Commercial payments and accounts
Resources

This bulletin is to remind importers of the provisions in D-Memorandum D17-5-1 about making payments to CBSA. The memorandum aims to streamline the payment process in preparation for CARM R2, and to leverage the benefits of electronic payment methods:

• each RM account must be paid separately
• payments over $50,000 are to be made electronically
• electronic payments are strongly encouraged, however, the CBSA will continue to accept cheques for payments under $50,000 until CARM R2 is implemented
• importers under the GST Direct Payment Option or Importer Direct Security Option are required to make the payment directly to the CBSA as outlined in D-Memorandum D17-5-1 and Bulletin 60
• the CBSA strongly encourages importers to register to the CARM Client Portal and to use the electronic methods of payment detailed in D-Memorandum D17-5-1

If you have questions about this bulletin, complete the client support contact form.

Please be advised that the Daily Notice (DN) will not be produced on Saturday May 22, 2021. This is as a result of the ARL system shutdown to implement CARM Release 1.

Transactions from Friday, May 21, 2021 will be on the DN of Tuesday, May 25, 2021.

On Friday, May 21, 2021, the last DN prior to the system shutdown will be delivered.

Regularly scheduled DNs are expected to resume on Wednesday, May 26, 2021. They will include all transactions for Saturday, May 22, 2021 through Tuesday, May 25, 2021.

There should be no delay to the Statement of Account (SOA) delivered on Tuesday, May 25, 2021.

Any questions can be sent to ARL Support before Tuesday, May 25, 2021.

As of Tuesday, May 25, 2021 at 7:00 am Eastern standard time, inquiries can be sent via the Contact Us web form: https://www.cbsa-asfc.gc.ca/contact/csform-formulairesc-eng.html.

There may be a delay in response times. We apologize for any inconvenience this may cause. Thank you for your patience and continued support.

Contact ARL Support for questions about this bulletin.

Please be advised that Daily Notices (DN) will not be produced Friday, January 15 and Saturday, January 16, 2021 to allow for the ARL system shutdown to implement CARM Release 0.

On Thursday, January 14, 2021, the last DN prior to system shutdown will be delivered.

On Monday, January 18, 2021, DNs will resume once CARM Release 0 goes live. On that day, a special DN will be produced containing all transactions from Thursday, January 14 and Friday, January 15, 2021, inclusively.

Transactions from Saturday, January 16 through Monday, January 18, 2021 will appear on the DN of Tuesday, January 19, 2021, as per usual. Subsequent DNs will return as per the regular schedule.

All questions related to this issue should be forwarded to the CARM mailbox at: cbsa-asfc_carm.gcra@cbsa-asfc.gc.ca. Please note that there may be a delay in response times, as the ARL team works through a backlog of inquiries from the shutdown period.

We apologize for any inconvenience this may cause. Thank you for your patience and continued support.

Any questions regarding this bulletin should be directed to ARL Support.

Further to the announcement made by the Prime Minister on March 27, 2020, the Government of Canada has extended the payment period for GST and customs duties. During this time, there has been an increase of importers joining the GST Direct Payment Option or the Importer Direct Security Option.

Brokers must ensure that they advise importers of their balance due to the CBSA, as they may not have access to their Statements of Accounts (SOA). Note that importer and broker SOAs contain different information. For more details, consult Bulletin #56.

All transactions entered on the B3 Canada Custom Coding Form should be correctly submitted. This will prevent the amount owing from appearing on the customs broker's SOA and will create a payment liability to the customs broker.

When entering transactions, ensure that:

• if an importer is on the GST Direct Payment Option, field 6 on the B3 must indicate a "G"
• if an importer is on the Importer Direct Security Option, field 6 on the B3 must indicate an "I"

Clients who participate in the GST Direct Payment Option program will have their total payable on their SOA based on the field 6 filing on the transaction.

Failure to accurately report the "G" or "I" indicator on Form B3 may result in the liability deferral not being applied, and the liability will remain with the customs broker.

Broker Statement

The Broker Statement will identify the importer responsibilities in Line J: Past Period Transactions (Open) and in Line K: Current Period Transactions. These transactions are dependant on accurate reporting in field 6 on the Form B3.

