Accounts Receivable Ledger Reference Manual Basic ARL Concepts Scenarios and Clarifications May, 2015

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DOCUMENT INTENT ............................................................................................ 5

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ACCOUNTS RECEIVABLE LEDGER BASIC CONCEPTS ...................................... 5

2.1 Client Accounts ......................................................................................................................... 5 2.2 Brokers vs. Importers .............................................................................................................. 5

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2.2.1

Importer DN and SOA.............................................................................................................................. 5

2.2.2

Broker DN and SOA ................................................................................................................................. 6

2.2.3

Broker vs Importer Account Structure and the Generation of the SOA/DN ..................................... 6

2.2.4

Broker Payments to Client Accounts..................................................................................................... 7

2.3 DN and SOA delivery ......................................................................................................... 8

Scenarios .............................................................................................................. 9

3.1 Scenario 1: Weekend/Holiday Posting/Clearing ................................................................. 9 3.2 Scenario 2: Partial Payment ................................................................................................. 10 3.3 Scenario 3: Interim Payment ................................................................................................ 10 3.4 Scenario 4: AMPS With No Review ....................................................................................... 11 3.5 Scenario 5: AMPS clearing ..................................................................................................... 11 3.6 Scenario 6: AMPS Correction in Same Period ..................................................................... 12 3.7 Scenario 7: AMPS Redress in Subsequent Period .............................................................. 12 3.8 Scenario 8: Late Accounting Penalty ................................................................................... 13 3.9 Scenario 9a: Appealed Without Broker ASEC Prior to SOA .............................................. 15 3.10 Scenario 9b: Appealed With Broker ASEC prior to SOA.................................................. 16 3.11 Scenario 10: Appealed Without Broker ASEC Post SOA .................................................. 16 3.12 Scenario 11: Interest in the Case of Lost Appeal.............................................................. 17 3.13 Scenario 12: Appeal Granted for Importer, B2-1 Secured Late ..................................... 18 3.14 Scenario 13: Cash B3s .......................................................................................................... 18 3.15 Scenario 14: Override.......................................................................................................... 18 3.16 Scenario 15: Paper B3 at an NTO ....................................................................................... 20 3.17 Scenario 16: Automatic Allocation of Incoming Payments and Credits ....................... 20

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3.18 Scenario 17: Commercial Clients Making a Payment to CBSA via Electronic Data Interchange (EDI) 820 ................................................................................................................. 23 3.19 Scenario 18: Payment Methods .......................................................................................... 24 3.19.1 Payments on the Importer DN .................................................................................................................. 26 3.19.2 Payments on the Broker DN ...................................................................................................................... 26

3.20 Scenario 19: Payables on the Importer and Broker SOA ................................................ 28 3.21 Scenario 20: Importer and Broker DN and SOA Differences ......................................... 29 3.22 Scenario 21: Importer NSF Cheque Process ..................................................................... 33 3.23 Scenario 22: Broker NSF Cheque Process ......................................................................... 33 3.23.1 NSF Broker Payment of Two Importer Accounts .................................................................................... 34

3.24 Scenario 23: Late Accounting ............................................................................................. 39 3.25 Scenario 24: Offset/Disbursements .................................................................................. 39 3.25.1 Unapplied Residual Credit Forwarded to the Following Month's SOA ................................................. 40

3.26 Scenario 25a: B2 Credit Adjustment Request .................................................................. 41 3.27 Scenario 25b: B2-1 AR < 7.50 Remission Order............................................................... 41 3.28 Scenario 26: Partial Payment and B2 Credit Post SOA ................................................... 42 3.29 Scenario 27: B2-1 (DAS): Credit Sent to the Broker When Field Ten is Filled ............. 42 3.30 Scenario 28: B2-1 (DAS) - Broker Submits B3/CBSA Generates DAS............................ 43 3.31 Scenario 29: B2-1 (DAS) - No Broker Involved ................................................................ 43 3.32 Scenario 30: Duplicate Payment Recovery Process ........................................................ 44 3.33 Scenario 31: B2-1 (DAS) - 2 Brokers Involved / DNs and SOAs ..................................... 44 3.34 Scenario 32: Importer Transactions with Wrong Broker .............................................. 47 3.35 Scenario 33a: Broker's Transaction Appear on Another Broker's Account - CBSA Error ............................................................................................................................................... 47 3.36 Scenario 33b: Importer's Transaction Appears on Another Importer's Account CBSA Error ..................................................................................................................................... 48 3.37 Scenario 34: Importer's Transaction Appears on Another Importer's Account Broker Error.................................................................................................................................. 50 3.38 Scenario 35: GST Option...................................................................................................... 51 3.39 Scenario 36: Clarification of Importer/Broker Payments Clearing in the Importer's Account Under GST Option .......................................................................................................... 52

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3.40 Scenario 37: Importer Direct Security (IDS) Option ....................................................... 53 3.41 Scenario 38a: CLVS posting................................................................................................. 53 3.42 Scenario 38b: CLVS Client Refund Where a B3 is for a Single Importer ....................... 54 3.43 Scenario 38c: CLVS Where B3 for a Full Consolidation / Multiple Importers ............. 55 3.44 Scenario 38d: CLVS Client Refund (B2-1) With B3 for a Full Consolidation / Multiple Importers ....................................................................................................................................... 56

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Preface The purpose of this document is to augment the implementation guides (ECCRDS) and provide clarity on future state business processes when transacting with the Canada Border Services Agency (CBSA). This document is intended to be used by current recipients of the K84 daily and monthly statements to support the transition from the K84 to the new enhanced Daily Notices and Statements of Account. It contains ARL’s basic concepts and demonstrates the future state of business processes post ARL go-live.

Note: This document is intended for use as a reference guide only. It does not supersede any other administrative, policy, or legislative instrument.

