On January 25th of this year, the Canada Border Services Agency (CBSA) implemented the Accounts Receivable Ledger (ARL) as the first phase of its Assessment and Revenue Management (CARM) project.
As a result, the CBSA will change its refund process, effective August 1st, 2016.
Under the ARL, Daily Notices (DN) is a replacement to the daily and monthly account statements (K84) and contain transactional details, while the Statement of Account (SOA) provides an overall summary of the duties and taxes.
Importers can receive statements electronically via Electronic Data Interchange (EDI). SOAs will be produced on the 25th day of the month, DNs will continue to be produced daily (unless no activity for the day exists). Payments are due on the last day of the month, unless otherwise specified on a DN/SOA. As of August 1st, the CBSA will offset the refund amount and apply it against any outstanding balance associated with your business number (BN15).
In order to account for the credit offset, importers will need to adjust their business process and modify their financial reconciliation.You can obtain a copy of your statement balance at an ARL- designated office, if you do not hold your own account security number. A list of offices supporting the ARL can be found on the CBSA website here.
A balance that is left over, after the CBSA has applied the credit offset to the amount owed to the Receiver General for Canada, is a residual credit. A credit balance over $1,000* = the CBSA will issue a cheque to the importer. A credit balance under $1,000* = the balance will remain on the account, rolling over to the next month, to be applied against amounts owed to the Receiver General. The credit amount will be disbursed to the importer, if there is a residual credit for two consecutive months.
* Only after the credit offset has been applied
For further information or assistance please contact firstname.lastname@example.org, or call 1-800-667-0771.