Importer Statement

The Importer Statement identifies the amounts owing to the CBSA in Line I: Importer Total Payable and the amount owing to the customs broker in Line J: Broker Total Payable. These amounts are dependant on the coding of field 6 on the Form B3.

If the importer is not a GST Direct Payment Option or Importer Direct Security Option participant, the B3 is secured by the customs broker's bond.  In this case, Line I: Importer Total Payable would be 0.00 (if there are no outstanding “Non-B3 Debt” nor “Interest Total” amounts) and the full amount owing would be in Line J: Broker Total Payable. This is what is owed to the customs broker.

The recovery of these amounts is taken care of between the customs broker and the importer, and should be handled directly with the importer.

For more information on the GST Direct Payment Option and the Importer Direct Security Options, visit the Departmental Memo D17-1-8, Release Prior to Payment Privilege.

For more information on payments, visit Commercial Payments and Accounts.
Contact ARL Support with any questions or concerns.

Importers have 4 ways to pay the CBSA for the duties and taxes on their goods:

1. Paying in full at time of importation: Payment is provided with the account documentation at time of importation.
2. Customs broker services: A customs broker posts security with the CBSA, and duties and taxes are paid after the goods have been imported. This security ensures the payment of duties and taxes to the CBSA. Importer payments flow to the CBSA through their customs brokers.
3. GST Direct Payment Option: Also known as the “G” program, this is an agreement between the customs broker and importer. The customs broker provides security for duties and taxes (such as excise tax or customs duties) excluding the GST. The importer pays the GST to the CBSA and pays duties and taxes to the customs broker. The customs broker then remits those funds to the CBSA, removing their liability against their security.
4. Importer Direct Security Option: With the assistance of a customs broker, an importer can post security with the CBSA. The customs broker submits your accounting documentation, though the importer pays all duties and taxes to the CBSA.

The Importer Statement of Account (SOA) identifies what is payable to your customs broker (Line J: Broker Total) and what is payable to the CBSA (Line I: Importer Amount Payable).

If you are not a GST Direct Payment Option or Importer Direct Security Option participant, the liability is secured by the customs broker's bond. In this case, Line I would be $0.00 (if there are no outstanding “non-B3 debt” or “Interest total” amounts) and the amount owing to the customs broker would be included in Line J.

For more information, visit Commercial Payments and Accounts: Payments.

Contact ARL Support with questions or concerns.

When a credit adjustment (B2) has been processed, a Detailed Adjustment Statement (DAS) is sent to the importer to advise the amount of the credit has posted to the importer account. The credit will appear on the next Statement of Account (issued on the 25^th of each month). If there is debt on the importer account, the credit will be applied to the balance outstanding and the total payable will automatically be reduced by the available credit.

Excess credits will only be refunded after offsetting occurs (the 15^th of the month following the Statement of Account) providing there is no new debt posted to the importer account. In the event debt continues to post to the account, the credit will continue to reduce the total payable until it is used in its entirety. In the event there is no new debt posted to the importer account, the credit will automatically be disbursed in the next disbursement cycle and will be reflected on the corresponding statement of account with status of disbursed.

Please consult our Disbursements and Offsetting page for more information on this process.

To inquire if the credit will be disbursed, submit a request using the Contact the ARL team page after the first of the month. Select "Receiving a disbursement cheque".

There are two scenarios that occur for the payment of B2s:

1. B2 – Detailed Adjustment Statement (DAS) issued

Importers/brokers can make a payment at the port, or they can make a payment online. If the payment is made online, the importer/broker must send their request to the ARL team and provide the BN15, B2 number(s), the amount owing on the B2, the payment amount and payment date.

2. B2 – Prepayment with no DAS issued yet

Importers/brokers must make their payment at the port. The cashiers will code the payment in ARL to identify it as a pre-paid B2. When the B2 posts to the account the payment will automatically match to it.

The following documents will behave as if they were “Importer Direct” tagged beginning with the Statement of Account (SOA) to be issued in March 2019.