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1. DOCUMENT INTENT This manual explains the information that is included in daily notices (DNs) and statements of account (SOAs), and the manner in which this information generated. This document, which is relevant to both customs brokers and importers, describes the differences between custom broker and importer statements, and the manner in which transactions posted to importer accounts appear on the statements. This document also includes numerous scenarios, developed in response to client questions, which demonstrate how a variety of processes in the system work and affect their account and statement. This document is not intended to provide information on the technical specifications of these statements, which are available in XML, CADEX and UN/EDIFACT. Persons seeking information about the data structure and transmission specifications for daily notices and statements of account should consult the Electronic Commerce Client Requirements Document (ECCRD) for the desired format. ECCRDs are available from the Technical Commercial Client Unit (TCCU) at [email protected].

2. ACCOUNTS RECEIVABLE LEDGER BASIC CONCEPTS 2.1 Client Accounts The importer account is the true client account in the Accounts Receivable Ledger (ARL). The importer account contains all transactions (invoices, payments, interest charges, penalties, refund amounts, etc.) associated with a BN15. The importer statement of account (SOA) is the all-inclusive statement and will reflect the true amount owing to the CBSA.

2.2 Brokers vs. Importers An importer will have an account for every BN15 associated with their BN9. Daily notices (DN) and SOAs will be generated for all importers that have their own Account Security (ASEC) and who have had recent activities in their account. Both the DN and SOA will be produced at the BN15 level. Brokers may have both broker accounts and import accounts (BN15s) linked to their BN9. The broker account is used to make payments to their client’s accounts (other importer accounts). The payment flows in and out of the broker account and is immediately transferred to the specified importer accounts. The DN and SOA will be produced at the BN9 level for brokers. Brokers that are also importers will receive a combined importer/broker DN. However, they will receive an importer SOA per BN15, and one broker SOA (for all their ASECs). 2.2.1 Importer DN and SOA The importer DN is a log of daily activities in their account. The importer SOA is snapshot of the importer account at the BN15 level at a given point in time. The importer SOA will show all transactions on the account regardless of whether or not the transactions are associated with a broker ASEC. A broker who also has an importation account will receive a separate DN and SOA for each of their importation accounts.

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2.2.2 Broker DN and SOA The broker DN is a log of importer transactions that occurred the previous day and that are associated with their broker ASECs; the broker SOA is a log of importer transactions that occurred during the previous billing cycle and are associated with all of the broker's ASECs. Both the broker DN and SOA will have a section for each of the broker's clients and a section for their broker account as long as there was activity on these accounts. The only time transactions should show on a broker account is if the broker themselves incurred an NSF or other miscellaneous charge. Payments made by an importer to his own account and that cleared a transaction associated with a broker ASEC will not appear on the broker’s DN or SOA. Payments made by a broker to one of their client accounts will only clear transactions on the importer account that are associated with one of the broker’s ASECs. B3s and B2-1s will always be linked to a broker ASEC if there was broker involvement, whereas K23s, K32s and K9s may or may not be linked to a broker ASEC, even if there was broker involvement. NPAs are never associated with an ASEC and therefore will not be linked to a broker and will never appear on the broker DN or SOA unless the NPA is issued to the broker. Broker payments will not clear NPAs on their client’s importer accounts. 2.2.3 Broker vs Importer Account Structure and the Generation of the SOA/DN Figure 2.2.3.1 shows the importer versus the broker accounts and illustrates how our system is setup and how the importer statements and broker statements are generated.

Figure 2.2.3.1 – Importer and Broker Statement Generation

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2.2.4 Broker Payments to Client Accounts A broker instructing CBSA to pay an importer account results in a credit on the importer account. Credits on importer accounts are credits to the importer and cannot be refunded to the broker by CBSA (with the exception of B2-1 APs where the credit is on the importer account but the cheque is mailed to the broker if requested). Broker payments to an importer account will only clear transactions that are associated to any of the broker’s ASECs. Debits on importer accounts are ultimately the importers’ responsibility to pay. Figure 2.2.4.1 shows how the payments resulting from broker instructions flow into importer accounts where ultimately all transactions are posted.

Figure 2.2.4.1 – Broker Instructions and Importer Accounts

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1. 2.3 DN and SOA delivery Importer statements will be sent by EDI to all EDI-enabled ASEC importers. EDI-enabled ASEC importers are those who have their own EDI connection, a broker EDI connection, or a third-party EDI connection. Brokers and ASEC importers who are not EDI-enabled can request a copy of their statements from an ARL office (ondemand). Non-ASEC RPPP clients will not be issued an importer SOA or DN. However, they can request to verify their importer account at any given point in time at any ARL office. Table 2.3.1 describes the importer vs. broker statements strategy.

Brokers • Broker DN/SOA • Importer DN/SOA if BN15 for importation • EDI if EDI-enabled • Print if not EDI-enabled

ASEC Importers

Non-ASEC RPPP importers

• Importer DN/SOA • EDI if EDI- enabled (own connection or connection through Broker or third-party service provider) • Print if not EDI-enabled

• Possibility to view client account in ARL office • No DN/SOA

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3. Scenarios 3.1 Scenario 1: Weekend/Holiday Posting/Clearing

The account is in good standing.

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3.2 Scenario 2: Partial Payment

The account is underpaid by $50, interest will be calculated.

3.3 Scenario 3: Interim Payment

The account is in good standing.

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3.4 Scenario 4: AMPS With No Review

The interest run occurs prior to the running of the SOA on the 25th. No interest appears on the DN.

3.5 Scenario 5: AMPS clearing

The account is in good standing in this case.

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3.6 Scenario 6: AMPS Correction in Same Period

The account is in good standing.

3.7 Scenario 7: AMPS Redress in Subsequent Period

The account is in good standing.

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3.8 Scenario 8: Late Accounting Penalty

The account is in good standing.

