item on the Jan 2nd
Feb 25th Statement of Account (you owe $250)
Feb 28th Payment (clears 100, 100 and 50)
$250
March 9th B2-1 adjusts B3 Assessment on the item for Jan 2nd
$50
March 25th Statement of Account (you are over paid by $50)
Bottom Line: Account in good standing ($50 credit)
BCCC Working Group Discussion

22. Scenario 3: Short-Pay Scenario, B2 (Non-CSA)
Date & Description
Debit
Credit
Jan 1st B3 Assessment
$100
Jan 2nd B3 Assessment
$ 50
Jan 23rd B3 Assessment
$100($50 left on March 1)
4th Daily Notice
Feb 5th B2 adjustment request for the item on the Jan 2nd
Feb 25th Statement of Account (you owe $250)
Feb 28th Payment (clears 100, 50 and 50 of the 3rd)
$200
March 9th B2-1 adjusts B3 Assessment on the item for Jan 2nd
$50
March 25th Statement of Account (you owe $0) …
Bottom Line: Account in good standing on March 25th Statement

23. Scenario 3: AMPS, no appeal (Non-CSA)
Date & Description
Debit
Credit
21st Jan. Notice of Penalty Assessment (NPA)
$100
2nd Feb. B3 Assessment 50
3rd Feb. B3 Assessment
100
4th Feb. Daily Notice …
25 Feb. Statement of Account (you owe $250)
$240 payment clears $100 penalty, $50 item, $90 of the $100 item
$240
Bottom Line: Account underpaid by $10
BCCC Working Group Discussion

24. Scenario 3: AMPS not yet due (Non-CSA)
Date & Description
Debit
Credit
1st Feb. Notice of Penalty Assessment (NPA)
$100
2nd Feb. B3 Assessment 50
3rd Feb. B3 Assessment
100
4th Feb. Daily Notice …
25 Feb. Statement of Account (you owe $250 including $100 NPA not yet due)
$240 payment: skip NPA as Payment due date not reached; clears $50 item, $100 item B3.
$240
Bottom Line: $90 remains on account until NPA payment due date reached.
BCCC Working Group Discussion

25. Scenario 3: Cancellation/Reversal in same period (Non-CSA)
Date & Description
Debit
Credit
1st Notice of Penalty Assessment (NPA)
$100
2nd B3 Assessment 50 …
9th $100 NPA reversal shown on DN
25th Statement of Account (you owe $50)
$50 payment clears $50 item
Bottom Line: Account is in good standing
BCCC Working Group Discussion

26. Scenario 3: Cancellation/Reversal in next period (Non-CSA)
Date & Description
Debit
Credit
Balance
1st Notice of Penalty Assessment (NPA)
$100
2nd B3 Assessment 50
150 …
25th SOA (you owe $150)
$50 short payment clears $50 of the $100
$50
100
Interest posted 6
106
Next month, the Cancellation/Reversal of the NPA and interest takes effect
100 6
Statement of Account (you owe $0)
Steps:
Reverse $50 payment clearing
Reverse NPA
Reverse interest
Clear $50 B3
BCCC Working Group Discussion
Bottom Line: Account is in good standing

27. Scenario 3: Payment in advance of SOA (Non-CSA)
Date & Description
Debit
Credit
Balance
9th B3 Assessment
$10,000 …
20th interim payment
$5,000
21st B3 Assessment
25th Statement of Account (you owe $10,000)
Bottom Line: Account is in good standing
BCCC Working Group Discussion

28. Scenario 3: Late B3 (Non-CSA)
Date & Description
Debit
Credit
Balance
9th of Month 1 B3 Assessment
$10,000 …
25th of Month 1 Statement of Account
26th of Month 1 ‘late’ B3 Assessment (accounting due date was in the prior period)
$5,000
15,000
31stth of Month 1 pay $10,000
10,000
5,000
10th of Month 2 pay $5,000
25th of Month 2 Statement of Account (you owe interest between the 31st of M1 to 10th of M2 for late B3) 30
25th of Month 2 B3 Assessment
1000
1,030
30th of Month 2 Payment of $1,030
BCCC Working Group Discussion
Bottom Line: Account is in good standing

29. Scenario 3: AMPS appealed prior to SOA (Non-CSA)
Date & Description
Debit
Credit
1st Notice of Penalty Assessment (NPA)
$100
2nd B3 Assessment
$50
3rd B3 Assessment …
5th Initiate NPA appeal of the item on the 1st
Appeal penalty and clearing lock established ….
Statement of Account (you owe $150)
$150 payment ignores locked penalty, clears $50 item and $100 item
$150
BCCC Working Group Discussion
Bottom Line: Account is in good standing

30. BCCC Working Group Discussion
Scenario 3: AMPS appealed post SOA but prior to payment due date (Non-CSA)
Date & Description
Debit
Credit
1st of Month 1 Notice of Penalty Assessment (NPA)
$100
2nd of Month 1B3 Assessment
$50
3rd of Month 1B3 Assessment …
25th of Month 2 Statement of Account (you owe $250)
29th of Month 2 initiate NPA appeal item from the 1st ….
Appeal penalty and clearing lock established
$150 payment ignores locked $100 penalty, clears $50 item, $100 item
$150
Bottom Line: Account is in good standing however the $100 remains and will incur interest if the appeal is unsuccessful
BCCC Working Group Discussion