• B2 (debit and credit)
• AMPS
• K32
• K23
• K9

They will remain visible on the broker SOA but excluded from the “Total Payable” by the broker.

Brokers will still be able to pay B2-debt electronically or by cheque – B2-debt status will show on the SOA.

There will be no change to:

• B3
• Broker payments
• Broker specific debts (including interest on a broker debt)

Implementation

First SOA impacted = March 2019

Application is retroactive on any open transaction.

All DN and SOA technical issues should be forwarded to the CARM mailbox at: CBSA-ASFC_CARM.GCRA@cbsa-asfc.gc.ca

Thank you for your continued support.

Outstanding account balances for transactions filed by Icecorp Logistics must be paid by the importer.

The Canada Border Services Agency (CBSA) is aware that many importers may be impacted by the sudden closure of Icecorp Logistics Inc and its Icecorp Customs Brokers division.

The CBSA has conducted a preliminary review and has generated Statements of Account (SOA) for importers who may have an outstanding account balance relating to Icecorp filed transactions. You may receive a letter in the coming days with additional information about your account.

If you have been impacted by the closure of Icecorp Logistics Inc, you can visit a CBSA port of entry to obtain a copy of your SOA and to correct importation documents that may not have been filed correctly prior to the closure of Icecorp Logistics Inc.

If you have not received a letter by December 20, 2017, or if you have question about your SOA, please contact the CARM mailbox. To accelerate and better direct your request, enter “Icecorp” as the subject line of your email.

Interim and monthly Statement of Account (SOA) commercial payments are to be made electronically or sent to the Canada Border Services Agency’s (CBSA) National Payment Processing Centre in Ottawa. Effective August 24, 2017, interim and monthly SOA payments will not be accepted at ports of entry (POE).

Context

The CBSA has completed the transition to a centralized process for monthly interim and SOA payments.

Action required

Effective August 24, 2017, customs brokers and importers who make monthly account payments, i.e. those securing goods either directly or under the Importer Direct Security Option with a customs broker, or those under the Goods and Services Tax Direct Payment Option with a customs broker, are required to remit their interim and monthly payments centrally or electronically. Monthly payments will no longer be accepted at the POEs*.

*Exceptions – the following client types can continue to pay at a POE:

• (i) Customs brokers or importers remitting payment over $25 million who have previously been pre-approved while implementing Electronic Data Interchange (EDI); and
• (ii) Importers or customs brokers paying by debit card, and
• (iii) Credit card payments under the $5,000 limit.

K23, K9 and Administrative Monetary Penalties payment processes remain unchanged.

Importers’ Cash B3 payments, B2 adjustment payments and non-commercial payments will continue to be accepted at all POEs with no change to the current process

Payment can be made electronically, through EDI, Online Banking (for importers), or by cheque/money order/bank draft, payable to the Receiver General for Canada, delivered to:

Canada Border Services Agency (CBSA)
MAILROOM
Attention:  Accounts Receivable Management Unit
333 North River Road, Place Vanier, Tower A
Ground Floor, Room 1018
Ottawa, Ontario K1A 0L8
Telephone: 343-291-5265 (for courier reference)

For the exceptions listed above, these payment types are to be accepted at the POE or ARL Payment Processing site. Payment will be processed to the account level and all relevant documents will be sent to the National Payment Processing Centre for allocation

Electronic Payment

Electronic payment to the CBSA is currently available with:

• Scotiabank
• Canadian Imperial Bank of Commerce (CIBC) - online banking only
• Toronto-Dominion Canada Trust Bank (TD)
• Bank of Montreal (BMO)
• Royal Bank of Canada (RBC)
• Citibank
• Tangerine
• Bank of America
• The National Bank

(i) EDI: Clients should contact their Financial Institution (FI) client relationship manager to inquire about setting up and testing the CBSA EDI payment capability.

(ii) Online Banking (for importers only. If applicable, it is suggested that you verify with your customs broker amounts owing directly to the CBSA): Importers are to visit their FI’s web bill payment portal and select one of the following payee names:

• CBSA Duties Taxes Fees, or
• CBSA Duties, Taxes and Fees, or
• Canada Border Services Agency, or
• Agence des Services Frontaliers du Canada, or
• CBSA Customers/ASFC Douanes.