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Appeals Correspondence Type

Paid or Secured Appeal of B2-1***

Decision – B2-1 AP

Decision – B2-1 AR

Importer DN

“Under Review” section once until decision rendered

“Transactions” section the next day only ** New B2-1 AP credit document

“Other Transactions” section

Importer SOA

“Under Review” section until decision rendered

“Transactions” section included in daily total **

“Other Transactions” section

Broker DN*

“Under Review” section of Importer (once until decision rendered)

“Transactions” of Importer section the next day only **

“Other Transactions” section

Broker SOA*

“Under Review” of importer section until decision rendered

“Transactions” of Importer section included in daily total**

“Other Transactions” section of importer

Table 3.8.1 -B2-1 Appeal Scenarios

* If appeal is identified with a broker ASEC ** Cheque will be mailed to the broker if indicator is selected and included in the refund field of the B2 ***B2-1 document number will remain the same as it moves from “under review” to “Transactions” or “Other transactions” section

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Correspondence Type

K23, NPA, K32

K9

Decision – Credit/Refund

Decision – Receivable

Importer DN

“Under Review” section once until decision rendered

Not on the Daily Notice

“Transactions” section the next day only

NPA “Other Transactions” section

“Under Review” section until decision rendered

“Under Review” section until decision rendered

“Transactions” section included in daily total

NPA “Other Transactions”

Importer SOA

K23 and K32 “Transactions” section

K23, K32 and K9 “Transactions” section

Table 3.8.2 - Other Appealed Transactions

3.9 Scenario 9a: Appealed Without Broker ASEC Prior to SOA

The account is still in good standing; however interest will be incurred if the appeal is unsuccessful.

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3.10 Scenario 9b: Appealed With Broker ASEC prior to SOA

Interest will be incurred if the appeal is not successful.

3.11 Scenario 10: Appealed Without Broker ASEC Post SOA

No interest will be incurred as the B2-1 was paid.

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3.12 Scenario 11: Interest in the Case of Lost Appeal

The account is in good standing.

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3.13 Scenario 12: Appeal Granted for Importer, B2-1 Secured Late

The account is in good standing; however, interest will be calculated because they were late securing.

3.14 Scenario 13: Cash B3s Scenario:    

A 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 type C). Payment for the B3 is received by the CBSA.

Outcome:    

The CBSA will provide the client with a K21 Cash Receipt. Cash B3 do not display on the DN or SOA. Clients (with or without RPP privileges) may request a printout of their account balance. This printout is not the same as the DN or SOA; this account balance will display all transactions in the client account A cash payment for a type C B3 is blocked from the clearing process until the B3 accounting data is received through the CCS/ARL interface.

3.15 Scenario 14: Override 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.

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•

The broker or importer files an override request including supporting documentation, as per Memorandum D17-2-3 & D17-1-5, par 76-88. These D-Memos will be updated to reflect new procedures following ARL implementation.

Outcome:   

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. The new debit will have the same due date as the original B3 that was posted in error. 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.

ACOR Entered and Processed in CCS

ACOR Received and Posted in ARL

Daily Notice with ACOR correction

Statement of Account with ACOR correction

Payments / Interest Calculated

23rd day –Month 1 (current billing cycle)

23rd

24th day – Month 1 (current billing cycle)

25th day –Month 1 (current billing cycle)

ACOR will be part of Month 1 - SOA ‘Total Payable’ amount and no interest calculated

24th day – Month 1 (current billing cycle)

24th

25th day – Month 1 (current billing cycle)

25th day –Month 1 (current billing cycle)

ACOR will be part of Month 1 - SOA ‘Total Payable’ amount and no interest calculated

25th to 29th days of Month 1 (next billing cycle)

25th to 29th

Next day following 25th day – Month ARL entry day – 2 (next billing Month 1 cycle)

ACOR will be part of Month 2 - SOA ‘Total Payable’ amount. Payment for corrected amount is still due for month 1

Last Business day of Month 1

Last Business day of month 1

Next day following 25th day – Month ARL entry day – 2 (next billing possibly Month 2 cycle)

ACOR will be part of Month 2 - SOA ‘Total Payable’

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ACOR Entered and Processed in CCS

ACOR Received and Posted in ARL

Daily Notice with ACOR correction

Statement of Account with ACOR correction

Payments / Interest Calculated amount. Payment for corrected amount is still due for month 1

Table 3.15.1 - Override on DN and SOA

If the amount is not corrected until the following month, CBSA will have to reverse the interest.

3.16 Scenario 15: Paper B3 at an NTO Scenario:    

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.

Outcome:   

  

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.

This also applies to any transactions that do not appear on an SOA. The payment due date to take into consideration is always the payment due date on the transaction if the transaction is not on the SOA. 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.

3.17 Scenario 16: Automatic Allocation of Incoming Payments and Credits The payment allocation process will run twice at the end of the month. The first time will be right before the statement of account is generated. The money cleared will be the payments for the debts that were due

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throughout the billing cycle (mainly B2-1’s and NPA’s). The second time the clearing process will run is at the end of the month which will clear the payments for the B3’s that are due at the end of the month. The allocation process will match incoming payments and credits with outstanding transactions that are due based on the following rules:     

Only transactions that are ‘due’ will be reviewed for clearing with incoming payments and credits. If a transaction is not due, it will be ignored for allocation purposes. Secured B2-1 Transactions in the “Under Review” section of the DN/SOA will be excluded from the allocation process. In the importer account, broker payments and credits will be used to clear only the debits associated to any of that particular broker’s ASECs . Importer payments or credits will first be used to clear debits with no broker involvement. Then, if an importer payment or credit is still available, it will be used to clear debits with broker involvement. The automatic allocation will not be used if a payment is made for a specific transaction. In this case, the payment will be allocated directly to the transaction. To be able to pay for a specific transaction, the importers will have to make the payment at a CBSA office.

Below are 2 examples of times where specified payment in the office may be required: 



If an importer wants to appeal a B2-1, it must be paid or be secured before being appealed (it is advisable to pay penalties before starting the appeal). If an importer wants to start the appeal process right away rather than wait until the end of the month when the payment on the transaction will clear, they have the option of making the payment on the transaction that they plan to appeal in the office. The payment will clear immediately and they will be able to start the appeal process. Clients cannot file a new B2 (for a B3) if they already have a B2-1 for the same B3 that has not been paid or secured. In order to file the new B2, the client can pay the B2-1 using the specified payment option at a CBSA office.

