Ottawa, March 13, 2013
This memorandum outlines the policies and procedures of the Canada Border Services Agency (CBSA) requirements for client registration, to account for, and for payment of duties and taxes on imported commercial goods. This memorandum does not include procedures for goods cleared under the Customs Self Assessment (CSA) program. For procedures related to goods cleared under the Customs Self Assessment Program, please consult D17-1-7, Customs Self Assessment Program for Importers. A glossary of CBSA terminology is included at the end of Section 4.
Note: Amounts are in Canadian dollars unless otherwise specified.
1. Importers may choose to transact business directly with the Canada Border Services Agency (CBSA) or they may authorize a licensed customs broker to conduct business on their behalf such as;
2. The importer is required to provide the customs broker with written authority to act as their agent along with all the information needed to complete customs documentation. For more information on acceptable written authority refer to D1-6-1, Authority to Act as Agent.
3. Fees imposed by customs brokers are not regulated by the CBSA. Although importers may use a customs broker to transact business with the CBSA, they are ultimately responsible for accounting documentation, payment of duties and taxes, and subsequent corrections.
4. To transact business with the CBSA, a commercial importer requires a business number with an import/export account (RM). All release, interim and final accounting documents for commercial importations must show a valid BN. The correct BN account number must be indicated on both release and accounting documents.
5. To ensure that goods are released quickly, importers or customs brokers should arrange for an importer/exporter account with customs before a shipment arrives at the border or point of entry. If the Business Number (BN) indicated on interim release or final accounting documentation is rejected by the customs system as "invalid," the documentation will be returned to the importer or customs broker and the goods will not be allowed to enter Canada.
6. The name used on all release and accounting documents must correspond with the name under which the company registered for its customs program account. Clients with only one RM account who provide hard copy documents do not have to specify the account identifier on release and accounting documents. Clients with more than one RM account must enter all 15 characters of their BN on all documents.
7. The letters RM should not be included as part of the account number on accounting documents. The number should appear as below:
8. If an importer or customs broker has more than one RM account but has not specified which one, the CBSA will release the shipment and issue Form Y50, Reject Document Control, to the importer or customs broker. Final accounting documents will not be accepted until the required corrections have been completed.
Note: Accounting time limits are not protected.
9. The BN consists of 15 digits made up of a nine digit registration number and a six character alphanumeric account identifier. The nine digit registration number identifies the business and remains the same regardless of the number or types of accounts. The account identifier includes a two character program identifier and a four digit reference number identifying the account in each program. Companies can have one or more account numbers in each program.
10. The four program identifiers are:
11. An importer or exporter may have more than one RM account identifier. For example, a company with branches or divisions will have one nine digit registration number but may have separate RM account identifiers for each branch or division.
12. Example BN: 123456789 RM 0003
In this example, 12345 6789 is the company's registration number. RM identifies the program (in this case the Import/Export program). The last four digits (0003) identify the account number, a third Import/Export account.
13. An importer or customs broker registering with one of the BN programs for the first time, or adding an RM account to an existing BN, must use specific forms when faxing the registration request to the Winnipeg Tax Centre (WTC) at 1-800-959-8302.
14. The following forms and pamphlets are available at most CBSA and Canada Revenue Agency (CRA) offices and on the CRA website at www.cra.gc.ca.
15. Form RC1, Request for a Business Number (BN), for businesses, in all the provinces except Quebec, with no accounts in the BN program. The pamphlet RC2, The Business Number and Your Canada Revenue Agency Accounts, provides information about the BN.
16. For businesses in Québec, please consult the CRA website at www.cra.gc.ca and select business account registration.
17. Form RC1C, Business Number (BN) – Import/Export Account Information, for clients who have a BN but need an RM account. A sample of Form RC1C can be found on the CRA website at www.cra.gc.ca.
18. In the event an urgent registration is required, a customs broker can contact the Customs Business Number Registration (CBNR) unit of the WTC from 7 a.m. to 6 p.m. (Central Daylight Time). Customs brokers/agents who are registering their clients by telephone must be prepared to provide the WTC with all of the information required on the appropriate form.
Note: Before contacting the WTC to request a new BN or an RM account for a business, the customs broker/agent should make every effort to verify with the client that the business does not have an existing BN or RM account.
19. To register, or for more information, contact the nearest CRA tax services office. Telephone numbers are listed in the blue pages of the local telephone book in the Government of Canada section. Registration may be obtained by telephone, fax, or mail. Local CBSA offices also provide forms and forward completed applications to a tax services office for processing. Tax services offices are open Monday to Friday, except statutory holidays, from 8:15 a.m. to 4:30 p.m. The Tax Services Offices’ addresses, office hours, and fax numbers can be found on the CRA website at www.cra.gc.ca.
20. The following information must be provided to register for a BN:
Legal entity name:
123 Ont. Inc.
Operating or trade name:
Blues Brothers Steel Company
987 Rockshore Drive
Toronto ON T4K 8L8
c/o John Smith Attorney at Law
879 Bloor Street
Toronto ON T8J 3N7
123 Ont. Inc. – Vancouver Office
c/o ABC Customs Brokers
789 Stanley Drive
Vancouver BC V3K 7S1
21. Circumstances when customs brokers will use their BN RM account:
22. A request to change BN identification information, such as business name or address or to have an importer/exporter account reactivated should be forwarded to a CRA business window.
23. If the legal basis under which business is conducted changes, such as when an unincorporated business becomes a corporation, or a corporation merges with one or more corporations to form a new corporation, a new BN may be obtained from a CRA business window if required.
