CBSA Assessment and Revenue Management (CARM)
CARM is a Canada Border Services Agency (CBSA) phased-in project to modernize the way the CBSA “…assesses, collects, manages and reports on import revenue and trade information.” Basically, the CBSA is modernizing their accounting and data management systems to provide the commercial trade community with a streamlined method of interaction with the CBSA. This will be achieved through the replacement of existing revenue and cash management systems, simplified processes, and direct electronic interaction options.
For most importers, this accounting piece is handled by a customs broker or service provider and therefore these changes will be transparent and no action is required.
Importers who have their own account security (direct payment option) with the CBSA are being contacted directly by the CBSA to arrange the transition process.
FedEx Express Brokerage Customers
FedEx Express brokerage customers who do not currently have their own account security will not see any change and no customer action is required. FedEx Express will continue to pay any duties and/or taxes (and other related charges as required) to the CBSA on customers’ behalf and invoice accordingly.
FedEx Express brokerage customers who do currently have their own account security are being contacted directly by FedEx Express to arrange the transition process.
The first phase of CARM is the Accounts Receivable Ledger (ARL) and is scheduled for implementation in January 2016. The ARL will replace the existing daily and monthly form K84 Account Statements with Daily Notices (DNs) and Statements of Account (SOAs).The ARL will provide electronic statement retrieval and payment options and will have account reconciliation features such as off-setting credits against debts and multiple transaction types (more than just B3 transactions).
CBSA CARM main page. Click on links under ‘Resources’ for FAQs, ASEC holder payment system details, new statement features, and more.
Accounts Receivable Ledger (ARL) Off-setting
On Aug 2, 2016, the CBSA introduced the off-setting reconciliation feature for importers’ accounts. For duty/tax refunds, this new off-setting process means that the CBSA will first apply credit amounts (duty and tax refunds) against debit amounts (amounts payable) on importer’s accounts to determine whether any credit is available. These amounts, along with the end balance, will appear on the importer’s monthly SOA. If there is a credit available, the CBSA will either carry over the balance to the following month or issue a cheque, depending on the amount.
For details about the off-setting process, please refer to the CBSA Customs Notice 16-19.
For FAQs, please click here.
More information is available from the CBSA CARM main page.