Archived - Status Report on Transformational and Major Crown Projects

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Project Name: CBSA Assessment and Revenue Management (CARM)

Description

The CARM project will modernize the systems and processes that support the assessment and collection of revenue from importers, and for reporting on revenue information and trade data. CARM will support a number of business improvements needed to address inefficiencies with current systems and processes and also meet key Government of Canada (GC) objectives for "red tape" reduction and regulatory reform.

When fully implemented, CARM will provide the CBSA with a modernized financial management regime focused on providing client-based services and processes, including an accrual system of accounting to ensure CBSA's compliance with the GC's Financial Information System (FIS). CARM will additionally facilitate its capacity to sustain a control-based audit and meet the requirements under the Treasury Board Secretariat's (TBS) Policy on Internal Controls.

It plans to modernize and reduce administrative burdens by the very way it interacts with its clients through automation and the development of smart tools for both clients and CBSA employees to use. It will remove administrative burdens associated with business reporting of trade information and improve transparency, predictability, accountability and overall performance. Furthermore, CARM will develop new assessment processes and tools to modernize the CBSA's revenue management and trade programs.

Implementing CARM will address the following business needs in support of CBSA and government-wide priorities and plans:

  • Improve accounting and reporting on importer revenues and trade information – CARM will improve the way the Agency assesses, collects and reports on duties and taxes from importers;
  • Replace aging revenue and cash management systems – CARM will replace several antiquated and failure-prone legacy revenue and commercial systems;
  • Modernize trade administration, monitoring and control – CARM will modernize tariff, origin, valuation, anti-dumping and countervailing program activities that support the accurate assessment of taxes and other revenue owed to the GC;
  • Improve trade program management efficiencies – CARM will improve efficiencies in the assessment and collection of trade revenues by reengineering, harmonizing and streamlining business processes;
  • Improve service delivery within the trade community – Service excellence is a key priority of the CBSA. CARM will implement trade service standards to improve the Agency's interactions with the trade community to ensure they receive fair, accurate, accessible, efficient and timely border services; and
  • Simplify trade business processes – CARM will support key priorities and objectives announced in the Government's Economic Action Plan 2012. CARM will harmonize the CBSA's reporting and accounting processes with those of the United States Customs and Border Protection as part of the Beyond the Border Action Plan. Throughout CARM implementation, the CBSA will assess opportunities to improve efficiencies in the administration of trade policies and programs and increase the competitiveness of Canadian businesses through easier trade flows and streamlined regulatory compliance with the United States.

The CARM project is included in the Treasury Board Secretariat's oversight portfolio of major IT-enabled projects.

CARM is dependent on, or has linkages to, the CBSA's eManifest Project and the Beyond the Border Action Plan on Perimeter Security and Economic Competitiveness. Elements common to eManifest and CARM, i.e. identification and authentication, information warehouse, and data acquisition and notification will be used to maximize economies of scale and minimize duplication of effort. CARM will leverage the enterprise eService Portal, being developed under the Beyond the Border Action Plan and will harmonize and streamline the CBSA's revenue accounting and reporting processes.

Project outcomes

  • Transparent, accountable and responsive reporting of trade and revenue information by implementing changes to the Agency's accounting practices and systems to produce fully auditable financial statements, increase accountability and improve asset stewardship controls. Beneficiaries include Canadians, the Government of Canada, Canadian provinces, and the trade community.
  • Timely, accurate and complete assessment and collection of importer duties and taxes by streamlining and automating commercial processes and replacing aging systems. Accurate assessment and reporting of revenues and trade data will support Government of Canada policy development. Beneficiaries include Canadians, the Government of Canada and Canadian provinces.
  • Fair, accessible and responsive service delivery for commercial importers through the establishment of a Business Simplification Initiative (BSI) to improve the clarity and efficiency of commercial processes and programs. Modernizing trade programs and Information Management/Information Technology (IM/IT) systems will improve service delivery to importers, exporters and carriers and enable new service delivery options. Beneficiaries include Canadians, the Government of Canada and the trade community.
  • Risk mitigation by addressing aging IM/IT systems through the replacement of antiquated, obsolete and non-integrated systems. New systems will be compliant with various GC financial policies, regulations and strategies, Generally Accepted Accounting Principles (GAAP) and financial management best practices. Beneficiaries include Canadians, the Government of Canada and the trade community.