24. Importers should provide customs brokers or agents with up‑to‑date import/export account data on a regular basis.
25. Only the importer and those authorized by the importer will be given access to client account information. Customs brokers or agents requesting confirmation of a client’s BN account information will be directed to contact the client.
26. The CBSA needs information to verify the value, classification, country of origin, tariff treatment, and exchange rate on imported goods. This data, as well as a breakdown of the duties and taxes owing must be shown on Form B3, Canada Customs Coding Form. Most of this information can be found on the commercial invoice provided when the goods were purchased. It may be conveyed either via hard copy (paper) or electronically.
27. The CBSA monitors all release and accounting documents for quality. Requirements for the completion of the various release documents can be found in Memorandum D17‑1‑10, Coding of Customs Accounting Documents. Importers and customs brokers must comply with the statutory or regulatory provisions on release documents (interim accounting) to the same extent as at final accounting.
28. The coding and format of Form B3, Canada Customs Coding Form, used to account for commercial goods, must be in accordance with Memorandum D17‑1‑10, Coding of Customs Accounting Documents. Accounting data transmitted electronically must comply with these requirements in the format set out in the CADEX participants requirements document. The information shown on Form B3 must agree with the information on the release documentation.
29. If the importer or customs broker has posted security with the CBSA for release of goods prior to payment, the account security number appears as the first five digits of the transaction number on all accounting documentation. The transaction number is a 14 digit number that must be provided in bar code format. Information on the transaction number and coding instructions for the B3 are available in Memorandum D17-1-10, Coding of Customs Accounting Documents.
Note: The CBSA will apply the 14-digit bar-coded transaction number to accounting documents submitted by clients who do not have security.
30. The hard copy B3 must be given to the CBSA office where the goods are released. It may be either typed or handwritten. Copies of the form are available at CBSA offices, or it may be privately printed. Specifications are found in Memorandum D17-1-11, Private Printing Policy and Procedures. A copy of the form may also be obtained through the CBSA website at www.cbsa.gc.ca. A sample is also contained in Appendix A.
31. CCEPS is a self-serve automated system for individuals or small businesses who import commercial goods. Clients can use CCEPS at a computer station in certain CBSA offices to complete Form B3. The system helps clients complete the form through a series of prompts, calculates applicable duties and taxes, and generates a printed accounting form. A list of offices that provide CCEPS is contained in Appendix B.
32. Accounting data may be transmitted by way of EDI from a company’s office to the CBSA’s Customs Automated Data Exchange (CADEX) system. For more information on how to participate in electronic commerce accounting, contact the Electronic Commerce Unit (ECU) Help Desk at 1‑888‑957‑7224 or go to the web link at www.cbsa.gc.ca under services.
Note: An importer or customs broker must have security for release prior to payment in order to transact business electronically with the CBSA.
33. Form B3 is the official invoice for both cash clients and account security holders and represents an obligation for the duties and taxes owing on the goods. All corrections, audits, and appeals are based on the data submitted on this document.
34. The B3 is the only document that cash clients use for payment of duties and taxes. However, form K84 is issued by the CBSA on a daily and monthly basis for those clients with account security.
35. Final accounting documentation for goods released on the basis of interim accounting documents must be presented to and accepted by the CBSA’s automated system within the prescribed time limit or a $100.00 late accounting penalty will be applied to each overdue transaction.
36. The CBSA makes a distinction between “high value” and “low value” shipments for the purpose of establishing time limits for submitting this information.
37. The calculation of the time limit for high value shipments is based on regular business days and does not include Saturdays, Sundays and federal and provincial holidays.
38. Final accounting documentation must be presented or transmitted and accepted by the CBSA’s automated system within five business days of the date the CBSA releases the goods. The day of release is considered day zero. When goods are released on a Saturday, Sunday, or holiday, the accounting period begins on the first business day after release.
39. Importers or customs brokers have until one half hour before the end of the day shift, on the fifth day to submit their accounting data. If the data is transmitted electronically, CBSA must receive and validate the data prior to 9:00 p.m. E.S.T. on the fifth day. For an example of a time limit for a high-value shipment, please see Appendix C.
40. Accounting information must be presented or transmitted and accepted by the CBSA’s automated system by the 24th day of each month following the month in which the goods were released. Accounting documents must be presented or transmitted for each shipment released in the previous month. If the 24th day falls on a weekend or statutory/civic holiday, goods must be accounted for on the previous business day. Importers or customs brokers have until one half hour before the end of the day shift on the 24th to present their accounting data. If the data is transmitted electronically, CBSA must receive and validate the data prior to 9:00 p.m. E.S.T. For an example of a time limit for a low value shipment, please see Appendix D.
41. CBSA’s automated system will not generate the daily K84, Importer/Customs Broker Account Statement, on a provincial civic holiday.
42. If the importer or customs broker accounts or transmits accounting documentation on a civic holiday, the CBSA will assume the intent was to account without the benefit of the holiday and process the transaction normally (i.e., it will appear on the current monthly Form K84). For examples please see Appendix E.
43. An application may be made for an extension of the time limit of up to three business days where a CBSA error or delay may have contributed to a failure to account on time. Some examples might be:
44. The application should be made in a letter containing sufficient information to process the request. This letter must be submitted to the CBSA office where the goods were released.
45. Data from the accounting document is entered into the CBSA automated system which generates a Form B3-1, Canada Customs – Detailed Coding Statement (DCS). The DCS notifies of errors and serves as a receipt when the data is accurate. A sample of this form is contained in Appendix F.