31. Scenario 3: Interest in cases of lost appeal (Non-CSA)
Date & Description
Debit
Credit
Balance
$100 balance (NPA) carried forward from the prior month
$100 …
25th of Month 3 Interest on penalty from issue date (1st of Month 1) $6
106
25th of Month 3 SOA (you owe $106)
25th of Month 3 Payment
$106 $0
Bottom Line: Account is in good standing
BCCC Working Group Discussion

32. Scenario 3: NPA Appeal after SOA Payment Due Date (Non-CSA)
Date & Description
Debit
Credit
Balance
21st of Month 1 Notice of Penalty Assessment (NPA)
$100
22nd of Month 1B3 Assessment
$50
150
23rd of Month 1B3 Assessment
250 …
25th of Month 2 Statement of Account (you owe $250)
30th of Month 2 Payment $150
100
25th of Month 3 interest posting 6
106
25th of Month 3 Statement of Account (you owe $106)
27th of Month 3 Initiate NPA appeal item from the 21st
of Month 1
Appeal penalty and clearing lock established
25th of Month 4 Statement of Account (you owe 0)
30th of Month 4 Appeal in favour of the importer
Bottom Line: Account is in good standing
BCCC Working Group Discussion

33. Day 2

34. Recap Items What is presented on a Daily Notice (DN)?
What is presented on a Statement of Account (SOA)?
What information should be available on the Portal?
What information is used when a transaction is posted
Today’s scenarios will resume with an overview of how payment allocation (clearing) will work.

35. What is presented on a Daily Notice (DN)?
An importer’s Daily Notice (DN) will contain:
Importer Name and Business Number (BN)
Effective Date (of the DN)
Summary of all payments processed on that day
Summary of refund cheque issued to that importer that day
Itemized documents processed that day:
Document Type and Document #
Release Date
Port
Customs and Duties, SIMA, Excise Tax, Taxes, Other
In addition, a broker’s Daily Notice will contain:
Broker Name and Business Number (BN)
Summary of refund cheque issued to that broker that day
Per Importer BN15 under that broker
Itemized documents processed that day
Summary of all payments processed that day

36. What is presented on a Statement of Account (SOA)?
An importer’s SOA will contain:
Importer Name and Business Number (BN)
Effective Date (of the SOA)
A summary total under that BN15 for that period:
Payment Due Date, Previous SOA Balance, Payment, Refunds, Unpaid Balance, Interest, Transactions, Other Charges, Total Payable
Summary of all DNs issued during that period
In addition, a broker’s SOA will contain:
Broker Name and Business Number (BN)
Payment Due Date
Per BN15 under that broker, a summary total:
Transactions, Other Charges, Total Payable
Summary of each DN in that period

37. What information should be available on the Portal?
For an importer, the portal will make available:
Each Daily Notice (DN)
Each Statement of Account (SOA)
For a broker, the portal will make available:
Each of the broker’s Daily Notices (DN)
Each of the broker’s Statements of Account (SOA)
Outstanding questions/future design considerations:
Can/will the broker see each importer’s DN & SOA in cases where the importer has been authorized?
Can/will the portal show a running balance?

38. What information is used when a transaction is posted
Example information recorded when a transaction is posted:
Document Attribute
Used for
Document #
Unique identification
Document Type
E.g. B3, B2-1, AMP, payment, interest etc.
Value Date
Identifies the effective date of the transaction for the purpose of payment allocation, interest calculation or other beneficial/punitive actions
Posting Date
Identifies the date the transaction was posted
Amount
Amount involved in the transaction
Other Identifiers
BN, ASEC, CC, etc. if applicable

39. Scenario 4: Reconciliation Process
Importers and/or Brokers will remit their payment electronically (internet banking) by the last business day of the month in which the SOA is generated. They may also elect to make their payment in person at a CBSA office.
Broker pays electronically (2 Options):
EDI 820 compliant where a Broker sends a file consisting of the total payment made to the CBSA by that Broker in addition to a breakdown of that global payment by client account (BN15) and amount.
Internet banking. The Broker pays each account individually (BN15 and amount) via their FI (telephone banking may also be used).
Once the payment file has been received by the CBSA in ARL, the original global payment is recorded on the account (Broker). This global amount is then redistributed to the Importers’ accounts as per the payment file breakdown received (Broker Instructions).
Broker pays in person at a CBSA office:
The Broker provides a cheque for the global amount it wishes to pay for. The “Broker Instructions” are sent electronically via EDI 820 providing a detailed list of client accounts (BN15) and amounts. If this cannot be available electronically in time for implementation, a hard copy “Broker Instructions” document will be provided along with the cheque to the CBSA and manually keyed in.
The BSO or cashier will retrieve the Broker account in ARL and post the cheque amount.
The BSO or cashier will generate a Cash Receipt for the amount, in the name of the Broker.
Once the cheque amount is entered in ARL and the “Broker Instructions” are received electronically or manually keyed in, automatic redistribution to identified client accounts will occur.
Clearing transactions will be automatically done using the CBSA pre-defined payment allocation rules (see scenario 6).
In order to clear only the transactions related to a specific Broker, ARL will cross-reference transactions with the Broker ASEC provided within the transaction numbers.
Any specific importer item (single) which needs to be paid may be paid at a CBSA office with ARL access.
Brokers/importers may provide interim payments at any time.