Each financial institution has its own standard to name a payee. Importers are to use their business number (BN15, e.g. 123456789RM0001) as the account number (not the Canada Revenue Agency RT account number). To access the phone option, importers are to contact their FI for initial set-up.

A number of Non-resident importers (NRIs) operating under the Importer Direct Security Option currently make indirect payment to the Canada Borders Services Agency (CBSA) through their customs brokers.  Given the recent clarification of the liability of debt for Importer Direct Security Option clients (refer to Bulletin ARL-2017-33), this bulletin clarifies the payment options for all NRIs.

1) NRIs who are part of the CBSA's Customs Self-Assessment Program:

These NRIs will continue to make their payments as per the terms of CBSA departmental memos D23-3-1 Customs Self-Assessment for Importers and D17-1-8 Release Prior to Payment.

2) NRIs who are not on the Importer Direct Security Option with their customs broker:

These importers should continue to make their payments to their customs brokers.  If paying the CBSA directly, see payment Options below.

3) NRIs who are on the Importer Direct Security Option with their customs broker:

The purpose of the Importer Direct Security Option is to provide customs brokers a means to reduce the amount of account security they are required to post with the CBSA by ensuring that importers participating in this option remit payment directly to the CBSA.  There are three options available to NRIs to remit these payments.

Options

• Through Electronic Data Interchange or online banking with a financial institution certified by the CBSA for payment remittance.
• Sending a cheque, money order or bank draft payable to the Receiver General for Canada (with the importer Business RM Number clearly indicated), in Canadian funds, to the CBSA as follows:
  
  Canada Border Services Agency (CBSA)
  MAILROOM
  Attention:  Accounts Receivable Management Unit
  333 North River Road, Place Vanier, Tower A
  Ground Floor, Room 1018
  Ottawa, Ontario K1A 0L8
  
  Telephone: 343-291-5265 (for courier reference purposes only)
  
  Alternatively, the cheque, money order or bank draft payable to the Receiver General for Canada could be sent to the customs broker to remit to the CBSA on the NRI's behalf.
• In person at a local CBSA office by debit card or credit card.  Credit card payments are accepted for amounts less than $5,000.

NRIs on the Importer Direct Security Option with their customs brokers who fail to remit payment directly to the CBSA remain liable for their payments and any associated late payment and interest charges.

In accordance with D17-1-8, Release Prior to Payment Privilege, NRIs may not participate in the Goods and Services Tax Direct Payment Option.

For more information on the Importer Direct Security Option, please consult D17-1-8, Release Prior to Payment Privilege.

Proof of payment is required when a commercial adjustment is appealed.

Payment for a commercial adjustment that is intended to be appealed must be made in person or by mail at an ARL payment processing enabled office.

The following processes are required to ensure a commercial adjustment that is intended to be appealed is identified as paid.

If paid in person at an ARL Payment Processing Site (PPS)

• To receive a stamped Detailed Adjustment Statement (DAS) or B2 as paid, full payment must be made in person at an assigned Canada Border Services Agency (CBSA) ARL PPS (see link below for a list of ARL PPS).

If paid by mail to an ARL PPS

• Include clear instructions that identifies the specific DAS or B2 to be paid.
• Keep copies of the cheque and documentation for reference purposes, as well as the office location where the payment was mailed.
• A receipt will not be issued and the DAS or B2 will not be stamped; however, a K21 Cash Receipt will be created in the ARL system, and if a decision to appeal the DAS or B2 is made, the CBSA will be able to confirm payment.
• A copy of the K21 Cash Receipt can be obtained by visiting an ARL office.  The office where the payment was mailed to and the 15 digit business number associated with the DAS or B2 will be required.
• The K21 Cash Receipt can be printed and submitted to the CBSA's Recourse Unit as proof of payment.

Offices supporting the Accounts Receivable Ledger

Liability of debt for Goods and Services Tax (GST) Direct Payment Options and Importer Direct Security Option clients.

The purpose of the GST Direct Payment Option and the Importer Direct Security Option is to provide customs brokers a means to reduce the amount of account security they are required to post with the Canada Borders Services Agency (CBSA), by ensuring that importers participating in these options remit payment directly to the CBSA.