46. If corrections are required, the CBSA cashier returns the complete accounting package and the DCS to the importer or customs broker.
47. If the system accepts the accounting document, the cashier will collect the duties and taxes owing, stamp the copy of the DCS and Form B3 “duty paid,” and return the DCS as receipt of payment. The CBSA will then release the goods.
48. Final accounting documentation must be presented and accepted by the CBSA’s automated system within the prescribed time limit or a $100.00 late accounting penalty will be applied to each overdue transaction.
49. Penalties assessed against high value shipments (exceeding $2,500.00) released at an automated office will appear on the K84. Penalties assessed against low value shipments, and high value shipments released at non-automated offices will be assessed manually and issued on Form K23A, Invoice. A sample of the Form K23A is contained in Appendix G.
50. This report is printed at automated CBSA offices each business day, and distributed to all account security holders. EDI participants have access to an electronic version. The report contains information concerning all shipments released the previous business day or earlier which were not entered into the CBSA’s automated system.
Note: Transaction queried on an electronic release notification will not be produced on the hard copy release notification report.
51. This report lists all transactions released by the CBSA for which no accounting data was received within the prescribed time limits. It includes transactions that were rejected when no revised accounting information was received. A penalty of $100.00 for each overdue transaction is identified on the daily notice once final accounting is provided.
52. If accounting information is presented late and transactions move from one deferred payment period to the next, late transaction payment interest is charged from the first calendar day following the date the duties and taxes should have been paid (the last business day of the previous month). Interest ends when the total outstanding duties and taxes have been paid. For an example please see Appendix H.
53. A client may seek waiver of a late accounting penalty identified on a K84 daily notice prior to assessment on a K84 monthly statement. Late accounting penalties and late transaction payment interest assessed on Form K84 monthly statement and Form K23A invoice may also be cancelled under the interest and penalty relief provisions. These discretionary provisions permit the CBSA to help clients resolve problems that arise from situations beyond their control, for example:
54. An application for waiver or cancellation is unlikely to be approved in a case where the late accounting or late transaction payment resulted from neglect or lack of awareness on the part of the importer or customs broker. An example of client neglect is a failure to adhere to transmission requirements specified in the ECCRD.
55. Applications for cancellation are also unlikely to be approved when the importer or broker had sufficient time to apply for waiver, but chose not, or neglected, to do so. Application for penalty cancellation will be denied if not received by CBSA within 90 days of the penalty being assessed unless an extension of time is granted under s. 129.1 of the Customs Act. [For information about extensions, see the CBSA website at http://www.cbsa.gc.ca/recourse-recours/extensionoftime-prorogationdedelai-fra.html (Accountability/Appeals/Extension).]
56. A Form E571 or a letter containing the same information is used to apply for a waiver or cancellation of late accounting penalties and associated late transaction payment interest, when applicable. A waiver application should be submitted immediately after the prospective penalty is identified on the daily notice, rather than waiting until the monthly statement is generated. This will ensure, whenever possible, that the penalty will not be assessed on the monthly statement if it is eligible to be waived.
57. Applications for waiver involving transactions released from a single releasing office should be sent to the CBSA office where the goods were released, preferably 5 or more business days before the monthly statement will be issued.
58. Applications for waiver or cancellation that involve transactions from more than one releasing office, accounting dates within 5 days prior to the monthly statement date, and/or automated systems problems may be forwarded to the
Manager, Recourse Policy
Recourse Directorate, CBSA
1686 Woodward Drive
Ottawa ON K1A 0L8
Manager, Recourse Division
GTA Region (Toronto), CBSA
1 Front St. W. 3rd floor
Toronto ON M5J 2X6
59. If the monthly statement has already been generated, the importer or customs broker should pay the penalty amount on the due date and submit an application for cancellation to the Recourse manager at the address noted above. The cancellation application should include proof of payment. If the application is approved, a cheque will be issued for that amount.
60. When clients are not satisfied with the outcome of their application for waiver, they can apply for cancellation within 90 days from the date the penalty was assessed on the monthly K84 statement or K23A invoice. This application for cancellation must include a copy of the first decision and an explanation of why the client thinks the decision should have been different. The application should be sent to the recourse manager at the address noted above.
61. The assigned recourse officer will contact the client about any cancellation application he recommends be denied and give the reasons for same. This letter will provide the clients with a short opportunity to respond. The delegated recourse official will review the recommendation and all client information and, for any cancellation application he denies, issue a decision letter and reasons. It will include reasons and identify any further recourse avenues that may exist.
62. CBSA may proactively waive late accounting penalties arising from a national CBSA system outage lasting more than four hours or from other CBSA systems problems, such as provincial holidays without a client application. Electronic commerce clients will be notified through a CADEX broadcast message the day after the system problem.
63. Due to the volume of penalties, the CBSA may sometimes not have time to proactively waive a penalty and it will appear on the monthly statement. A copy of the daily notice on which the prospective penalty is identified should be provided to the client’s central payment office with a copy of the notice referred to in paragraph 61. The payment office will verify whether the penalty should have been waived and, if so, will cancel the penalty prior to payment.
64. All cancellation applications approved by CBSA Recourse that result in a refund of late accounting penalties and associated late transaction payment interest, when applicable, will be assigned a bar code number. This bar code number will appear on Form E571, Late Accounting Penalties – Application for Waiver, Cancellation, in the "Mail cheque to" field. A copy of the bar-coded Form E571 is sent to the client to confirm the status of his or her application.