40. Scenario 5: Cash B3 Scenario
Client arrives at a CBSA office to account for and release commercial goods.
Proper import/release documentation is provided.
Importer/Broker submits coding form (B3).
Payment for the B3 is received by the CBSA.
The CBSA will provide the client with a K21 Cash Receipt.
Cash B3s will not appear on DNs but will be posted to client account.
Upon request, a client may receive a printout of their client account which would include these cash B3’s.
A cash payment is blocked from the clearing process until the B3 data is received through the CCS/ARL interface.
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

41. Scenario 6: Automatic Allocation of Incoming Payments (Non-CSA)
The allocation process will match incoming payments and clear outstanding transactions that are due based on the following rules:
A payment for a single transaction may be made at an ARL office;
Transactions that have a status of Secured or Appealed will be excluded from the allocation process; and
Only transactions that are ‘due’ will be reviewed for clearing with incoming payments. If a transaction is not due, it will be ignored for allocation purposes.
Then:
Credit Transactions (B2-1 AP, miscellaneous credits, K32 credits);
Dishonoured payments (NSF) – Fee of $25 and other various charges;
Administrative K23 invoice charges;
Penalties (K9, LAP and NPA)
Interest Charges for Overdue Amounts
Unsecured Transactions B3, B2-1 AR
Unapplied residual payment - in cases where there is a residual value for the payment and the following transactions are outstanding but not yet due, the residual amount will be held on account until the transaction becomes due then clear these transactions: K9, NPA or B2-1AR.

42. Scenario 6: Commercial clients making a payment to CBSA via EDI
Commercial clients transmit an EDI 820 to their financial institution to initiate a CBSA electronic payment. The 820 will be transmitted to CBSA by the FI. The file is to contain the payment amount, the client identifier(s), for which the payment is to be applied against.
FIs generate a confirmation of payment completed.
FIs post the payment transaction in the importer/broker bank account.
FIs deposit the money with Bank of Canada.
FIs provide payment details to CBSA.
The CBSA System receives and decrypts the transformed payment details file.
A unique payment identification number will be assigned for each payment.
CBSA ARL will distribute the payment amounts to their specific accounts according to the “Broker Instructions” provided.
Clearing transactions in ARL will be automatically done using the CBSA pre-defined payment allocation rules.
CBSA reconciles with GBS.

43. Scenario 6: Commercial clients making a payment to CBSA via EDI

44. Broker Statement of Account (Non-CSA)
Importer #1 ( RM0001)
Broker ASEC1
Debit
Credit
ASEC1 B3
$100
ASEC2 B3 70 20
120
Broker Statement of Account
To Pay
RM0001
$120
RM0001 50
$170
Payment
Importer #2 ( RM0001)
Debit
Credit
ASEC1 B3
$50
ASEC6 B3 40 50
Bottom Line: Broker is in good standing

45. Broker Short Pays (Non-CSA)
Broker ASEC1
Importer #1 ( RM0001)
Broker Statement of Account
To Pay
RM0001
$160
RM0001 50
210
Broker submits $190 Payment
$190
Brokers instructions: $140 to Importer #1 & $50 to Importer #2
Debit
Credit
ASEC1 B3
$100
ASEC2 B3 70 20 40
140 20
Importer #2 ( RM0001)
Debit
Credit
ASEC1 B3
$50
ASEC6 B3 40 50
Bottom Line: Importer #1 account’s ASEC1 transactions underpaid by $20

46. Scenario 7: Importer NSF cheque process
On January 31, 2013, Importer « Guy & Mike’s Imports Inc. » submits a cheque in the name of the Receiver General for Canada at a CBSA office with ARL access.
A CBSA employee enters the information in the ARL. Importer transactions are subsequently cleared according to the CBSA Payment Allocation Rules.
On February 15, 2013, the CBSA receives notice that the January 31, 2013 cheque from « Guy & Mike’s Imports Inc. » to the Receiver General for Canada has not cleared due to insufficient funds (NSF cheque).
The CBSA employee receiving such information completes the following steps:
In ARL, reverses the January 31 importer payment. This will trigger the payment reversal to the importer account and « unclear » the related transactions;
Log the NSF cheque in the importer record in ARL;
Contact the importer advising of the NSF cheque;
Issue an administrative NSF charge, currently set at $25;
Interest will be calculated on the Importer account for the non or late payment.
AMPS issued.

47. Scenario 8: Broker NSF cheque process
On January 31, 2013, « The Best Brokers Inc. » submits a cheque in the name of the Receiver General for Canada at a CBSA office with ARL access, providing also the Broker Payment Instructions for redistribution of sums to their identified client accounts.
A CBSA employee enters the information in the ARL and the sums are redistributed accordingly. Importer transactions are subsequently cleared according to the CBSA Payment Allocation Rules.
On February 15, 2013, the CBSA receives notice that the January 31, 2013 cheque from « The Best Brokers Inc. » to the Receiver General for Canada has not cleared due to insufficient funds (NSF cheque).
The CBSA employee receiving such information completes the following steps:
In ARL, reverses the January 31 broker payment. This will trigger the reversal of payments to all importer accounts from that payment made and to « unclear » the related transactions;
Log the NSF cheque in the broker record in ARL;
Contact the broker advising of the NSF cheque;
CBSA employee will issue an AMP (C336) to the broker;
Each importer affected by that NSF cheque is considered an individual occurrence, e.g. 70 Importers under that cheque equals 70 x the AMP penalty to be applied;
Issue an administrative NSF charge, currently set at $25;
Interest will be calculated on all accounts affected for the non or late payments.

