The CBSA Accounts Receivable Ledger System (ARL) - Are you Ready?

CBSA ARL ReadinessCBSA Account Receivable Ledger for Importers

October 28, 2015

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Questions and materials

Additional resourcesFor a limited time, access Livingston’s helpful resource materials by going to: http://www3.livingstonintl.com/ARL-Readiness

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Candace SiderVice President, Regulatory Affairs Canada

Today’s Presenter

Agenda

Overview of ARL

• What is ARL?

• Key changes in the new ARL process

• Daily Notice and Statement of Account

• Impact to Importers

• Implementation timeline and cutover strategy

• Payment options

An Overview of ARL

What is ARL?

The CBSA Accounts Receivable Ledger system (ARL) is the first phase of the CBSA Assessment and Revenue Management (CARM) initiative, which will make various changes to accounting processes.

● Allow CBSA to more efficiently and effectively manage and report on revenues collected on behalf of the Government of Canada;

● Introduce client-based accounting;

● Allow offsetting of a client’s debits and credits, thereby reducing the number of, and costs associated with issuing refund cheques;

● Allow clients to centralize their accounting and payment processes;

● Offer current commercial clients posting account security with the CBSA new comprehensive daily notices and monthly statements of account; and,

● Introduce an e-payment option

Key changes in the ARL process

● Daily K84 is replaced by a Daily Notice

● Month end K84 is replaced by a Statement of Account

● The Daily Notice and Statement of Account will include new transaction types not currently seen on the daily and monthly K84

● The client’s account is no longer “transaction based” but “client based” at the BN15 level.

●Payments will be allocated to transactions in a specific order according to the payment allocations rules, clearing interest, NSF, and overdue items, before clearing B3 transactions

● Electronic payment is enabled

Impact to importers

Daily Notice – Importers that have their own ASEC number● The client’s Daily Notice (DN) details the receipt and posting of certain

types of transactions received in ARL during the previous day.

● The Daily Notice will include new transaction types not currently seen on the daily K84. The complete list of transaction types included is as follows:

● Canada Customs Coding Form (B3) ● Canada Customs DAS’s - Account Payable and Account Receivable (B2-1 AP & AR) ● Late Accounting Penalties ● Notices of Penalty Assessment● K23 invoices ● K32 for Drawbacks● Reversal of previous documents● Transactions under appeal or review ● NSF – NSF Administration Fee

Importers that don’t have their own ASEC `

● Status quo

● No change to current process

● Importers can obtain a copy of their statement at an ARL office

Daily K84 vs. Daily Notice

14

Current Statement (K84) New Broker Daily Notice* New Importer Daily Notice

Daily Notice Sections

Header

• Legal Entity Name • Issued by ASEC • Statement Date• Name of Office

• Legal Entity Name• Issued by Broker BN9• DN Date• Payments Received (amount posted on the broker account)• Refund to the Broker

• Legal Entity Name• Issued by Importer BN15• DN Date• Payments Received (amount posted on the importer

account from broker or from importer)• Refund issued to the importer

Transactions

• All B3s associated with an ASEC from the previous day

Includes the following transactions that make use of broker’s Account Security from the previous day• B3 Assessment• LAP Late Accounting Penalty• B2-1 AP DAS

(These transactions are from the previous day and are due at the end of the month, i.e. the SOA due date)

• All B3 assessments posted to the client’s account• Late Accounting Penalty (LAP)• B2-1 AP DAS• K32 Drawback

(These transactions are from the previous day and are due at the end of the month, i.e. the SOA due date)

Other

Transactions

• Not applicable (i.e. no additional transactions)

Includes the following transactions that make use of a broker’s Account Security• B2-1 AR • Charges incurred directly to the broker (i.e. NSF) will appear within a

broker specific-section

(These transactions are from the previous day and have individual due dates)

• B2-1 AR DAS• NPA Notice of Penalty Assessment (i.e. NPA)• K23 Miscellaneous Invoice • NSF Fees


Under

Review


All appealed transactions under broker ASEC


All appealed transactions


*The broker DN is arranged into sections corresponding to each importer (BN15) using the broker Account Security. If the broker incurs charges to their own brokerage account (i.e. NSF) , there will also be a brokerage section posted to their broker account. The “Transactions,” “Other Transactions”, and “Under Review” appear as sub-sections within each brokerage/importer section.