65. The bar code number will be used by the CBSA regional office that issues refunds to issue the cheque and it will also appear on the cheque stub. This should allow the importer or customs broker to cross-reference their refund to the original application for cancellation.
66. The daily and monthly importer/customs broker account statements (K84) are generated by the CBSA office where the Form B3 was received. K84s will be redirected to CBSA central payment offices. The K84s may be picked up at the payment office on a daily basis. Samples of a daily and monthly K84 are contained in Appendices J and K.
67. The CBSA’s automated system generates a K84 daily notice for each account security number, identifying the accounting documents accepted by the system the previous business day by transaction number, sorted by office of release. The transactions on a customs broker’s daily notice are also sorted by importer.
68. Customs brokers may obtain a separate page of the K84 daily notice for clients under the Importer Direct Security Option, if an “I” is indicated in payment mode code, Field No. 6 on Form B3. A separate page is not provided for clients under the GST Direct Payment Option. For more information on security and options refer to D17-1-8, Release Prior to Payment Privilege.
69. On the second-last business day of the month, the system generates a K84 monthly statement, which provides a summary of all K84 daily notices processed during the deferred payment period. The deferred payment period is from the 25th day of the previous month to the 24th day of the current month inclusive. This statement shows the total amount of duties and taxes owed, including any late accounting penalties, late transaction payment interest, and interim payments made during that period.
70. The K84 monthly statement is provided to the account security holder for whom the statement was generated. A customs broker is responsible for determining amounts owed by their clients and advising them accordingly.
71. Importers or customs brokers who submit accounting documents electronically receive an electronic copy of the K84 daily notice and monthly statement in addition to the hard copy. If a discrepancy exists between the electronic and hard copy versions, the hard copy version will take precedence.
72. Accounting data electronically transmitted to the CBSA on a statutory holiday is not loaded into the automated system until the next working day. Accounting data transmitted on the holiday and on the following business day will appear on a daily notice dated the second business day following the holiday.
73. Separate K84 daily notices are generated, since the entry data was transmitted to the CBSA on two separate accounting dates. The first notice shows the transactions transmitted on the holiday and the second notice the transactions transmitted on the following working day. The first notice ends with an accounting day total and account total but no grand total. The second notice ends with an account total and the grand total. The grand total shown on the second notice includes the account total from the first and second notices, combining the two amounts.
Note: A daily notice without a grand total is not complete.
74. Transactions from both days for clients receiving accounting information electronically will be displayed on a single daily notice with the same statement date.
75. Clients making interim payments on a K84 daily notice should pay the grand total amount shown on the second notice.
76. Corrections by the CBSA to K84 daily notices and monthly statements are referred to as accounting overrides. This type of correction will update the total duties and taxes owing for statement purposes only and does not update the actual accounting information (B3). Accounting overrides are performed at the payment office.
77. The original accounting information must be corrected to support any subsequent adjustments or as proof of the changes in the case of an audit.
Note: All corrections must be presented to CBSA using Form B2, Canada Customs – Adjustment Request before the monthly statement is generated on the second last business day of the month.
78. Accounting overrides will be accepted only in the case of clerical or typographical errors or CBSA keying errors. Accounting overrides will not be accepted for changes in the tariff classification, origin, value for duty or tax status. The normal procedures to submit Form B2, Canada Customs – Adjustment Request, for re-determination by an officer in a regional Trade Compliance Division should be followed for requests involving changes in tariff classification, origin, value for duty or tax status for refunds under section 74 or corrections under section 32.2 of the Customs Act.
79. If the importer/customs broker discovers a typographical or clerical error or a CBSA keying error between the time the B3 data is submitted and before the monthly statement is generated, the error can be corrected through the Customs Commercial System (CCS) K84 override procedures prior to payment. The correction process is intended to address only those situations in which a calculation or transposition error has occurred or the CBSA has keyed the B3 incorrectly.
80. The correction process is not, under any circumstances, to be used to circumvent the legislated process for re-determination of tariff classification, origin, or value for duty, and therefore, cannot be used to change information such as the tariff treatment, tariff classification, or taxable status of imported goods. Changes required for tariff classification, origin, value for duty, or tax status must be submitted to CBSA on Form B2.
81. With the exceptions of:
B2s pertaining to goods released from Atlantic and Northern Ontario Regions should be submitted directly to the following address for processing:
Trade Services Division
c/o B2 Processing
400 Youville Square, 5th floor
Montréal QC H2C 2C2
B2s pertaining to goods released from Pacific should be submitted directly to the following address for processing:
CV & S, Client Services
c/o B2 Processing
55 Bay St. North, 6th floor
Hamilton ON L8R 3P7
B2s pertaining to goods released from the Prairie region should be submitted to the following address for processing:
CV & S, Client Services
c/o B2 Processing
55 Town Centre Court, Suite 718
Scarborough ON M1P 4X4
Note: The SOTC will make a decision on the request. Form B2-1, Canada Customs – Detailed Adjustment Statement, will be issued to notify if the claim is accepted or rejected.
82. If Form B2 is rejected by the SOTC, interest will be assessed. Refer to Memorandum D17-2-1, Coding of Adjustment Request Forms, for the legislative reference code to be used on the adjustment request. Samples of Form B2 and Form B2-1 are contained in Appendices L and M.