Under the Importer Direct Security Option, customs brokers may arrange for their clients to obtain their own release prior to payment privilege (i.e., account security number) by posting security with the CBSA.  This allows customs brokers to reduce their level of security by the importer's average monthly duties and taxes, provided the importer completes a direct security letter, authorizing the disclosure of information pertaining to their Account Security Profile.  In addition, importers agree to pay the full amount of duties and taxes directly to the CBSA by the payment due date.

Customs brokers may also place resident importers on the GST Direct Payment Option, thus allowing for a reduction in security equivalent to the importer's average monthly GST owing, provided that the importer completes the required GST letter.  The importer must agree to provide payment directly to the CBSA for the full amount of GST for all transactions processed during a billing period by the payment due date.
An importer cannot be on the Importer Direct Security Option and the GST Direct Payment Option at the same time.

If the importer is not a GST Direct Payment Option or Importer Direct Security Option participant, the liability is secured by the customs broker's bond.  In this case, the customs broker is responsible for the payment of associated duties and taxes, including the GST, owing to the CBSA.  Recovery of these amounts by a customs broker is a business to business matter between the customs broker and their client (importer) and should be handled directly with the importer.

Please ensure that all transactions entered on the B3 Canada Custom Coding Form are coded correctly upon submission.  This will prevent the amount from appearing on the customs broker's Statement of Account and triggering the liability for the payment to the customs broker.

• If an importer is on the GST Direct Payment Option, field 6 on the B3 must indicate a "G".
• If an importer is on the Importer Direct Security Option, field 6 on the B3 must indicate an "I".

Failure to accurately report the "G" or "I" indicator on the Form B3 may result in the liability deferral not being applied, thereby resulting in the liability remaining with the customs broker.

For more information on the GST Direct Payment Option and the Importer Direct Security Options, please consult Departmental Memo D17-1-8, Release Prior to Payment Privilege.

The Canada Border Services Agency's (CBSA) Administrative Business Numbers (Admin BN) should not be used by customs brokers or importers unless authorized by the CBSA.

• CBSA policy states that all commercial importers must register for a BN with an RM extension (BN15). Please refer to D-Memo, D17-1-5 for specific details.
• All commercial importers who do not have a valid BN15 must contact the Canada Revenue Agency (CRA) to obtain one, or use the services of a customs broker to attain one. The CRA's Business Registration Online is available 21 hours per day or the importer can call the CRA's Business Enquiries line at 1-800-959-5525 (E) or 1-800-959-7775 (F).
• CBSA offices will be alerted any time a CBSA Admin BN is used on release documentation. The release documentation may be rejected and a valid BN15 requested.
• If a BN needs to be validated, please contact the CRA.

With the introduction of ARL in January 2016, the Canada Border Services Agency (CBSA) has moved to an account based structure for the tracking and reconciliation of duties and taxes payable (outstanding balance) and payments received.

To allow visibility into account status for importers who do not directly receive a monthly statements of account (SOA) through electronic data interchange (EDI), the CBSA will provide an Importer Account Balance Overview Report. This report details the accounting activity, including open and cleared receivables from January 2016 to the date of request.

Details pertaining to open and/or cleared receivables are subject to change, based on account activity.

To ensure confidentiality, this report can be requested by importers only.

To obtain an Importer Account Balance Overview Report, submit your request through an email, at the legal entity level (i.e. Business Number 9 digits), to the CBSA through the CARM generic mailbox. The subject line of the email must read "Importer Account Balance Overview Report Request/<Importer BN9> (the BN of the importer requesting the report).

Upon receipt of a request, the importer will receive a consent form to be completed, signed and returned to the CBSA, and will be subsequently contacted by phone to verify company information. The following information will be required on the consent form:

• Name of the Importer
• Business number at the nine digit level
• RM account(s) number(s) for this BN9
• Importer's complete business address
• Name and contact information, including the business email and phone number, of the individual authorized to receive such information (for example, an owner, partner of a partnership, corporate director, corporate officer, or an individual with delegated authority)

An encrypted report will be sent to the importer by email. The importer will be contacted by phone to be provided a password to unlock the encrypted file.