48. Scenario 9: Late Accounting (Non-CSA)
Once commercial goods have been imported using RPPP, Importer/Broker submits B3 after the final accounting due date.
A late accounting penalty (LAP) is generated for the late transaction. (LAP cancellation or waivers may still be done as per the current process).
If a cancellation is applied, a credit will appear on the client’s following DN (See example of such credit in scenario 1, third DN).
Where the LAP is issued and subsequently credited, this will be properly reflected on the importer SOA as long as the credit is posted within the same billing period.
If the cancellation and posting is performed after the generated SOA, the $100 LAP will form part of the current SOA total amount but a credit of this same amount will be on the importer account and will be reflected on the following month SOA.
The importer/broker has the option of paying the full SOA amount and receive credit once the LAP credit posting occurs or has the option to short pay the SOA by $100, knowing that the credit has/will occur.
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

49. Scenario 9: Late Accounting (Non-CSA)
Late Accounting Penalty : Cancellation prior to SOA
Since the LAP cancellation occurred prior to the SOA date, the SOA generated on Feb 25th shows only the $ 3000 due.
Importer Account
Debit
Credit
Jan 5th B3
3000
LAP
100
Jan 9th
LAP cancellation

50. Scenario 9: Late Accounting (Non-CSA)
Late Accounting Penalty : Cancellation after the SOA, prior to the payment date. The SOA on February 25th would show $3100. The Importer would see on the DN the LAP cancellation credit. If they chose to only pay $3000, The next SOA would show a zero balance assuming no other activity occurred in the account.
Importer Account
Debit
Credit
Jan 5th B3
3000
LAP
100
Feb 26th
LAP cancellation
Feb 28th
Payment

51. Scenario 9: Late Accounting (Non-CSA)
Late Accounting Penalty : Cancellation after the SOA and Payment date.
The SOA on February 25th would show $3100
The Importer would see on the DN on March 1,the LAP cancellation credit. If they chose to only pay $3000, the original payment would allocate $100 to LAP, $2900 to B3 and have left $100 unpaid duties, that would be cleared by the $ 100 LAP cancellation credit.
Importer Account
Debit
Credit
Feb 5 B3
3,000 ($100)
LAP
100
Feb 28th
Payment
3,000
March 1
LAP cancellation

52. Scenario 10: Offset/Disbursements (Non-CSA)
Different situations may occur that would create a credit to a client;
B2-1 A/P (Credit adjustment to an original B3);
K32 Drawback;
Credit of various invoices following an appeal, cancellation, override, etc. (LAP; K23 Invoice; B3; NPA; K9);
E29B Temporary Admission Permit Cash Security Deposit Credit/Refund
Currently, such credits are assessed at the transaction level, authorized for refund and disbursed individually.
With the implementation of ARL, the CBSA is introducing offsets (similar to what CSA clients do today) at the client account level. Where a transaction as stated above is posted to the client account, the credit amount will be offset to existing debits in the same billing period prior to having any form of disbursement made to the client.
Where a residual credit exists after offset and the client SOA is in a credit position, the CBSA will automatically issue a refund of that credit amount to the client as long as the credit amount is equal to or greater than the threshold amount currently set at $1,000.
If the credit amount is below the set threshold, it will remain on account until the following month SOA. If the SOA is still in that same credit position, ARL will automatically trigger the refund of this amount to the client. Please keep in mind that the GoC does not refund any amounts of less than $2.
Note: A client may make a request for refund of a credit amount (SOA in a credit position) of less than the set threshold .
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

53. Scenario 11: B2-1 Detailed Adjustment Statement (DAS): Credit recipient to be decided by broker (B2 Adjustment Request) (Non-CSA)
A Broker submits an Adjustment Request (B2) for a refund on a specific transaction; the B2 is assessed by the CBSA.
A B2-1 Detailed Adjustment Statement (DAS) is created, resulting in a refund owing to the importer.
The B2-1 is sent to the client (same procedure as today). Entry of the B2-1 credit amount in CCS System (feeds to ARL) will include B2 “field 10” information. This information provided by the broker will direct who ultimately receives the credit amount.
The B2-1will be recorded in the importer account and will appear as a credit transaction on the importer DN as well as on the Broker DN (in that importer section) on the following day.
If the Broker indicated that the credit is to go to the importer, this transaction will form part of the Importer’s daily summary total on his SOA and will be reflected in the same manner on the Broker’s SOA, in that importer portion.
If the Broker indicated on the B2 that the credit should to go to itself, the client’s DN will show the credit amount transaction as well as a debit. This will provide a transparent picture of the process, showing the credit being posted to the importer account then pushed to the Broker’s account. The Importer’s SOA will not show the amount reflected as a credit as they’ll have a plus & minus. The broker will see a credit amount for their own DN (their RM account) as well as summarized as such on their SOA.
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