83. Importers/customs brokers must verify their Form K84 daily notices and bring in correction packages as early as possible. Normally, requests for corrections to a daily notice or a corresponding Form B3, Canada Customs Coding Form, will be accepted by the CBSA up to 12:00 hours (noon) on the third last business day of the month. This will ensure that the correction can be made before the monthly statement is issued on the second last business day of the month.
84. The CBSA will only correct B3 data using override procedures if a written explanation in the form of a letter of the clerical, typographical, or CBSA keying error is submitted with the request and all of the following conditions are met:
Note: The performance of an override is not to be construed as a determination or a re-determination under section 32.2, 58, 59, 60, or 74 of the Customs Act.
85. All errors must be reported to the client’s accounting office where Form K84 is generated. For CBSA keying error corrections, the importer/customs broker must present the following documentation:
86. For importer/customs broker errors, the importer/customs broker must present the following documentation:
Note: CADEX participants must provide a hard copy of Form B3 when requesting a correction. If the change is approved by the CBSA, the cash supervisor will perform an accounting override in CCS. The reason for the override must be clearly identified in the explanation field. The override will update the monthly statement with the new corrected totals. A copy of the override screen will be given to the importer/customs broker as confirmation of the correction. When the importer/customs broker’s Form K84 monthly statement is generated, a section will appear listing each approved override transaction and reflecting the corrected duties and taxes payable.
87. The importer/customs broker must present the following documentation to the CBSA office where the duties and taxes are to be paid:
88. If the change is approved, the B3 line on the importer/customs broker’s copy of the K84 daily notice will be changed, stamped with the CBSA office stamp, signed by the cash supervisor, and returned to the importer/customs broker. Because it is a non-automated office, corrections made by this office to Form B3 and K84 daily notices cannot be reflected on the monthly K84 statement. Therefore, copies of the corrected daily notices and Form B3 must be part of the customs broker/importer’s reconciliation process.
89. Requests for changes as a result of typographical or clerical errors after the monthly Form K84 statement has been generated must be submitted to the appropriate Trade Compliance office on Form B2.
90. Procedures for the presentation of Form B2 are outlined in Memorandum D17-2-2, Processing of Adjustment Request Forms. Importers/customs brokers will be expected to pay the amount in question pending the outcome of the Form B2 review by the Regional Trade Compliance Unit.
91. In exceptional circumstances only, the CBSA will allow a client to submit a completed Form B2 to the cashier at the payment office and to “short remit” by the correction amount in the case of an obvious typographical or clerical error when the error can impose a financial hardship on the importer/customs broker (e.g., duties of $100,000.00 showing when the correct amount is $100.00) and the importer/customs broker can adequately justify the delay in submitting the request for correction. A written explanation of the change must accompany the request; the change requested must match the information shown on Form B2, and the cash supervisor must be readily able to identify the required change. Requests of this nature will be reviewed on a case‑by‑case basis in consultation with the Assessment Unit, Assessment and Licensing Division, in Headquarters. This policy will be monitored to ensure that it is not abused by the importer/customs broker. The accounting override will not be performed unless Form B2 is also presented.
92. The legislative authority to be cited by the importer/customs broker in the “Justification for Request” field of Form B2 is paragraph 74(1)(d) of the Customs Act. In the “Explanation” field of Form B2, the statement “Request for K84 Accounting Override” should be shown.
93. If the change is approved, the B3 line on the importer/customs broker’s copy of the K84 daily notice will be changed, and Form K84 will be stamped with the CBSA office stamp, signed by the cash supervisor, and returned to the importer/customs broker.
94. In any other circumstances, if an importer/customs broker short remits on Form K84, Form K23A, Invoice, will be prepared in the name of the importer and daily late payment interest will apply on the outstanding balance from the first calendar day following the due date. This amount will be subject to action by the collections area of the Canada Revenue Agency (CRA). The collections area may apply a lien under section 97.25 of the Customs Act, thereby preventing any further release of goods for that importer, place a hold on any federal refunds until the debt is fully paid, or make a claim against the security posted by the importer/ customs broker is paid. The importer/customs broker will also be subject to a late payment penalty under AMP C336.
95. Clients should verify each daily notice to ensure that corrections are made in time to change the monthly statement. Corrections made after the third-last business day of the month will not affect the monthly statement and must be administered manually.
96. There are two methods of accounting for commercial goods and paying the duties and taxes on them:
97. Importers who have not posted security will have their goods released when they:
98. Importers or customs brokers who wish to obtain release of goods before accounting and paying duties and taxes must:
99. Account Security holders are entitled to:
100. For more information, refer to D17‑1‑8, Release Prior to Payment Privilege and Memorandum D1‑7‑1, Posting Security for Transacting Bonded Operations.
101. When goods are imported at various locations across Canada, each office where goods are released will issue a separate K84 account statement for duties and taxes. However, importers or customs brokers who have posted national security can designate the automated payment office(s) where they wish to have their statement generated for all shipments, regardless of where the goods were released. More than one payment office may be selected.
102. A written request should be submitted to Commercial Registration Unit fax: 613-946-0242. The account security number and telephone number of a contact person is to be indicated on the letter, as well as the CBSA office(s) to be used for presentation of accounting forms and the office(s) designated for central payment.
103. Central payment processing relates to payment only, not presentation of release or accounting documents. For each central payment office requested, offices where accounting information will be presented should also be indicated in the letter. A list with additional locations may be attached. Importers or customs brokers should indicate if they want only one central payment office for all releasing offices.
