1. This notice is a follow-up of Customs Notice 16-01 providing further information to Trade Chain Partners (TCPs) about the Canada Border Services Agency's (CBSA) implementation of the Accounts Receivable Ledger (ARL).
2. On January 26, 2016, the CBSA introduced ARL, a fully integrated and centralized accounting system that allows for off-setting of account credits against debits, and offers TCPs more comprehensive accounting statements and new electronic payment options.
3. The purpose of this notice is to inform TCPs of changes to the CBSA's process of providing K84 statements to importers and brokers, issuing refunds cheques and providing printed copies of ARL statements.
K84 – Importer/Broker Account Statements
4. With the implementation of the ARL, the K84 – Importer/Broker Account Statements (K84s) have been replaced with electronic Daily Notices (DN) and monthly Statement of Accounts (SOA), providing importers and customs brokers with more comprehensive statements.
5. The CBSA previously communicated that it would continue providing, for information purposes only, reference K84s to TCPs for one full accounting period following the ARL implementation date.
6. The last reference monthly and daily K84s will be communicated electronically on February 25, 2016 and February 26, 2016, respectively. Paper copies of these statements will be available the following business day.
Refunds to Off-set Importer Liabilities
7. In order to provide TCPs with additional time to adapt to the implementation of the ARL, the CBSA will continue to issue payment cheques and defer the introduction of off-setting for all account credits and debits until August 2016.
8. Effective August 1, 2016, all refunds (i.e., credits) will automatically be applied to the client's account to reduce the balance owing. As of this date, the CBSA will no longer issue refund cheques to the importer or care of the agent requesting the refund.
9. As of August 2016, following the monthly release of the SOA, the CBSA will issue a cheque to the importer for any residual credit appearing on the SOA as long as the credit amount is over the CBSA established threshold, or the account has been in a credit standing for a period of two consecutive months.
10. As directed by the Receiver General of Canada, the CBSA will be encouraging importers to move to direct deposit for this residual credit.
Printed ARL Statements
11. The CBSA will only provide, upon request, printed ARL statements for clients that are not certified * to receive electronic statements, or for clients, certified to receive electronic statements, in extenuating circumstances only (e.g., client system outage).
- * The CBSA officer will provide the client with the contact information for the Technical Commercial Client Unit (TCCU) and recommend that they consider options to receive their statements electronically.
12. A broker/agent requesting printed account information for an importer must be able to demonstrate that they hold proper representative authority as granted by their client. The CBSA will accept any form of written authority that indicates that the broker/agent has been authorized to transact business on behalf of the importer; Memorandum D1-6-1, Authority to Act as an Agent, provides additional guidance on the required information.
13. TCPs requiring printed account information will be able to make a request in person at identified CBSA offices.
Updated Forms and D-Memoranda
14. To reflect process changes resulting from the implementation of ARL, the CBSA is currently updating all relevant forms, and revising Memoranda D17-1-5, Registration, Accounting and Payment for Commercial Goods and D17-2-1, Coding of Adjustment Request Forms. It is expected that these will be updated in calendar year 2016.
15. For more information regarding the implementation of the ARL, visit the CARM page, or within Canada, call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time / except holidays). TTY is also available within Canada at: 1-866-335-3237.
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