54. Scenario 11: Importer DN with B2-1 A/P Redirected to Broker

55. Scenario 11: Broker DN with B2-1 A/P Redirected from Importer to Broker

56. Scenario 11: Broker SOA with B2-1 A/P Redirected from Importer to Broker

57. Scenario 12: B2-1 (DAS) – Broker submits B3/CBSA generates DAS (Non-CSA)
A B3 has been submitted by a Broker where the adjustment is initiated directly by the CBSA. A B2-1 DAS is issued.
The B2-1 is sent to the Importer and to the Broker responsible for the B3 while the adjustment amount appears on the Broker and Importer DNs.
If the adjustment is a credit, the refund will be applied as an offset to the Importer’s account.
If the adjustment is a debit, the transaction will appear in the « Other Transactions » section, with a specific due date (30 days from issuance) for that transaction.
On the 25th day of the month, both Importer and Broker will receive a SOA displaying daily summary totals of financial activity for each day of the previous calendar month, including the adjustment amount if it is a payable.
If the adjustment is a receivable, the specific B2-1 will appear in the « Other Transactions » section for that Importer SOA.
The Broker’s SOA will be broken down by client.
NOTE: No B2-1 will appear on DN or SOA for an amount under $7.50 unless broker/importer abuses this privilege (as per D-Memo).

58. Scenario 13: B2-1 (DAS) – No Broker Involved (Non-CSA)
After the final accounting is provided, reason is found to request an adjustment to the original accounting documentation.
An Importer submits an Adjustment Request (B2) for that transaction.
The B2-1 is created by the CBSA and is sent to the Importer while the adjustment amount is posted on the Importer’s account and appears on its DN.
If the adjustment is a credit, the refund will be applied as an offset to the Importer’s account.
If the adjustment is a debit, the transaction will appear in the « Other Transactions » section, with a specific due date (30 days from issuance) for that transaction.
On the 25th day of the month, the Importer will receive a SOA displaying daily summary totals of financial activity for each day of the previous billing period, also including the specific B2-1 in the « Other Transactions » section if a receivable.
As this transaction was initiated by the Importer, a Broker will not see this transaction appear on their DN or SOA.
NOTE: No B2-1 will appear on DN or SOA for an amount under $7.50 unless broker/importer abuses this privilege (as per D-Memo).

59. Scenario 14: Duplicate payment recovery process
“Guy & Mike’s Imports” January 25, 2013 SOA is for $50K where the Importer has used “The Best Brokers Inc.” for their dealings with the CBSA.
On January 31, 2013, the Importer pays the CBSA $50K for the payment in full for the previous month’s transactions.
On January 31, 2013, “The Best Brokers Inc.” makes a payment and authorizes the transfer of $50K to “Guy & Mike’s Imports” account by submitting their payment instructions.
The CBSA (ARL) transfers $50K from the Broker’s account to the Importer’s account as directed.
An over-payment has occurred!
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

60. Scenario 14: Duplicate payment recovery process (continued)
On February 4, 2013, “The Best Brokers Inc.” contacts the CBSA informing them that they should not have paid the $50K for “Guy & Mike’s Imports” and requests to be refunded.
As the funds are in “Guy & Mike’s Imports’” account and control, only the Importer can request a refund (process TBD). The CBSA directs the broker to ask Guy & Mike’s Imports” to request the refund and subsequently pay/refund them (broker).
“Guy & Mike’s Imports” contacts the CBSA to request a refund of $50K due to the duplicate payment.
Subsequent to verification and internal authorization, the CBSA, through PWGSC, issues a refund of $50K to “Guy & Mike’s Imports”.

61. Scenario 15: B2-1 (DAS) – 2 Brokers involved / DN’s & SOA’s (Non-CSA)
The Best Brokers Inc. » submits coding form (B3) on behalf of “Guy & Mike’s Imports Inc.”.
After the final accounting is provided, reason is found to request an adjustment to the original accounting documentation.
“Guy & Mike’s Imports Inc.” hires “Top Notch Brokers” to request an adjustment for that transaction. “Top Notch Brokers” submits an Adjustment Request (B2) for that transaction.
The B2-1 DAS generated by the CBSA is sent to “Guy & Mike’s Imports Inc.” and/or to “Top Notch Brokers” (Broker responsible for the B2 Adjustment Request).
If the adjustment is a credit, the refund will be applied to the Importer’s account (according to the broker instructions).
If the adjustment is a debit, the transaction will appear in the « Other Transactions » section, with a specific due date (30 days from issuance) for that transaction.
On the day following the B2-1 issuance, this transaction will appear on both “Guy & Mike’s Imports Inc.” and “Top Notch Brokers” Daily Notices.
On the 25th day of the month, “Guy & Mike’s Imports Inc.” and “Top Notch Brokers” will receive a SOA displaying daily summary totals of financial activity for each day of the previous calendar month, but also including the specific B2-1 in the « Other Transactions » section if the B2-1 is a receivable.
Note - « The Best Brokers Inc. » responsible for the original B3 will not be notified as their involvement ended upon creation and transmission of the B3 and possibly payment of that transaction.