The allocation process will match incoming payments and credits with outstanding transactions that are due based on the following priority:     

Dishonoured payments fee (NSF) of $25 and other various charges; Administrative K23 invoice charges; Penalties (K9, LAP and NPA) Interest Charges for Overdue Amounts Transactions B3, B2-1 AR (unless they are under appeal)

In addition to the above, the due date and the creation date of the document will also be used to determine which document will be cleared first. For example, if two B3 documents need to be cleared, the one with the oldest due date will be selected first. If both have the same due date, the one that was created first will be selected.

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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.

Broker Payments for Two Importers

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Broker Short-Pays

Importer #1 account’s ASEC1 transactions underpaid by $20

Importer Payment

All importer transactions cleared. Importer credit also cleared one broker transaction

3.18 Scenario 17: Commercial Clients Making a Payment to CBSA via Electronic Data Interchange (EDI) 820 Scenario: 

A commercial Client (broker or importer) transmits an EDI 820 message or arranges with their Financial Institution (FI) to initiate a CBSA electronic payment. The file contains the payment details and the broker’s and/or importer’s account.

Outcome: 

  

The FI then removes the funds from the CBSA commercial client’s bank account, creates a deposit at the Bank of Canada (BOC) and sends an EDI 821 Bank Statement to PWGSC-GBS. In addition, the FI also forward the 820 to the CBSA system (B2B.) The BOC receives the funds from the FI and creates and transfers an electronic confirmation for the value of the deposits to PWGSC Government Banking System (GBS.) FIs generate a confirmation of payment completed (824 Application Advice and 997 Acknowledgement.) The CBSA System receives and decrypts the transformed payment details file; a unique payment identification number will be assigned for each payment.

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  

CBSA ARL will post the amount(s) to their respective account(s.) Depending on the EDI file content, amounts are posted to the broker’s and/or importer’s accounts Clearing transactions will be automatically done using the CBSA pre-defined payment allocation rules. CBSA reconciles with GBS.

Figure Error! No text of specified style in document..1 - Conceptual EDI payment Design

3.19 Scenario 18: Payment Methods Importers and/or brokers will remit their payment electronically or in person during the month. The payment will be due by the last business day of the month in which the Statement of Account (SOA) is generated. Payment can be made as following:  By EDI-820: A broker arranges with their Financial Institution (FI) to transfer a total amount into CBSA’s account. Payment will be transferred to CBSA’s account by EDI-820 compliant interface. The amount may consist of multiple line items, each at importer Contract Account level. Once the payment file has been received by the CBSA in ARL, the original global payment is recorded on the account (broker). Depending on details provided in the interface file, this global amount is then redistributed to the importers’ accounts as per the line items in the EDI file. * Brokers

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will not be able to pay with a cheque at a CBSA office and then submit the payment instructions via EDI; this will not be accepted by the Banks.  By Wire Transfer: Payments by CBSA non-resident commercial client not dealing with a Canadian FI, has registered to the CARM Commercial program and is the owner of a valid client BN account. CBSA has provided the wire transfer client information on the CBSA Internet Web Site. The Cash reconciliation clerk/supervisor will have a valid username and password to access the ScotiaConnect website where the wire transfer details will be posted. Every Foreign FI will have a unique SWIFT BIC code.  By Bank Remitted Payment: The CBSA commercial client is registered to the CARM Commercial Program, and must: 

Be a CSA Client or



The payment is in excess of $25 Million.

The CBSA commercial client will make a payment to the FI using a paper bank remittance voucher provided by a CBSA office.  Through a CBSA office using a combination of cash, cheque, debit card and credit card: 



The broker provides a payment using a combination of cash, cheque, debit card and credit card, for a total amount to be paid on the broker Account: o

If the payment is to be made on broker’s account, the BSO or Cashier will retrieve the broker Account in ARL and post the amount.

o

If a payment is to be made by broker on behalf of one or multiple importers, the broker provides a cheque payment with a detailed list of client accounts (BN15) and amounts. The BSO or Cashier will retrieve the broker account in ARL and post the paid amount, broken down per importer as per broker’s instructions.

The BSO or cashier will generate a Cash Receipt for the amount in the name of the payer.

Clearing transactions will be automatically done using the CBSA pre-defined payment allocation rules (scenario 16). In order to clear only the transactions related to a specific broker, ARL will identify broker involvement by the ASEC in the document number of the invoice. Broker payments will clear transactions associated to any of their ASECs. Note: 

Brokers and importers may provide interim payments at any time.

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 

Payments can be made at RM level only and the system will not transfer or offset payments between RM accounts. If broker instructions within an EDI-820 file contain an invalid client contract account (BN15) for either party, that portion of the payment will go to a suspense account and the broker will be contacted so the payment can be transferred to the correct BN15. 3.19.1 Payments on the Importer DN

An importer DN will show the sum of all payments the CBSA has received on this ‘Transactions’ day, for this particular account in the ‘Payments Received’ field on the DN header. ‘Payments Received’ sum excludes the following payment types;  

Cash B3 payments Payment made and reserved against a B2 adjustment request (B2-1 non-existent at the time). This scenario is when a client submits a B2 and provides payment for that B2 in order to stop the interest clock. The B2-1 will be assessed and received from CCS at a later date. All payment types (cash desk, electronic, wire transfer, bank remitted) will be tracked and included in the payment received amount. ‘Payments received’ consists of:  

Payments applied to specific transaction and cleared immediately Payments posted on client account (by client himself or by broker) but not assigned to individual transactions until the automatic clearing with allocation rules occurs at the end of the billing cycle. 3.19.2 Payments on the Broker DN

The broker DN will show the sum of all payments the CBSA has received from the broker on this ‘Transactions’ day in the ‘Payments Received’ field on the DN header.