104. An automated CBSA office must be used for central payment for paper (hard copy) accounting documents. Importers and customs brokers may make special arrangements with the local non automated office to submit electronic accounting documents. For a listing of all office numbers and locations, please refer to our website under “CBSA offices” or see Appendix N.
105. Companies under this option should use these procedures for all transactions. To exclude specific transactions from a K84 monthly statement, a Form B3, type C, without the company’s barcodes must be submitted to the CBSA and payment made prior to release.
106. Payments may be made in:
107. The CBSA will only accept U.S. uncertified cheques if the above noted conditions are met and if they are drawn on a Canadian financial institution and are imprinted or stamped with the notation U.S. Dollar account. Uncertified cheques written in Canadian currency to be drawn on U.S. financial institutions will not be accepted by the CBSA. If any of these conditions are not met, the CBSA may accept uncertified cheques for up to $500.00.
108. Duties and taxes paid in cash, certified cheque, money order, or travellers cheque in U.S dollar amounts will be adjusted with the applicable exchange rate.
109. Clients with release prior to payment privileges monthly payments must be received at CBSA payment offices by 16:30 local time on the last business day of the month. This includes offices that are open seven days a week, 24 hours a day, for release of goods. Failure to meet this deadline will result in late payment interest at the specified rate and a late payment penalty (AMP C336).
110. All payments in excess of $25 million (only) are to be made at your financial institution. CBSA offices will only accept paper-based cheques for payments in excess of $25 million if the client banks with the same financial institution as the CBSA office. The CBSA will not accept multiple cheques for one payment.
111. The CBSA payment office will provide a copy of the RC165 (pre-stamped with the office’s G11 work location) to clients needing to make a payment in excess of $25 million. These are MICR encoded forms, therefore photocopies will not be accepted.
112. The client will complete the RC165 form, providing the necessary payment information including their account security and business number and their business name and address, which the CBSA requires for reconciliation purposes.
113. The client will present this form to the financial institution when making their payment. The financial institution will stamp the RC165 as proof of payment, and will provide the stamped receipt portion of the form to the client. The client must then report to their usual CBSA payment office with a copy of the document they have paid (e.g. DAS or K84), a copy of the bank stamped receipt for the payment and a copy of the reconciliation control sheet if applicable.
114. If such payments are not received on payment due date at the financial Institution, late payment interest will apply on the outstanding balance. The interest is calculated at the specified rate for the period beginning on the first day after the day the payment was due and ending on the day the amount is paid in full. The client will also be subject to a late payment penalty (AMP C336). A RC165 stamped “paid” must be delivered to the CBSA payment office by 4:30 PM local time on the payment due date.
115. CSA clients please refer to D17-1-7, Customs Self Assessment Program for Importers.
116. Importers who have their own security and who transact business under the customs broker’s account security number must provide full payment of their portion of the K84, importer/customs broker account statement, with:
Note: If a customs broker defaults or does not pay the CBSA, the importer is liable to the CBSA, even if payment was already provided to the customs broker.
117. Customs brokers may short remit their cheque amount by the total amount due by clients who have their own security and who do not provide payment to the customs broker. The customs broker must provide a Reconciliation Control Sheet to the CBSA payment office to support this; a sample of this sheet is contained in Appendix O.
118. If an importer/customs broker short remits on Form K84, a Form K23A, Invoice, will be prepared and daily late payment interest will apply on the outstanding balance from the first calendar day following the due date.
119. A late payment penalty will also be issued. The amount will also be subject to action by the collections area of the Canada Revenue Agency (CRA) and a claim may be filed against the security posted.
120. Importers under this option agree to provide payment for the full amount of GST for all transactions processed during a billing period, with a cheque payable to the Receiver General for Canada. The cheque must be given to a CBSA office or to their customs broker for remittance to CBSA. The payment must be provided by the last business day of the month in a billing period. Importers should advise their customs broker when they submit payment directly to a CBSA office. Customs brokers may short remit their cheque amount by the total amount of GST owed by GST direct payment option clients. The customs broker must provide a Reconciliation Control Sheet to the CBSA payment office to itemize what his cheque does not cover.
Note: If a customs broker submits full payment of a monthly statement with several cheques provided by importers under either the importer direct security option or the GST direct payment option, a calculator tape with the total amount must accompany the payment. A reconciliation control sheet is not required when full payment is submitted.
121. Payments may be made against an account at any time during the statement period. In order for interim payments to appear on the monthly statement, they must be made before it is generated. The payment should be the same as one or more daily notices or transactions to be entered in the CBSA’s automated system. The daily notice must be given to the cashier who will initial it or a specific transaction and stamp it “Duty Paid” as receipt for payment.
122. The CBSA’s automated system cannot be updated to reflect an interim payment that is not the same amount as a daily notice or transaction; for example, a lump sum payment. In such cases, importers or customs brokers should identify the account to be credited and the statement period to which the payment applies. The CBSA will issue Form K21, Cash Receipt, for the lump sum interim payment which must form part of the reconciliation control sheet when full payment is submitted at the end of the month.
123. An importer or customs broker must reconcile with the monthly statement. If interim payments are not reflected on the statement, the importer or customs broker must provide copies of each Form K21 along with the rest of the payment.
124. This document must list all outstanding amounts, specifying the importer’s name, BN, telephone numbers, account security number (if applicable), and balances outstanding by revenue category, for example, duties and GST, when presenting payment to the CBSA. The statement must also indicate any payments made during the month not reflected on the monthly statement. A copy of the receipt(s) issued for the payment(s) must be attached to the statement.