62. Scenario 15: “Guy & Mike’s Imports” DN (B3)

63. Scenario 15: “The Best Brokers” DN (B3)

64. Scenario 15: “Guy & Mike’s Imports” SOA (B3)

65. Scenario 15: “The Best Brokers” SOA (B3)

66. Scenario 15: “Guy & Mike’s Imports” DN (B2-1)

67. Scenario 15: “Top Notch Brokers” DN (B2-1)

68. Scenario 15: “Guy & Mike’s Imports” SOA (B2-1)

69. Scenario 15: “Top Notch Brokers” SOA (B2-1)

70. Scenario 16: Importer transacts with wrong broker (Non-CSA)
Importer or carrier arrives at the border to release goods and goes to a different Broker (Broker B) than the Broker originally contracted (Broker A) to get the release/accounting documentation done.
Accounting documentation (B3) is created by Broker B and presented to the CBSA.
After the fact, Broker A or B realizes that the importation of goods was documented by the wrong Broker.
The CBSA will not partake in this dispute as it is not an accounting or documentation error, but rather a dispute between Brokers and respective to the Importer-Broker relationship. The CBSA received proper release and accounting documentation.
The transaction will appear on the Importer DN and Broker B’s DN, and the amount due will form part of the Importer and Broker B’s SOA for proper payment.
The CBSA will expect payment of duties & taxes on the payment due date.

71. Scenario 17: Broker’s Transaction appears on another broker’s account – CBSA Error (Non-CSA)
Broker (Broker 1) advises a CBSA office with ARL access of the error (i.e., the transaction belongs to a different Broker (Broker 2).
The CBSA reviews the documentation (DN) immediately, if possible.
Upon confirmation of the error, the transaction will be moved to the appropriate account or placed in a suspense account if the appropriate account cannot be found immediately.
The transaction is manually corrected. The two Brokers involved will see the adjustment on their respective DN’s. Broker 1 will see the transaction as a credit while Broker 2 will see this transaction appear as a debit.
If the transaction is unchanged but simply moved, there is no change to the importer account and DN required.
If the transaction number or amount(s) is changed, transaction credit and repost with new data will occur and will show on the subsequent DN.
Note that in order for this to appear on the appropriate SOA, the error must be corrected no later than the last business day before the SOA generation (set to be generated on the 25th of every month).

72. Scenario 18: Importer’s Transaction appears on another importer’s account – CBSA Error (Non-CSA)
Broker or Importer (Importer 1) advises a CBSA office that has ARL access of the error (i.e., the transaction belongs to a different Importer (Importer 2).
The CBSA reviews the documentation (DN) immediately, if possible.
Upon confirmation of the error, the transaction will be moved to the appropriate account or placed in a suspense account if the appropriate account cannot be found immediately.
The transaction is manually corrected. The two Importers (and Broker if applicable) involved will see the adjustment on their respective DN’s. Importer 1 will see the transaction as a credit while Importer 2 will see this transaction appear as debit. If a Broker is also involved, these changes will also appear on the Broker(s) DNs.
Note that in order for this to appear on the appropriate SOA, the error must be corrected no later than the last business day before the SOA generation (set to be generated on the 25th of every month).

73. Autre Mec Import Account Guy & Mike Imports Inc. Account
Scenario 18: Importer Transaction appears on another Importer’s Account
Correction of a debit prior to SOA
Note: the transaction DEBIT date would be Feb 28th
As long as the correction is made prior to the SOA on March 25th, the SOA would show $ 3000 due from Guy and Mike Import Inc. and $ 2900 from Autre Mec Import. Please note that even though the system transfer date is March 3rd, the B3 debit date would be Feb 28th on Autre Mec Import’s account.
Autre Mec Import Account
Debit
Credit
Feb 27th B3
2200
Mar 3rd
700
Guy & Mike Imports Inc. Account
Debit
Credit
Feb 27th B3
3000
Feb 28th
700
Mar 3rd
B3 Correction

74. Guy & Mike Imports Inc. Account Autre Mec Import Account
Scenario 18: Importer’s Transaction appears on another importer’s account
Correction of a debit after to SOA
Note: the transaction DEBIT date would be Feb 28th
The SOA on March 25th would show $ 3700 due from Guy and Mike Import Inc. and $ 2200 from Autre Mec Import. Please note that even though the system transfer date is March 27th, the duties & taxes debit date would be Feb 28th on Autre Mec’s account. The SOA generated on April 25th will reflect the correction, with the credit for $700 on Guy & Mike Imports. The associated debit date of Feb 28th, will preclude any interest charges to be calculated on the $700 since Guy and Mike only paid the $3000 they owed. Autre Mec Import would see the $700 on their April 25th SOA. As long as Autre Mec Import pays the $ 700 by March 29th, they would not have any interest charged. If payment is post payment due date, interest would be charged but manually reversed.
Guy & Mike Imports Inc. Account
Debit
Credit
Feb 27th B3
3000
Feb 28th
700
Mar 27th
Correction
Mar 29th
Payment
Autre Mec Import Account
Debit
Credit
Feb 26th B3
2200
Mar 27th
700
Mar 29th
Payment

75. Scenario 19: Importer’s Transaction appears on another Importer’s Account – Broker Error (non CSA)
Broker or Importer (Importer 1) advises a CBSA office that has ARL access of the error (i.e., the transaction belongs to a different Importer (Importer 2)).
If the error justifies an override (as per the override rules found in D17-1-5), such override will be accepted and executed accordingly. If not, a B2 Adjustment Request will be required.
The Broker or Importer files an override request including supporting documentation, as per Memorandum D & D17-1-5, par These D-Memos will be updated to reflect new procedures following ARL implementation.
The CBSA reviews the documentation (DN, B3, invoice, etc.) immediately, if possible.
Upon confirmation of the error, the CBSA will override the transaction in ARL.
The transaction is manually corrected. Importer 1 (and Broker if applicable) will see a transaction reversal on their next DN while Importer 2 will see this transaction appear on their own DN.
Note that in order for this to appear on the appropriate SOA, the error must be corrected no later than the last business day before the SOA generation (set to be generated on the 25th of every month).