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A further breakdown of Total Payments allocated to importer accounts (as per broker instructions received by CBSA) on this ‘Transactions’ day will appear in the ‘Payments Received’ field of respective importer sections of the DN. The amount of the broker ‘s payment will match the total of importer subdivided payments. ‘Payments Received’ field on both DN header and importer section excludes the following payment types;  Cash B3 payments  Payment reserved against a B2-1 *NSF amounts will reduce the payments received value All payment types (cash desk, electronic, wire transfer, bank remitted) made by the broker will be tracked for calculating the final amount. Brokers can make specified payments at a CBSA office on behalf of their clients using the clients BN15 only (no broker involvement). This will allow brokers to pay items that are not associated with their ASEC (i.e. AMPS, INT). This payment will not show up on the broker’s DN/SOA, it will only appear on the importers DN/SOA. If later the payment is returned NSF, the NSF charge and the returned amount will be applied to the importer’s account. ‘Payments Received’ is the amount posted on the broker account (and involved importer accounts) and should not be considered applied against individual transactions until the automatic clearing occurs at the end of the billing cycle. Payments submitted from importers directly to CBSA will not appear on the broker’s DN, even if the transaction was processed through the broker.

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3.19.3 Payments on Importer and Broker SOA Payments on importer and broker SOAs are processed in the following manner: 

    





Payment on an importer SOA will be the sum of all payments the CBSA has received for the respective account between 2 consecutive SOA periods i.e. since 25th day of a given month until 24th day of the following month. Payments made by the importer and broker (on behalf of importer) within the billing cycle (25th to 24th) will appear combined in ‘Payments since last SOA’ field of the importer SOA. Cash B3 payments will not be included in ‘Payments since last SOA’ amount. Payments from all media (cash desk, electronic, wire transfer, bank remitted) will be tracked and included in the 'Payments Received' amount. Payments on an importer SOA only appear in the header section and not as a transaction. Payment received is the amount posted on the importer account in ARL and should not be considered as applied against individual transactions until the automatic clearing occurs at the end of the billing cycle, except for the specified payments an importer can make in the office. Importer payments will not appear on the broker SOA. Brokers will only see ‘Total Payable’ per importer and the ‘Payment Due Date’ on their SOA for each importer served during a specific billing cycle. However, the ‘Total Payable’ field does not include payments made during the billing period except in the following case. If a transaction appearing in the 'Other Transactions' section of a broker SOA has been paid by the importer (a B2-1 AR for instance), then this payment will reduce the ‘Other Charges(new)’ field amount on the Broker SOA; this will then reduce the ‘Total Payable’ amount.

3.20 Scenario 19: Payables on the Importer and Broker SOA On the importer SOA the "Total Payable" amount is the sum of the "Unpaid Balance Forward", the "Arrears Interest", "Transactions" and "Other Charges(new)”.

Figure 3.20.1 - Importer SOA Total Payable

Whereas on the broker SOA the"Total Payable" amount in the importer sub section is the sum of the importer "Transactions" and "Other Charges(new)” processed using broker ASEC. The Transactions amount will always be a match of the DN summaries, however, the ‘Other Charges(new)’ amount will reflect an up-to-date value as of the SOA issue date.

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Figure 3.20.2 - Broker SOA Total Payable per Account

The "Total Payable" amount on the broker SOA may not match the "Total Payable" amount on the importer SOA for the same billing cycle due to the fact that the amounts on the broker SOA are only comprised of transactions using the broker’s ASECs and payments received during the billing period do not reduce the total payable.

3.21 Scenario 20: Importer and Broker DN and SOA Differences This section highlights the key differences between the importer and broker DN and SOA format and content. SOAs and DNs will be generated for importers who have their own ASEC (Non-ASEC importers will not receive DNs and SOAs). For the benefit of clients receiving these statements, reference to importer statements will continue throughout the document. Key elements to note are:  Information included in the report Header section.  Statuses for ‘Other and Under Review’ transactions will no longer appear on the DN but will be shown on the SOA only.  Different transaction types among 'Transactions' section, 'Other Transactions' section and 'Under Review' section. Note that any transaction having a different due date than the SOA due date will never appear in the 'Transactions' section.  Definitions of various terminologies appearing on the reports are explained in the Footer section.  Financial information in the summary section of importer Statement of Account.  A broker will see all his/her own importations in a separate section on the broker DN (listed under his/her BN15 Number) regardless of what ASEC they were associated with. Transactions from this section of broker DN are same as they appear on his/her individual importer DN. This is in contrast to the other individual importer sections on the broker DN, which will only contain importer transactions related to any of the recipient broker’s ASECs.  Transactions in ‘Transactions’ section appear once daily whereas transactions in ‘Other Transactions’ section will continue to appear until they are fully paid and cleared.  The ‘Under Review’ section of DN and SOA will appear as a section only on PDF format. EDI transmission file will show under review transactions marked with an ‘x’ identifier.

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Importer Broker

Daily Notice Other Transactions

Header

Transactions

Legal Entity Name Importer BN15 Report Date Payments Received (amount posted on the importer account from broker or from himself) Refund issued to the importer

B3 Assessment LAP Late Accounting Penalty B2-1 AP DAS K32 Drawback

B2-1 AR DAS NPA Notice of Penalty Assessment K23 Miscellaneous Invoice NSF Fee (cheque is returned NFS) Transactions have individual due dates They will continue to appear until fully paid and cleared

Importer appealed transactions (B2-1, NPA, K32) to appear once

Legal Entity Name Broker BN9 Report Date Payments Received (amount posted on the broker ASEC account) Refund issued to the broker

B3 Assessment LAP Late Accounting Penalty B2-1 AP DAS K32 Drawback (all if related to broker ASEC or directly on broker import account)

B2-1 AR if broker involved NPA issued to broker in his import section of the DN

B2-1 AP and AR DAS Appealed involving a broker B2-1 AP and AR DAS Appealed by broker - on his own import account NPA issued to and appealed by broker K32 issued by and appealed by broker K32 issued by importer involving a broker and appealed All appealed transaction will appear once

Individual importer sections with each importer BN15 and payment amount allocated to each importer account.