If there are any issues receiving the report due to file size or with opening the encrypted file, the importer should contact the CARM generic mailbox using the original ticket number issued at the time of the initial request in the Subject field.

Providing guidance on making changes to your business number and import/export accounts.

All registration activities for the Business Number and import/export (RM) accounts, including making changes to or closing your account(s), can be done by contacting the Canada Revenue Agency's (CRA) Business Window at 1-800-959-5525.

Changes can be made by the business owner or by an authorized representative.

For business owners, information on making changes to your business can be found on the CRA website.

For authorized representatives, the CRA requires a business owner's consent to communicate with a representative for anything related to their business number (BN) and program accounts. Authorization can be given online using My Business Account or by mail by submitting written authorization using Form RC59, Business Consent.

An authorized representative can be an employee or a person that does not work for your business, such as a:

• lawyer
• accountant
• customs broker
• bookkeeper

You can authorize a representative to have access to all your business accounts or you can restrict access to specific accounts. With written authorization, the representative can:

• register your business
• access your accounts
• make account enquiries
• update account information

Detailed information on authorizing a representative can be found on the CRA website.

The purpose of the bulletin is to inform customs brokers of changes to their daily notices (DN).

Occasionally, B3 and B2 transactions are submitted to the Canada Border Services Agency (CBSA) with invalid importer business numbers (BN15). 

As the CBSA is unable to process these transactions to a valid importer account, they are placed in a suspense account to await correction.

The CBSA is now completing verification of account numbers on release documentation, and if found to be invalid, the documentation may be rejected.

Effective April 27, 2017, transactions in the suspense account will be displayed on the customs broker's DN with the following messaging: "CBSA account for internal use only.  Please correct before SOA issuance."

If you see this message as your importer name on your DN, correction is required of the importer BN 15 before the 25th day of the month to ensure an accurate SOA.

For instructions on how to make this correction, consult ARL Bulletin #16 - Amended – Correcting B3s Posted to the Wrong BN15, dated December 9, 2016.

Under Accounts Receivable Ledger (ARL), statements of account (SOA) are issued by the importer’s 15 digit business number (BN15) rather than the customs broker’s Account Security (ASEC), as was the former process. As a result, B3s posted to the wrong BN15 must be corrected to ensure the accuracy of importer accounts.

Trade Chain Partners (TCPs) are reminded of their responsibility under the Customs Act to provide accurate information to the Canada Border Services Agency (CBSA). Failure to do so may result in delays in releasing shipments, in addition to any applicable penalties and administrative fees.

TCPs should verify their daily notices (DNs) to ensure the information is accurate. The Agency encourages TCPs to submit their correction requests as early as possible in order to allow sufficient time for the CBSA to process them. The Agency offers this process as a service to importers/customs brokers in order to facilitate the correction of B3s posted to the wrong BN15. While the CBSA will strive to complete these corrections before the deadline, it cannot assure that this will be possible in all cases.

Procedures for BN15 correction only:

Incorrect BN15 correction request presented before the deadline (i.e., three business days prior to the payment due date):

• All correction requests must be made at the client’s central accounting office (i.e. the local office for B3 transactions based on the ASEC holder’s record, which can be found on page 3 of the completed Release and B3 Declaration Electronic Data Interchange (EDI) Application Form). The central accounting office should not be confused with the National Payment Processing Centre, where monthly and interim payments for ASEC holders are made.
• Requests can be made up to the deadline (i.e., three business days prior to the payment due date).
• The importer/customs broker must present the following documentation as part of their accounting override request for a correction to the BN15:
  • The DN data presented in a readable format;
  • An explanation of the error, including the appropriate letter of authorization as per Memorandum D17-2-3;
  • A corrected Form B3 with the same transaction number as the incorrect B3; and,
  • A copy of the accounting package, including the invoice.

Note: In the case of B3s transmitted electronically, a hard copy of the accounting package including the Form B3 and invoice must be presented when requesting a correction.

• Upon approval of the request, ARL will be updated, and the B3 will be associated with the correct BN15.