76. Scenario 20: Override (Non-CSA)
Broker or Importer advises a CBSA office with access to CCS of an accounting error.
If the error justifies an override (as per the override rules found in D17-1-5), such override will be accepted and executed accordingly. If not, a B2 Adjustment Request will be required.
The Broker or Importer files an override request including supporting documentation, as per Memorandum D & D17-1-5, par These D-Memos will be updated to reflect new procedures following ARL implementation.
The CBSA reviews the documentation (DN, B3, invoice, etc.) immediately, if possible.
Upon confirmation of the error, the CBSA will override the transaction in CCS, which will feed the correction data to ARL overnight.
The Importer (and Broker if applicable) will see a credit of the original B3 and reposting of this same B3 number with new amounts as a debit on their next DN.
Note that in order for this to appear on the appropriate SOA, the error must be corrected no later than the last business day before the SOA generation (set to be generated on the 25th of every month).

77. Scenario 21: GST Option (Non-CSA)
Upon importation of commercial goods using RPPP, the Broker and Importer agree to use the GST Option for a specific transaction.
Broker submits B3 on behalf of his client, coding Field 6 of the B3 with a “G” for the GST Option used.
The ARL will generate a DN of all recorded transactions to the Importer/Broker on the following day.
Both the Broker’s and Importer’s DN will show this transaction with a « G » in the GST/IDS Option column.
The Importer SOA will show a Total Payable that includes GST/IDS Option amounts.
The Broker SOA will show a Total Payable for each of their importer with transactions that billing month. These Total Payables will include the GST/IDS Option amounts. The totals may not match the importer totals if the importer used more than one broker or had transactions not identified in ARL with a broker ASEC.
The ARL will provide internal controls to identify GST Option amounts that are not paid on time.
ARL will produce a report of any “uncleared” B3 transactions identified with a “G” and linked to a specific Broker ASEC number. Where such uncleared transactions exist, the unit responsible for - Account Securities will notify both broker and importer of the non-payment.
GST option privileges may be revoked.
Note: This process allows the removal of the GST/IDS Option and “Difference” lines from the previous SOA version. This also simplifies clearing controls.

78. Scenario 21: Clarification of Broker payment clearing in the Importer’s account under GST Option
Date & Description
Debit
Credit
Balance
Jan 5: B3 Broker’s ASEC ($40 duties, $80 GST)
$40 80
120 …
Jan 10: B3 Broker’s ASEC ($50 duties, $60 GST) 50
170 60
230
Broker’s DN’s summarized on SOA (importer owes $90 duties and $140 GST)
Broker submits $90 payment clearing:
- Clears Jan 5 $40 duty
- Skips Jan 5 $80 GST
- Clears Jan 10 $50 duty
- Skips Jan 10 $50 GST
$90
140
Since the B3 has the posting attribute = ‘G’
attribute = ‘G’
Bottom Line: broker is in good standing
3/7/2013
BCCC Working Group Discussion

79. Scenario 22: Importer Direct Security (IDS) Option (Non-CSA)
Upon importation of commercial goods using RPPP, the Importer (having their own account security) uses a Broker to provide their B3.
Two scenarios may occur:
First, the Broker completes the B3 and uses the Importer’s own transaction number (Importer ASEC as 1st 5 digits). In this case, field 6 is to be left blank. The transaction will be posted to the Importer account and will only appear on the Importer DN (ARL uses the ASEC, the transaction number, along with the BN15 in field one of the B3 to identify where the transaction is to appear on; which DN).
Payment will need to be made by the importer as the transaction will not be on the broker DN or SOA.
Second, the Broker completes the B3 using their own transaction number (Broker ASEC as 1st 5 digits). The Broker will insert the letter “I” in field 6 of the B3, indicating that this Importer has posted their own security. The transaction will be posted to the Importer account and will appear on both the Importer and Broker DN.
Payment may be made by the broker or importer.
Payment made by the Importer will appear on their following DN and SOA.
Payment made by the Broker will appear on their DN and SOA as well as on the Importer’s.

80. Scenario 23: RSF & Payment
To be finalized
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

81. Scenario 24: Importer/Broker Submits Paper B3 TO A Non-Terminal Office (NTO) (Non-CSA)
Client arrives at a CBSA office to release commercial goods.
Proper import/release documentation is provided; goods are released.
Importer/Broker submits coding form (B3).
Port of Entry sends B3 form to another CBSA office for data entry into CCS.
Once the B3 is keyed into CCS (later date), ARL will post the transaction on the Importer’s DN the following day.
The B3 will be backdated in CCS with proper accounting date.
On the 25th day of every month, Importers and Brokers will receive a SOA displaying daily summary totals of financial activity for each day of the previous billing period. For Brokers, SOAs will be broken down by client.
If the B3 transaction is received by ARL after the generation of the SOA, the importer/broker should provide payment for the SOA but also for this B3.
If payment is received without this B3 added to the SOA amount, interest will be charged from the payment due date until payment received.
The late B3 will appear on the subsequent SOA amount.
Note 1: The ARL/CARM Project team will ensure emphasis is made on NTO personnel to expedite B3’s to Terminal Offices to ensure timely keying of entries in CCS. In order to ensure this event does not occur, all efforts should be made by a client to provide paper B3’s to “Terminal Offices” only.
Through the CARM initiative, the CBSA aims to address a number of problems in an
effort to improve accountability and client service and streamline processes for
Agency operations.
The CBSA is committed to delivering border services in an open and
transparent manner so that the commercial importing process is more predictable
and consistent.
As a result, the Agency has responded with a number of key initiatives including a three year improvement strategy. Through these initiatives, the CBSA has committed to work closely with the trade community to find ways to simplify and streamline commercial processes and programs.