Industrial benefits

The CARM project will benefit commercial clients and Canadian businesses by:

  • introducing an electronic option for the payment of duties and taxes;
  • introducing the ability to register, conduct assessment activities, obtain information, view financial transactions and manage accounts online with the CBSA through a portal;
  • providing the ability to retrieve statements of account via a secure portal;
  • implementing client-based accounting processes that will improve the range and responsiveness of services that the CBSA provides to commercial clients;
  • ensuring business continuity and the availability of IM/IT systems by replacing outdated systems with modern applications and platforms;
  • improving the accuracy and timeliness of trade data that will:
    • support the management of CBSA programs that ensure a level playing field for all importers, exporters and domestic businesses;
    • support the Government of Canada in developing effective and responsive fiscal and monetary policies; and
    • support Canadian businesses in their forecasting and decision making;
  • enabling the CBSA to manage the assessment and collection of revenue consistently, fairly and transparently; and
  • modernizing trade, improving program delivery to importers, exporters and carriers, and enabling new service options.

Sponsoring department

Canada Border Services Agency

Contracting authority

Public Works and Government Services Canada (PWGSC)

Participating departments

Canada Revenue Agency, Shared Services Canada, Treasury Board Secretariat

Prime contractor

To be determined.

Major subcontractors

To be determined.

Project phase

CARM is currently in the Planning phase. However, the CARM project has very recently been consolidated with the Accounts Receivable Ledger (ARL) Project. The ARL Project is currently in Execution phase, and now becomes the first release of CARM.

Major milestones

CARM Phase 1

October 2014

  • Accounts Receivable Ledger Planning and Design

(Complete)

  • CARM Planning
  • TB Submission for CARM Phase 2

CARM Phase 2

CARM Release 1 would include the following deployments: Client Master Data, e-payments for customs self-assessment clients, Account Receivable Ledger, including e-payments for all commercial clients.

  • Release 1A – Client Master Data – deployment date of April 2015
  • Release 1B – e-payments for customs self-assessment clients – April 2015
  • Release 1C – Account Receivable Ledger, including e-payment for all Commercial clients – March 2016

CARM Phase 3

Will continue until March 2020

  • Procurement of a Collaborative Procurement Solution (CPS) partner – June 2016
  • Implementation and rollout of remaining CARM capabilities – March 2020

Progress report and explanation of variances

  • The ARL development and CARM project definition phases were delayed due to CBSA resource constraints and the re-alignment of priorities for the combined CARM and ARL projects.
  • To address the CBSA's lack of capacity and capability to deliver such a large and complex project, the Agency conducted a Sourcing Assessment. The result is that the CBSA is in the process of procuring a Systems Integrator to complete the development, test and deployment of the ARL system. It is also initiating a Collaborative Procurement Solutions Approach to develop an external partnering arrangement for the design, development and deployment of the remaining CARM capabilities.
  • On October 9, 2014, Treasury Board granted amended and consolidated CARM and ARL Project and Expenditure Authority for the direction and execution of Phase 2 of the project.
  • An updated schedule for Phase 2 has been developed to implement the first release of CARM in three sub-releases
    • Release 1A – Client Master Data – deployment date of April 2015
    • Release 1B – e-payments for customs self-assessment clients April 2015
    • Release 1C – Account Receivable Ledger, including e-payment for all Commercial clients – March 2016
  • On October 15, 2013, two Re-profile Requests were submitted. One was a Reference Level Re-profile request for FY 2013-2014 and the other was a Fiscal Framework Re-profile Request for the remainder of the project. Both funding re-profile requests were necessary as a result of delays experienced by the project.
  • The project remains on track to be completed by March 31, 2020.

Project Name: Electronic Manifest (eManifest)

Description

eManifest is a major transformative initiative and part of the overall measures the Government of Canada is putting in place to enhance the safety and security of Canadians and international trade while streamlining cross-border processes. When fully implemented, eManifest will require carriers, freight forwarders, and importers in all modes of transportation to electronically transmit advance commercial information (ACI) to the CBSA within prescribed mode-specific time frames.