K23 Miscellaneous Invoice if broker involved NSF Fee Transactions have individual due dates

Under Review

One broker ASEC section with NSF charge (if any) Individual broker import section with their own BN15 containing all transactions under his account including K23s, etc.)

Table 3.21.2 - Contents of Importer vs Broker Daily Notice

The following text appears in the footer of the importer and broker DN: This Daily Notice reflects transactions posted for the date specified. Le présent avis quotidien reflète les transactions comptabilisées à la date spécifiée. "Payments received" in the header section is the sum of payments the CBSA has received from this broker minus returns stemming from NSF payments, on this "Transactions" day. Note: Payments for Cash B3s and payments reserved against a B2 adjustment request are excluded from this line. "Paiements reçus" est la somme des paiements reçus par l'ASFC moins les retours provenant des paiements sans provisions, en cette journée de "Transactions", pour ce compte spécifique. Note: Les paiements en argent comptant pour les B3 et les paiements réservés pour une demande de rajustement B2 sont exclus de cette ligne. "Refund" is the amount of refund issued to this broker (does not include any offsets) on this "Transactions" day. "Remboursement" est le montant de remboursement émis à ce courtier (n'inclut pas les compensations) en cette journée de "Transactions".

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Importer

Statement of Account Header

Transactions

Legal Entity Name Importer BN15

Summary Totals for each DN issued during the billing cycle

Summary Section: SOA Date Payment Due Date Previous SOA Balance Payment since last SOA Refund Unpaid Balance Forward Arrears Interest Transactions Other Charges (new) Total Payable

Each row represents one DN summary by date

Broker

Legal Entity Name Broker BN9 SOA Date Payment Due Date

Grand Total of all summary totals. This amount matches the Transactions amount in Summary section

Individual importer section with importer BN15 for each importer. This section contains totals for each transaction day, other new charges, and a total payable Broker's own importations section with his legal name and BN15 (summarized for each day during the billing period), other transactions under his BN15, total payable Broker's NSF charges using his broker ASEC account (if applicable)

Other Transactions B2-1 AR DAS NPA Notice of Penalty Assessment K9 Ascertained Forfeiture K23 Miscellaneous Invoice NSF Fee Transactions have individual due dates They will continue to appear until fully paid and cleared B2-1 AR DAS if broker involved NPA issued to broker in his import section of the DN K23 Miscellaneous Invoice if broker involved NSF Fee Transactions have individual due dates

Under Review B2-1 AP and AR, NPA, K32, K9 appealed

B2-1 AP and AR DAS Appealed - involving a broker B2-1 AP and AR DAS Appealed by broker - on his own import account NPA issued to and appealed by broker K32 issued by and appealed by broker K32 issued by importer involving a broker and appealed

Table 3.21.2- Contents of Importer vs Broker Statement of Account

The following appears in the footer of the importer SOA: A. "Unpaid Balance Forward" amount is the difference between the "Previous SOA Balance" line, the amounts paid during the reporting period and any refunds issued identified in the “Refund” line. «Solde impayé reporté»; ce montant correspond à la différence entre la ligne «Solde précédent du RC», les montants payés au cours de la période de déclaration et tous remboursements émis identifiés à la ligne «Remboursement». B. "Arrears Interest" is the Interest calculated on the unpaid balance forward as well as any interest on overdue amounts from the "Other Transactions" section. «Intérêt sur arriérés» correspond à l'intérêt calculé sur le solde impayé reporté ainsi que les intérêts sur les montants en souffrances retrouvé à la section «Autres transactions». C. "Transactions" amount is the total of the "Transactions" section of the Statement of Account. La valeur des "Transactions" est le total de la section "Transactions" de ce relevé de compte.

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D. "Other charges (new)" is the sum of all transactions in the "Other Transactions" section. However, if a transaction appeared in this section in a previous SOA, this transaction amount is rolled up in the Unpaid Balance Forward only. «Autres frais (nouveaux)» est la somme de toutes les transactions dans la section «autres transactions». Toutefois, si une transaction a apparu dans cette section dans un relevé de compte précédent, ce montant de la transaction est retrouvé dans la section solde impayé reporté uniquement. E. "Total Payable" is the sum of the "Unpaid Balance Forward", the "Arrears Interest", "Transactions" and "Other Charges" (A to D). Le "Montant total à payer" représente la somme du "Solde impayé reporté", des "Intérêts sur arriérés", des "Transactions" ainsi que des "Autres frais" (A à D). Payment due date: Late or no payment will result in late payment interest charges and penalties. Date d'échéance du paiement: Les soldes acquittés en retard ou le défaut de payer occasionneront des intérêts pour retard de paiement ainsi que des pénalités. You may pay your statement of account electronically, through your financial institution’s Internet or telephone banking services, through a broker or at a CBSA office. For more information about these options, visit our Web site at www.cbsa.gc.ca or contact your financial institution. Vous pouvez acquitter votre relevé de compte en ligne via le site Web de votre établissement financière ou par le biais de leur service bancaire téléphonique, par l’entremise d’un courtier ou à un bureau de l’ASFC. Pour plus d’information au sujet de ces options, visitez notre site Web au www.cbsaasfc.gc.ca ou contactez votre établissement financière.

The following appears in the footer of the broker SOA: Please note that every client account contains lines A, B & C. Veuillez noter que chaque compte client contient les lignes A, B et C. A. "Transactions" amount is the total of the "Transactions" section of the Statement of Account. La valeur des "Transactions" est le total de la section "Transactions" de ce relevé de compte. B. "Other charges (new)" is the sum of all transactions in the "Other Transactions" section. However, if a transaction appeared in this section in a previous SOA, this transaction is not included. «Autres frais (nouveaux)» est la somme de toutes les transactions dans la section «Autres transactions». Toutefois, si une transaction a apparu dans cette section dans un relevé de compte précédent, cette transaction n’est pas incluse. C. "Total Payable" is the sum of the "Transactions" and "Other Charges" (A and B). Le "Montant total à payer" représente la somme des "Transactions" ainsi que des "Autres frais" (A et B). Payment due date: Late or no payment will result in late payment interest charges and penalties. Date d'échéance du paiement: Les soldes acquittés en retard ou le défaut de payer occasionneront des intérêts pour retard de paiement ainsi que des pénalités. You may pay your statement of account electronically, through your financial institution’s Internet or telephone banking services, through a broker or at a CBSA office. For more information about these options, visit our web site at www.cbsa.gc.ca or contact your financial institution. Vous pouvez acquitter votre relevé de compte en ligne via le site Web de votre établissement financière ou par le biais de leur service bancaire téléphonique, par l’entremise d’un courtier ou à un bureau de l’ASFC. Pour plus d’information au sujet de ces options, visitez notre site Web au www.cbsaasfc.gc.ca ou contactez votre établissement financière.

