GHY’s Chief Financial Officer - Roger Labossiere - helps you to understand what Canada Customs - Accounts Receivable Ledger (ARL) initiative is and gets you up to speed on upcoming accounting changes which will be implemented and enforced starting January 24th, 2018.
If you're an importer of goods into Canada, you may have heard of ARL, or Accounts Receivable Ledger. ARL is a Canada Border Services Agency, also known as CBSA, initiative to ensure Canada Revenue receives accurate payment of duty and taxes on commercial goods brought into Canada. ARL is a fully integrated and centralized accounting system that now provides electronic payment options.
There are some new payment policies that will be implemented and enforced starting January 24th 2018. The important changes to be aware of are as follows:
If your monthly payment exceeds $50,000,you are required to pay via online banking.
In fact, CBSA is encouraging all importers to make payments electronically regardless of the amount, as this may become the only option in the future. Most banks are set up to facilitate payments to CBSA, however there are some that are not.You must verify this with your bank or you can contact me directly to receive a full list of participating banks.
It is crucial to indicate your 15 digit business number when making your payment so that this amount gets properly allocated to your account.
Payments must be received by 4 o'clock Eastern Standard Time on the last business day of each month.
One final point is that effective January 24th, CBSA will only accept payments in Canadian currency and will no longer accept cash payments. One of the benefits of this new payment option is that you can now keep your money longer instead of paying your broker days in advance.
I recommend you speak to your customs broker about your ARL payment options or feel free to contact me.
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