Project outcomes

  • Enhance CBSA's capacity to provide a pre-arrival risk determination prior to the arrival of goods in Canada.
  • Improve the efficiency of administering pre-arrival determinations by using an improved risk assessment capability
  • Provide the CBSA with the ability to conduct more effective enforcement activities.
  • Enable the CBSA to provide faster, more efficient frontline processing for commercial trade.

Industrial benefits

  • Enhanced prosperity: eManifest will contribute to a strong economy by facilitating the flow of low-risk trade in a high-volume, time-sensitive, trans-border environment.
  • Enhanced security: Canadian society will be better protected from health, safety, security and terrorist threats as eManifest will "push the border out" as a means to obtain the right data at the right time. eManifest will use sophisticated tools and technology and rigorous risk assessment systems to interdict threats prior to their arrival at the border.
  • Streamlined border processing: Obtaining and risk assessing commercial information from trade-chain participants before the arrival of goods in Canada will minimize the processing required at the border, streamline the clearance process and reduce border congestion.
  • Consistency of application: As eManifest will expand the existing requirements for marine and air carriers to those in the highway and rail environments, there will be a consistent application of risk assessment across all modes of transportation relative to CBSA requirements.
  • Reduced costs of compliance: Members of the trade community will be able to leverage the investment they are making to comply with both international and U.S. requirements. To the greatest extent possible, eManifest will develop system requirements using recognized international and North American standards.
  • Enhanced systems performance: Given the high volumes and compressed time frames associated with trans-border trade, the CBSA will make enhancements to its information technology infrastructure that will improve system performance and reliability.
  • Improved communication on status of shipments/document through new and enhanced notification to trade chain partners.

Sponsoring department

Canada Border Services Agency

Contracting authority

  • Public Works and Government Services
  • Shared Services Canada
  • Canada Revenue Agency

Participating departments

Not Applicable

Prime contractor

Not applicable

Major subcontractors

IBM, Emerion

Project phase

Execution Phase

Major milestones

Deployment 1 – Core Business Information Model – June 2014

Deployment 2A - Capacity for National Targeting Centre to assess risk based on historical trend analysis - October 2014

Progress report and explanation of variances

Initially, the Treasury Board approved eManifest, which had an estimated cost of $415 million.

In February 2014, based on internal and external project reviews it was concluded that the project approach was at high risk of not meeting planned delivery dates.

Subsequently, project recovery was undertaken and a dedicated team was formed to perform root cause analysis of the identified risks, identify mitigation strategies and develop a plan to recover the project and deliver on the benefits committed in the original business case.

In June 2014, a detailed project plan with costs was presented to and approved by the Executive Committee within the CBSA.   

The new project plan is supported by changes within the project governance framework; better integration of business and IT teams, streamlined processes for risk and issue management, better change control and a work breakdown of the remaining deliverables into six deployments;

  • Deployment 1 – Business Information Model; implemented in June 2014. Over 20 million eManifest records have been collected since Deployment 1 was implemented.
  • Deployment 2 – Advance Analytics; implemented in October 2014. Allows the National Targeting Centre to use historical and near real time eManifest data to analyze and detect high risk importations in all modes of transportation.  
  • Deployment 3 – Automated Risk Assessment of High Risk Commodities; will allow the National Targeting Centre to use the eManifest Automated Risk Assessment system to identifying importations of high risk commodities (e.g. dual use goods, precursor chemicals) in all modes of transportation.
    • Production date is March 31, 20
  • Deployment 4 – Automated Risk Assessment and Targeting System; ability of the National Targeting Centre to assess the risk of all commercial importations and target high risk shipments in all modes of transportation.
    • Production date is December 2015
  • Deployment 5 – Integrated Decision Model; ability for border services officers at all ports of entry to access the eManifest Passage system. Passage will be in an integrated system to support closing the loop on shipments referred for exam by the National Targeting Centre.
    • Production date is December 2016
  • Deployment 6 – Operational and Performance Reports; ability for Programs and Operations to measure and monitor program performance.
    • Production Dates;
      • Deployment 6A December 2015;
      • Deployment 6B December 2016.

The eManifest project plan is tracking deliverables and milestones against a revised project plan; the project is to be completed by March 2017.

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