Company 101 2015-07-22$3,334.06

BN/NE: 300300301RM0001 $250.00

B3 Field 6 champ 6 If/si "I" / "G"

Document TypeType de

document

ReleaseDate de

mainlevéePort

BureauDocument #

No du document

Customs DutiesDroits dedouanes

SIMALMSI

Excise TaxTaxe

d'acciseGST/PST/HSTTPS/TVP/TVH

OthersAutres Total

G B3 2015-07-21 0431 15436000000456 645.34 83.89 729.23

LAP/SDDT 2015-07-21 0431 671687456 100.00 100.00

I B3 2015-07-21 0431 87451000000101 7,006.34 910.82 7,917.16

B3 2015-07-21 0431 87451151645820 0.00

TOTAL $7,006.34 $645.34 $0.00 $994.71 $100.00 $8,746.39

Document DateDate du

document


documentDocument #

No du documentPayment Due Date

Date d'échéance Total

2015-07-21 B2-1, AR/CR8745115164582087451000000201

2015-08-20 2,295.41

2015-07-21 K23 202403P 2015-07-31 50.852015-07-21 NPA/ACP 158261 2015-08-20 500.002015-07-21 NSF/SP 7056748 2015-07-21 25.00

Document DateDate du

document


documentDocument #

No du documentPayment Due Date

Date d'échéance Total2015-07-06 NPA/ACP 454324 2015-08-05 500.00

Under Review / Sous révision

Transactions 2015-07-21

Other Transactions / Autres transactions

DAILY NOTICE/AVIS QUOTIDIEN

DN date / Date de l'AQ Payments Received / Paiements reçus

Refund / Remboursement

In addition to being available in CADEX and EDIFACT formats, the new statements are available in XML format, which can be opened in Excel.

Current daily statements provide a list of B3 transactions and LAPs associated with an ASEC number made the previous business day. They do not include other transaction types, such as refunds or previous payment information.

New statements are arranged into sections to make it easier to see what amounts are due and when:

• Transactions: These transactions were entered the previous business day and are due on the SOA due date (i.e. end of the month)

• Other Transactions: These transactions are from the previous day and are due on their respective due dates.

• Under Review: These transactions were approved for appeal the previous business day and are due on their respective due dates.

Daily K84

DRAFT

15

New statements provide account-level information on payments received and refunds issued the previous day, to simplify account management.

The DN is issued by BN15 number. The BN15 and legal entity name are reported here.

Daily Notice (DN) for Importer

Note 1: This leaflet contains high-level information. For a more detailed examination of the SOA and DN, please refer to the ARL Reference Manual.Note 2: The image above is provided for demonstration purposes only. The format and content of actual statements may differ from what is shown.

Monthly Statement of Account

● The client’s Statement of Account (SOA) provides commercial clients with a summarized daily total for all documents posted within the current billing cycle and indicates the total amount payable and the payment due date.

● A total for “Transactions” Section of each Daily Notice within the current billing cycle will appear on the Statement of Account.

● B2-1 AR/CR; Ascertained Forfeitures (K9); Notices of Penalty Assessment will be listed in the "Other Transactions/Under Review" section of the SOA, along with any documents under review or appeal.

● Cash B3s, will not appear on the Daily Notices or Statement of Accounts.

Monthly K84 vs. Statement of Account

17

Current Statement (K84) New Broker Statement of Account* New Importer Statement of Account

Statement of Account Sections

Header

• Legal Entity Name • Issued by ASEC • Statement Date• Name of Office

• Legal Entity Name• Broker BN9• SOA Date • Payment Due Date

• Legal Entity Name• Importer BN15

Summary Section:-SOA Date-Payment Due Date-Previous SOA Balance-Payment since last SOA-Refunds

Importer

Summary Secti

on

• Not applicable • Transactions field: All B3 transactions (LAP and credit) during the billing cycle and previous unpaid B3s and LAPs.

• Other Charges field: All other transactions that have a due date on or before the SOA due date that are not paid or secured.

• Total Payable field: Sum of the transactions field and the other charges field.

• Not applicable

Transactions

• Daily summary total of all B3 transactions and daily LAPs during the billing cycle

• Daily summary total of all B3 transactions and others (LAP, B2-1 AP) during the billing cycle that make use of a broker’s Account Security

(Transactions sent during billing period due at the SOA due date)

• Daily summary total of all B3 transactions and others (LAP, B2-1 AP, K32) during the billing cycle that were posted to the importer account

( Transactions from billing period due at the SOA due date)

Other

Transactions


Includes the following transactions that make use of a broker’s Account Security• B2-1 AR DAS • Charges incurred directly to the broker (i.e. NSF) will appear within a

broker-specific section

(These transactions have individual due dates and will continue to appear until fully paid and cleared)

• B2-1 AR DAS• NPA • K9 Ascertained Forfeiture• K23 Miscellaneous Invoice • NSF Fee

(These transactions have individual due dates and will continue to appear until fully paid and cleared)

Under

Review


• All appealed transactions

(These transactions have individual due dates and will continue to appear until the review is complete)

• All appealed transactions

(These transactions have individual due dates and will continue to appear until the review is complete)

* The broker SOA is arranged into sections corresponding to each importer (BN15) using the broker Account Security. If the broker incurs charges to their own brokerage account (i.e. NSF), there will also be a brokerage section posted to their broker account. The “Importer Summary Section,” “Transactions,” “Other Transactions”, and “Under Review” appear as sub-sections within each brokerage/importer section.