82. Scenario 25: CLVS posting (Non-CSA)
Where a Courier/Broker imports LVS goods and accounts for them on a “F” type B3 (identified as the one single Importer and BN15, as the B3 is for a single client), the B3 will be posted to the Importer’s account, DN, and SOA.
Where a B2-1 DAS credit occurs, the credit will be posted to that Importer account and the refund (offset first) will be made accordingly.
Where the B2 adjustment request was made by the Courier/Broker, see Scenario #4.
Where an adjustment request is made by the Importer, see Scenario #6.
Where a Courier/Broker imports LVS goods and accounts for them on a “F” type B3 (identified as the Courier/Broker and their BN15, as the B3 will be posted to the courier/broker account for multiple clients):
A manual process is required in order to isolate the specific importer’s goods (duties & taxes). Once isolated, a B2-1 will be produced and fed to ARL.
ARL will post the transaction to the client account and refund accordingly (offset first; disbursement second).
If B2 is submitted by the courier/broker and identified to receive refund, not the importer, see scenario 11.
Where the importer is a non-commercial client, a B2G “CBSA Informal Adjustment Request” will be used to request a refund of all or part of the duties & taxes.
This process is not part of the ARL scope and will remain as is.

83. Scenario 25: CLVS client refund where B3 for a single importer

84. Scenario 25: CLVS client refund where B3 for a single importer
The Importer submits a B2 for an adjustment on the F type B3;
After assessment from the CBSA, a B2-1 is issued and posted to the Importer account.
Note: The Broker or courier involved will not see this B2-1 appear on their DN as they were not involved with the adjustment.

85. Scenario 25: CLVS where B3 for a full consolidation/multiple Importers

86. Scenario 25: CLVS client refund (B2-1) where B3 for a full consolidation/multiple Importers
The Importer submits a B2 for an adjustment on the F type B3;
After assessment from the CBSA, a B2-1 is issued and posted to the Importer account;
Note: The Broker or courier involved will not see this B2-1 appear on their DN as they were not involved with the adjustment.
Note: The B3 number is the “dummy” B3 created to extract this importer’s portion of the consolidated B3.

87. Scenario 26: SOA & DN for Importer where there is a residual credit greater/equal to & smaller than the threshold ($1,000) (Non-CSA)
The following pages will show:
Importer SOA with a residual credit greater than threshold.
Importer DN with a posting following refund process.
Importer SOA with a residual credit smaller than threshold.
Importer DN with a posting for unapplied payment.

88. Scenario 26 – Importer SOA/Residual credit > threshold

89. Scenario 26 – Importer DN showing refund

90. Scenario 26 – Importer SOA/Residual credit < threshold

91. Scenario 26 – Importer SOA with < threshold credit

92. Scenario 27: Temporary Admission Permit (E29B) – Cash only
A client (commercial) arrives at the border with the intent of temporarily importing merchandise into Canada.
The BSO determines if a security deposit (SD) is required. If yes, the BSO will create an E29B and obtain a SD from the client.
If the SD is in the form of cash or cheque, the E29B information is entered in ARL as a liability.
Subsequently, if all imported goods identified on the E29B are being exported from Canada:
The BSO will check the E29B “Examined by me and re-exported from Canada” box/field on the form. A paper copy of the acquitted E29B will be provided to the client.
The acquittal of the E29B within ARL will trigger the refund process to the client. The refund will be in the form of an offset first to the importer account. If a residual credit exists, a disbursement will be issued if threshold is reached (see scenario 3).

93. Scenario 27: Temporary Admission Permit (E29B) Cash Only
If any merchandise is left in the country, duties and taxes are calculated on form B3 for this merchandise.
Any duties and taxes owing are offset against the E29B cash security deposit.
If duties and taxes owed are less than the security deposit, the Importer/Exporter will not pay the duties & taxes and the same amount of the provided security deposit will be converted from liability to revenue. The remainder will be refunded (offset 1st, disbursement 2nd).
If the security deposit does not cover all duties and taxes owed:
The provided security deposit will be converted from liability to revenue.
The difference will be collected immediately unless the client or their agent has ASEC. In the latter case, the amount due will be posted as a debit on the importer account and the B3 will appear on their DN.

94. Scenario 28: RMD CORRECTOR
“The RMD Corrector may only be used in situations where following the release of goods, but prior to final accounting, changes are required to either the:
Importer business number
transaction number
cargo control number(s)
container number(s)
sub-location code
customs office (port) code of release
Details can be found at:

95. Summary of voting results
28 Scenarios, one with 15 Variants, one scenario deferred - RSF and summary
3/7/2013
BCCC Working Group Discussion

96. CONTACT US