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3.22 Scenario 21: 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.

3.23 Scenario 22: Broker NSF Cheque Process Scenario: 

 

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).

Outcome: 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;

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

Interest will be calculated on all accounts affected for the non or late payments.

3.23.1 NSF Broker Payment of Two Importer Accounts The following example illustrates the NSF process involving a broker. Please ignore the dates as this is test data: 

On 2015/02/04, Paula Broker made payment of $1,100.00, allocation $500.00 to Importer Ottawa, and $600.00 to Importer Toronto.

Broker DN

Broker SOA - Note that SOA dates are incorrect. This is test data.

DN Importer Ottawa 34

SOA Importer Ottawa

DN Importer Toronto

35

SOA Importer Toronto



CBSA Received NSF Cheques. Paula Broker payment of $1,100.00 is reversed.

Broker DN - Please note that this is test data. 

The Paula Broker cheque is returned NSF. Paula Broker receives an NSF charge.

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Broker SOA - Please note that this is test data.

Importer Ottawa DN 

NSF charge is considered a negative payment.

37

Importer Ottawa SOA



Importer Ottawa still owes $500.

Importer Toronto DN

Importer Toronto SOA



Importer Toronto still owes $600.

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3.24 Scenario 23: Late Accounting Scenario: 

Once commercial goods have been imported using RPPP, the broker submits a B3 on behalf of the importer after the final accounting due date.

Outcome: 

  

A late accounting penalty (LAP) is generated for the late transaction and will be on the importer DN and SOA. The LAP will also appear on the broker DN and the broker SOA. (LAP cancellation or waivers may still be done as per the current process). If a cancellation is applied, a credit will appear on the importer’s and broker’s following day DN (See example of such credit in scenario 1, third DN). Where the LAP is issued and subsequently cancelled or waived, the credit will be properly reflected on the importer and broker SOA as long as the credit is posted within the same billing period. If the cancellation is performed after the generated SOA, the credit of this same amount will be on the importer account and on the broker/importer DN of the following day and will be reflected on the following month’s SOAs.

The importer/broker has the option of paying the full SOA amount and receiving a 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.

3.25 Scenario 24: Offset/Disbursements 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);

Currently, such credits are assessed at the transaction level, authorized for refund and disbursed individually. With ARL, 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, 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. •

Note: The Government of Canada does not refund any amounts of $2 or less.

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•

Note: A client may make a request for refund of a credit amount (SOA in a credit position) of less than the set threshold.

3.25.1 Unapplied Residual Credit Forwarded to the Following Month's SOA

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3.26 Scenario 25a: B2 Credit Adjustment Request

Account in good standing ($50 credit)

3.27 Scenario 25b: B2-1 AR < 7.50 Remission Order B2-1 AR transactions that are less than $7.50 will display on the importers DN and on the broker DN when there is broker involvement. IF the amount is less than $7.50 the transaction will appear on two lines, once as a debit value and once as a credit value. The debit and credit will clear together with a net effect of zero on the client account. There is no amount due to the CBSA for this B2-1 AR.

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3.28 Scenario 26: Partial Payment and B2 Credit Post SOA

3.29 Scenario 27: B2-1 (DAS): Credit Sent to the Broker When Field Ten is Filled Scenario: 

A broker submits an Adjustment Request (B2) for a refund on a specific transaction; the B2 is assessed by the CBSA

Outcome:      

A B2-1 Detailed Adjustment Statement (DAS) is created, resulting in a refund owing to the importer A Blanket B2-1 (multiple B3s associated to B2-1) will only display the 1st B3 number with the suffix ‘m’ (multiple). Both B2-1 and attached B3 number will appear together on the DN. The B2-1 is sent to the client (same procedure as today). The B2-1 is entered into CCS and will ultimately feed ARL The B2-1 will 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 the section related to that importer) on the following day 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 If the Mail DAS to Agent field is filled with the broker’s name and address, the refund will not be available for offsetting purposes in the importer account and will be mailed to the broker. The broker’s account will not be updated with this credit. As is done today, the cheque will be issued in the name of the importer but sent to the broker. We are reverting back to the way this process is handled today.

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3.30 Scenario 28: B2-1 (DAS) - Broker Submits B3/CBSA Generates DAS Scenario: 

A B3 has been submitted by a broker where the adjustment is initiated directly by the CBSA. A B2-1 DAS is issued.

Outcome: 

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. o o

o



 

If the adjustment is a credit, the refund will be applied as an offset to the importer’s account. If the adjustment is a credit and if the Mail DAS to Agent field is filled with the broker’s name and address, the refund will not be available for offsetting purposes in the importer’s account and the refund will be mailed to the broker. 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 billing period, 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 as well as in the importer section of the broker SOA. The broker’s SOA will be broken down by client.

3.31 Scenario 29: B2-1 (DAS) - No Broker Involved Scenario:  

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.

Outcome: 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.

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As this transaction was initiated by the importer, a broker will not see this transaction appear on their DN or SOA.

3.32 Scenario 30: Duplicate Payment Recovery Process Scenario:    

“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 of $50K on “Guy & Mike’s Imports” account by submitting their payment instructions. After the broker instructs CBSA to pay a specific importer account, the amount is on the importer account and now belongs to the importer.