125. The following information must accompany interim payments:
126. A payment is considered partial when only a portion of the amount owing on the monthly statement is paid. A receipt will be issued for each partial payment made. Daily late payment interest will apply on the outstanding balance from the first calendar date following the due date. If the balance of payment is not received by the due date a penalty under AMPS may also be issued for failure to pay (in full) duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act.
127. Late payment interest applies to an outstanding balance. Daily interest is calculated at the Treasury Bill rate plus 6% for each day (specified rate), on the total outstanding amount. The calculation of interest owing will start on the calendar day immediately following the due date for the statement, and continue up to and including the date the balance is paid in full.
128. Interest is calculated daily for each day in which a balance remains outstanding. The total amount payable is based on the total tax, penalties, and interest outstanding. Prescribed interest rates are adjusted every calendar quarter (March 31, June 30, September 30, and December 31). To calculate interest, divide the annualized rate by 365 and compound it daily.
129. Failure to pay the amount of duties and taxes owing by the due date will result in a late payment penalty under AMPS. Clients who continually submit payment after the due date may lose their monthly payment privilege and/or be removed from the direct security option or GST option. For more information, please refer D17-1-8.
130. When no payment is received by the due date, Form K23A, Invoice, will be issued for the outstanding amount. The collections area of the CRA may apply a lien under section 97.25 of the Customs Act, preventing any further release of goods for that importer; place a hold on any other federal refunds until the debt is fully paid. Daily late payment interest will apply at the specified rate on the outstanding amount and AMP C336 will be issued for failure to pay duties on goods accounted for under subsections 32(2) and 32(3) of the Customs Act. For account security holders, non-payment could result in a claim against their security posted for release of goods prior to payment of duties.
131. When the bank returns a cheque for non-sufficient funds (NSF), the CBSA will issue Form K23A, Invoice, for the outstanding amount as well as a $15.00 administration charge. The payment is due immediately and must be made by certified cheque, cash, or money order. If a credit card number has been provided as identification, the amount owing including the $15.00 administration fee will be charged to the credit card.
132. A penalty assessed under the AMPS becomes payable on the day the Notice of Penalty Assessment (NPA) is served on the person. An NPA may either be served to the person by hand or sent by registered mail.
133. If payment is not received within 30 days from the date of your NPA, the amount of the penalty itself will be subject to interest at the prescribed rate, beginning the date following the date of this notice. However, if the penalty is paid within 30 days after the date of the NPA, no interest on the penalty will apply.
134. For more information regarding AMPS, please refer to D22-1-1, Administrative Monetary Penalty System.
135. Cash clients must pay at the CBSA office where the goods are released.
136. Account security clients may pay at any CBSA office if supporting documentation accompanies the payment. If the total amount is being paid, the cashier will stamp the invoice/ statement “Paid” and return it as a receipt. If only part of the amount is paid, the cashier will provide Form K21, Cash Receipt, for the amount paid. A sample of this form is contained in Appendix P.
137. For further information, contact your nearest local CBSA offices. Telephone numbers may be found in the blue pages of your telephone book or the Border Information Service Line
Calls within Canada, please call:
Service in English: 1-800-461-9999
Service in French: 1-800-959-2036
TTY within Canada
For those with hearing or speech impairments:
Calls outside of Canada – Long distance charges apply
Service in English: 204-983-3500
Service in French: 204-983-3700
1403, Route 95
Belleville NB E7M 4Z9
1449 Route 110
Royalton NB E7K 2E3
73 Milltown Blvd., P.O. Box 160
St. Stephen NB E3L 2X1
Montréal International Airport (PET)
725, Stuart Graham Nord
Dorval QC H4Y 1E6
2, Route 55
Stanstead QC J0B 3E2
Côte de Liesse Warehouse
10765, chemin Côte de Liesse
Dorval QC H9P 2R9
Lacolle Route 15 – Commercial
St-Bernard de Lacolle QC J0J 1J0
Stanhope – Commercial
1000, Route 147
Stanhope QC J1A 2S2
St-Armand – Commercial
10, Route 133
St-Armand de Philipsburg QC J0J 1T0
Mirabel International Airport – Commercial
Building « D »
11955 Cargo A-6, Room 100
Mirabel QC J7N 1G3
Montréal Long Room
400 Place Youville, 1st floor
Montréal QC H2Y 2C2
Bridge Plaza Building
Prescott ON K0E 1T0
Bridge Plaza Building
125 Huron Street
Sault Ste. Marie ON P6A 1R3
Highway 61, R.R.7
Thunder Bay ON P7C 5V5
1000 Island Bridge
Lansdowne ON K0E 1L0
101 Church Street
Fort Frances ON P9A 3X8
Lester B. Pearson International Airport
Cargo Building “B”, P.O. Box 40, AMF
Toronto ON L5P 1A2
10 Queen Street
Fort Erie ON L2A 6M4
14154 Niagara Parkway at Highway 405
Niagara on the Lake ON L0S 1J0
Blue Water Bridge
Bridge Street, P O Box 640
Sarnia ON N7T 7J7
2724 Roxburgh Road, Unit 2,
London, ON N6N 1K9
4285 Industrial Drive, P.O. Box 1655
Windsor, ON N9C 3R9
310 Hanna Street
Windsor ON N8X 4W6
3033-34th Avenue NE
Calgary AB T1Y 6X2
Via P O Box 699
Cardston AB T0K 0K0
P.O. Box 220
Coutts AB T0K 0N0
Edmonton International Airport
P.O. Box 9866
Edmonton AB T5J 2T2
Edmonton International Airport
4th Ave. & Service Road
P.O. Box 9866
Edmonton AB T5J 2T3
Emerson MB R0A 0L0
North Portal – Commercial
North Portal SK S0C 1W0
Highway 13, #10, R.R. 5
Aldergrove BC V4W 2L8
United Terminals, Room 210
7867 Express Street
Burnaby BC V5A 1S7
4 – 56th Street
Delta BC V4L 1Z2
Huntingdon – Commercial
2 Sumas Way
Huntingdon BC V2S 7L9
Kingsgate BC V0B 1V0
202 – 97th Street
Osoyoos BC V0H 1V1
Vancouver International Airport
113-5000 Miller Road
Richmond BC V7B 1K6
Pacific Highway – Commercial office
28 – 176th Street
Surrey BC V4P 1M7
503 – 333 Dunsmuir Street
Vancouver BC V6B 5R4
Metro Vancouver Long Room
333 Dunsmuir Street
Vancouver BC V6B 5R4
Accounting information must be presented or transmitted and accepted by the CBSA's automated system within five business days of the date the CBSA releases the goods. (Day of release is considered day zero). When goods are released on a Saturday, Sunday, or holiday, the accounting period starts on the first business day after release. Importers or customs brokers have until one half hour before the end of the day shift, on the fifth day to submit their accounting data. If the data is transmitted electronically, CADEX must receive and validate the data prior to 9:00 p.m. E.S.T. on the fifth day.