After the accounting override is processed, the B3 will be moved to the correct account in the following way and the changes will be shown on the clients' DN and SOA:

DN:

• The incorrect account will show a B3 credit with the same transaction number as the original B3, and the credit will show on the DN the day after the accounting override is processed. The correct account will show the original B3 with the same transaction number as a new debit, and this will show on the DN the day after the accounting override is processed.

SOA:

• The correction will be reflected on the SOA if the accounting override is processed before the SOA is generated.
• The SOA for the incorrect account will have the correct transactions total in the header as the debit and credit amounts will balance to zero. This assumes that the correction was made prior to the SOA being generated.
• The SOA for the correct account will have the correct transactions total in the header as the corrected B3 will be included. This assumes that the correction was made prior to the SOA being generated.
• If correction is made after the SOA but before the accounting override deadline, the SOAs will be incorrect and payment should be made based on the corrected amounts populated in the Reconciliation Exception Sheet (RES) to indicate the variation between the payment remitted and the SOA total payable.

Incorrect BN15 correction request presented after the deadline (i.e., after three business days prior to the payment due date):

• The B3 must be fully paid.
• Corrections must be made through the submission of a B2 adjustment request with a letter of explanation for the change at the CBSA Regional Trade Office, per Memorandum 17-2-1, the Coding, Submission and Processing of Form B2 Canada Customs Adjustment Request, paragraph 16.
• The legislative authority that clients should indicate on their B2 for a BN change is: 7.1 of the Customs Act - Obligation to provide accurate information.
• The rest of the B2 must be completed as follows:
  • Show the true importer's name/account number or business number and address in Field No. 1;
  • Show the CBSA office code number used on the original accounting document in Field No. 5;
  • Show the original accounting transaction number in Field No. 6;
  • Show the date of final accounting or the duty paid date of the original accounting transaction in Field No. 7;
  • Show the appropriate page number in Field No. 4; and,
  • Show the statement "importer name/account number or business number change" in the explanation field.
• These changes may not be displayed on the clients' DN or SOA.

If the broker that filed the B3 using the incorrect BN15 does not have an agency agreement with the correct importer, the B3 must be cancelled by filing a B2 and a new B3 filed by the correct broker, using the following process.

The broker that made the error must:

• Communicate with the correct customs broker/correct importer for the transaction in question so that the correct customs broker can prepare a V-type B3 with the correct customs broker's bar code in replacement of the incorrect entry;
• Prepare a B2 under section 74(1)(d) of the Customs Act to cancel the original transaction;
• Prepare a letter explaining the nature of the error and identifying the parties involved; and,
• The Broker who made the error must present the entire package (i.e., the B2 requesting the cancelation of the transaction, the explanatory letter and the V-type B3) to the CBSA at the same time to the appropriate CBSA Regional Trade Office. If a complete package is not presented, the request will be rejected.

The CBSA will process the B2 adjustment request only after the replacement V-type B3 has been accepted. The new debit B3 will be on the BN15 that is specified on the B3.  The entire correction process is required in accordance with subsection 67(a) of the Financial Administration Act, which states that a crown debt is not assignable.

As a result of the B2 that cancels the original B3, the incorrect account will show a credit B2 in the amount of the incorrect B3 (excluding GST). The correct account will now have the new V-type debit B3.

The next SOA for the incorrect account will have the correct transactions total in the header as a debit and credit amounts will balance to zero.

When keying paper Form B3, please check field 6 and ensure that all (G) or (I) indicators included in Field 6 are accurately keyed into the Customs Commercial System (CCS).

Field 6 on Form B3 allows importers on the GST Direct (G) or the Importer Direct Security options (I) to be identified by entering either a (G) or an (I) indicator in the field.

Not entering (G) or (I) indicators into the CCS leads to inaccurate monthly Statement of Accounts for customs brokers. This creates additional administrative work for customs brokers and the CBSA. Filling out this information correctly ensures that the duties and taxes owing on that Form B3 are posted to the correct importer Statement of Account.

Questions regarding this bulletin should be directed to CARM Client Support by completing the Client support contact form.