Outcome: An over-payment has occurred! 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. 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. Unless an emergency manual refund is requested and authorized, a refund will only be issued after offsetting. In the case where an emergency manual refund is authorized, subsequent to verification and internal authorization, the CBSA, through PWGSC, issues a refund of $50K to “Guy & Mike’s Imports”.

3.33 Scenario 31: B2-1 (DAS) - 2 Brokers Involved / DNs and SOAs Scenario:  

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).

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Outcome:  If the adjustment is a credit, the refund will be applied to the importer’s account.  If the adjustment is a credit and if the Mail DAS to Agent field is filled with the broker’s name and address, the refund will not be available for offsetting purposes in the importer’s account and the refund will be mailed to the broker.  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 billing period, 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.

Transaction Submission

Transaction type / Number

Client /

Submitted by

DN Recipient(s)

DN Date

Transaction Amount

B3

Guy & Mike’s Imports

Best Brokers Inc.

Guy & Mike’s Imp.

2014-1105

135,987.00

Guy & Mike’s Imports

Top Notch Brokers

2014-1113

(34,491.02)

Importer

Date 2014-11-04

12222783837954

2014-11-12

B2-1 12345513685368 12222783837954

Best Brokers Inc. Guy & Mike’s Imp. Top Notch Brokers

Table 3.33.3- DAS on DN

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SOA Date

SOA Recipient(s)

Transaction type / Number

Transaction Date

Transaction Amount

SOA section

Transaction Amount (on SOA)

201411-25

Guy & Mike’s Imports

B3 transaction included in DN Summary Totals

2014-11-05 DN summary date

135,987.00

‘Transactions’ DN summary line

B3 amount is part of DN Summary Totals

201411-25

Top Notch Brokers

B3 transaction included in DN Summary Totals

2014-11-05 DN summary date

135,987.00

‘Transactions’ DN summary line

B3 amount is part of DN Summary Totals

201411-25

Guy & Mike’s Imports

B2-1

2014-11-12

(34,491.02)

‘Transactions’

(34,491.02)

2014-11-12

(34,491.02)

‘Transactions’ for Guy & Mike’s

(34,491.02)

12345513685368 12222783837954

201411-25

Top Notch Brokers

B2-1 12345513685368 12222783837954

Table 3.33.2- DAS on SOA

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3.34 Scenario 32: Importer Transactions with Wrong Broker Scenario:   

An 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.

Outcome: 

 

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 on Broker B’s DN, and the amount due will form part of the importer and of Broker B’s SOA for proper payment. The CBSA will expect payment of duties & taxes on the payment due date.

3.35 Scenario 33a: Broker's Transaction Appear on Another Broker's Account CBSA Error Scenario: 

Broker (Broker 1) advises a CBSA office with ARL access of the error (i.e., the transaction belongs to a different broker (Broker 2).

Outcome:   



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 importer and the two brokers involved will see the adjustment on their respective DN’s the following day. Broker 1 will see the transaction as a credit while Broker 2 will see this transaction appear as a debit. The importer will see the credit and the debit in their account and DN the following day. 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).

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3.36 Scenario 33b: Importer's Transaction Appears on Another Importer's Account - CBSA Error Scenario: 

The 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)).

Outcome:   

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 the 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).

Table 3.36.4- Debit Correction Prior to SOA

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.

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Table 3.36.2 - Debit Correction After SOA

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” 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 March 27th DN, and reflected on the April 25th SOA. As long as “Autre Mec” Import pays the $700 by March 31ST, they would not have any interest charged. If payment is post payment due date, interest would be charged but manually reversed.

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3.37 Scenario 34: Importer's Transaction Appears on Another Importer's Account - Broker Error Scenario: • •

The 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.

Outcome: •

• • •

The broker or importer files an override request including supporting documentation, as per Memorandum D17-2-3 & D17-1-5, par 76-88. 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 the broker if applicable) will see a transaction credit 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).

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3.38 Scenario 35: GST Option Scenario: •

A broker submits a B3 on behalf of his client, coding Field 6 of the B3 with a “G” for the GST Option used. The “G” option will be available as a pre-payment code in the pre-payment field.

Outcome: • •

ARL will generate a DN of all recorded transactions to the importer/Broker on the following day. The broker’s DN will show this transaction with a « G » in the GST/IDS Option column, however, no GST amount will display.

The importer DN will show this transaction with a « G » in the GST/IDS Option column. The full amount, including the GST, will display.

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• •

•

•

The importer SOA will show a Total Payable that includes GST/IDS Option amounts. The broker’s SOA will show a Total Payable for each of their importers with transactions that billing month. These Total Payables will not include the GST/IDS Option amounts. 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

3.39 Scenario 36: Clarification of Importer/Broker Payments Clearing in the Importer's Account Under GST Option

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3.40 Scenario 37: Importer Direct Security (IDS) Option 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: 1. The broker completes the B3 and uses the importer’s own account security 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. 2. 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. Outcome: • •

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 DN and SOA.

3.41 Scenario 38a: CLVS posting 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 will be made accordingly (after offsetting).

•

Where the B2 adjustment request was made by the Courier/Broker, see Scenario #27.

•

Where an adjustment request is made by the importer, the credit will be posted to that importer account and the refund will be made accordingly (after offsetting). The B2-1 will be shown on both importer and broker DNs and SOAs.

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.

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•

ARL will post the transaction to the client account and refund accordingly (offset first; disbursement second).

•

If B2 is submitted by the courier/broker, see Scenario 27.

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.

3.42 Scenario 38b: CLVS Client Refund Where a B3 is for a Single Importer

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3.43 Scenario 38c: CLVS Where B3 for a Full Consolidation / Multiple Importers

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3.44 Scenario 38d: CLVS Client Refund (B2-1) With B3 for a Full Consolidation / Multiple Importers The importer submits a B2 for an adjustment on the F type B3:

Notes: The broker or courier will not see this B2-1 appear on their DN, since they were not involved in the adjustment. The B3 number is the reference B3 created to extract this importer’s portion of the consolidated B3.

After assessment from the CBSA, a B2-1 is issued and posted to the importer account.

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