-Unpaid Balance Forward-Arrears Interest-Transactions-Other Charges (new)-Total Payables

In addition to being available in CADEX and EDIFACT formats, the new statements are available in XML format, which can be opened in Excel.

Current statements provide a list of B3 transactions and LAPs associated with an ASEC number. They do not include other transaction types, such as refunds or previous payment information.

New statements provide account-level information to simplify account management. The total amount owing appears in this section, as well as the previous month’s SOA balance, payments since last month, refunds, and interest in arrears.

Note: On the importer Daily Notice (DN), this section is limited to payments and refunds.

New statements are arranged into sections to make it easier to see what amounts are due and when:

• Transactions Section: These transactions are due by the SOA due date and contain only transactions made during the billing period.

• Other Transactions Section: These transactions are due by their respective due dates, and will continue to appear until paid. Once paid they will display on the current SOA and then will no longer display on future SOAs.

• Under Review: These transactions are due by their respective due dates, and will continue to appear until the review is complete.

Monthly K84

New statements are issued by BN15 number. The BN15 and legal entity name are reported here.

DRAFT

Note: This document contains summary level information. For a more detailed examination of the SOA and DN, please see Scenario 20 in the ARL Reference Manual.

Monthly Statement of Account (SOA) for Importer

18

ARL introduces electronic payment

The following payment options are available:

● EDI-820

● Wire Transfer for non resident importers

● Internet Banking

● Cheque

● Through a CBSA-ARL or ARL lite designated office • using a combination of cash, cheque, debit card and credit card• Debit card transactions must be less than $500.00• The BSO or cashier will generate a Cash Receipt for the

amount in the name of the payer.

Direct Payment Option - Benefits

● Importers will be required to remit payment on the last business day of the month to the Receiver General

● Eliminates the requirement to provide payment to the broker minimum 2 days prior to payment due

● Confidence that payment is allocated to the Receiver General within the prescribed time period.

● Importer controls the entire payment process

21

Cutover Schedule

F S Su M T W Th F S T Su M T W Th F S Su M T W Th F S Su M T W

TW

F S

Fri 22 Sat 23

ARL• No ARL DN

• Last daily K84 printed (Fri data)

• TCPs to be notified of successful go-live)

Mon 25ARL• First ARL DN

(Sat, Sun, Mon data)

• ARL begins accepting payments, processing refunds

Tue 26ARL• Second ARL DN

(Tues data)

• Last monthly K84 sent electronically in evening

Wed 27ARL• Third ARL DN

(Wed data)

• Last monthly K84 available on paper

Thu 28

January

ARL• Fourth ARL

DN (Thurs. data)

• Final payments for K84 accepted

• Due date for K84 payment

Fri 29

Sun 17• Cutover code

activation (CCS to ARL)

• Last daily K84 produced

ARL Release• ARL goes live and becomes official

system of record

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Importers who hold their own ASEC number

●Only importers with their own ASEC number can receive their Daily Notices and Statements of Account

●The SOA provides much more visibility to the activity on an importer’s account

●Importers will receive a separate DN/SOA for each BN15 account

●Importers can authorize their broker, or other 3rd party service provider, to receive their DNs and SOAs on their behalf

●Importers can choose to pay electronically direct to the Receiver General

How to receive the DN / SOA

● Importers need to complete the form in order to receive the DN/SOA electronically

● Importers need to complete section 3 to authorize their broker to receive the DN/SOA on their behalf

● Choice of file format will be dependent on choice of receiver

● Importers are required to undertake a testing process to certify

How to reconcile a DN and SOA

If an importer chooses to receive the DN and SOA directly from CBSA

• Will need to connect to CBSA daily to pick up the DN and/or SOA• Will need to format the file and map to existing financial systems

If an importer chooses to have their broker or other 3rd party service provider receive on their behalf

• The broker/provider will pick up the file on the importer’s behalf• The broker/provider will format the file in a suitable format (i.e. Excel) as required

by the importer and deliver accordingly• Broker/provider may reconcile individual transactions against

records in their operating system

Payment must be generated and delivered to CBSA by the due date

Next Steps

Next steps

● ASEC Holders - make the decision whether to receive the DN/SOA directly or through Livingston

● Make the choice of file format, whether directly from CBSA or through Livingston

● Determine payment method

● Notify Livingston of your decision [email protected]

mailto:[email protected]

Questions and materials

Additional resourcesFor a limited time, access Livingston’s helpful resource materials by going to: http://www3.livingstonintl.com/ARL-Rediness

[email protected]

Click the “+” to expand the questions box

Type your question(s) here

Asking questions on GoToWebinar


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Nov 25 2015 CBSA Accounts Receivable Ledger Rediness

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