One month calendar for an unidentified month and year, beginning on Sunday the 10th, ending on Saturday the 30th, showing the release of 100 personal computers on Monday the 11th, and Form B3 to account for these on Tuesday the 19th and showing the release of 100 Microwaves released on Saturday the 16th and form B3 to account for these on Monday the 25th.
If the release was granted between April 1 and April 30, the final accounting must be done no later than May 24th; the duties must be paid by the end of the accounting month (i.e., by May 31th).
Calendar for the month of April, for an unidentified year, beginning on Sunday, April 12th and ending on Thursday, April 30th. The calendar shows goods released on Saturday the 18th, Tuesday the 21st, Thursday the 23rd, and Wednesday the 29th.
Calendar for the month of May, for an unidentified year, beginning on Friday, May 1st and ending on Saturday, May 23rd. The calendar shows goods released on Friday May 1st, Thursday May 14th, and Sunday May 17th. The calendar also shows Monday May 18th as Victoria Day. Finally, the calendar shows "Account for goods released April 1st to 30th" on Friday May 22.
Calendar for the month of April for an unidentified year beginning Wednesday the 1st and ending Thursday the 30th. The Calendar shows goods released on Thursday the 2nd, "Form B3 filing date for goods released on the 2nd" on Thursday the 9th, Good Friday on Friday the 10th, Easter Monday on Monday the 13th, "Form B3 submitted on 9th appears on K84 (daily Notice)" on Tuesday the 14th. The calendar also shows goods released on Monday the 20th, "Form B3 filing date for goods released on 20th" on Monday the 27th, "Form B3 submitted on 27th appears on K84 (Daily Notice) - will appear on next month's K84" on Tuesday the 28th, "K84 monthly generated-K84 (Daily Notice) of 14th appears on statement" on Wednesday the 29th, and "K84 monthly - payment due" on Thursday the 30th.
Calendar for the month of April for an unidentified year beginning on Wednesday the 1st and ending on Friday, May 1st. The calendar shows goods released on Thursday the 2nd, and indicates that Form B3 should be presented for goods that were released on the 2nd on Thursday the 9th. It also shows Good Friday on the 10th and Easter Monday on the 13th. The calendar shows "Form B3 filed for goods released on the 2nd" on Tuesday the 14th. On Wednesday the 15th "K84 (daily Notice) generated for April 14th transactions $100 penalty" is shown. Also, on Friday the 17th, the calendar shows that goods are released and that Form B3 should be presented for these goods on Friday the 24th and Form B3 should be filed for the goods released on the 17th on Monday the 27th. The calendar also indicates on Tuesday the 28th that "Form B3 submitted on the 27th appears on K84 (Daily Notice) will appear on next month's K84" and "Late transaction payment is assessed". On Wednesday the 29th the calendar shows "K84 monthly generated-K84 (Daily Notice) of 15th appears on statement and includes $100 penalty". The calendar also shows that K84 monthly-payment is due on Thursday the 30th. Finally, the calendar shows that on Friday, May 1st "Date late transaction payment interest" begins.
Please complete the following with your payment for clients participating in the GST or Importer Direct Security Options.
Account Security No.: ______K84
Customs Broker Cheque Amount: $
Importer Cheques Amount: $
K21 During Billing Period:
Total Amount Received: $
Total Amount Outstanding: $
Breakdown of Outstanding Amount
Complete Only if Total Amount Outstanding is Greater Than Zero.
|Business Number||Transaction No.||Importer's Account Security No.||GST Option||Contact Name and Phone Number/Fax Number||Amount|
|89999 9999RM0001||12345612346123||45678||John Doe/613-999-9999/ 613-999-9999||$50,000.00|
This is not a prescribed form. Reproduction to meet your business requirements is permitted providing all information is included.
Assessment and Licensing Division
Customs Act, sections 31, 33, 35, 58, 59, 60, 74, 97 and 129
D17-1-5, February 17, 2010
Services provided by the Canada Border Services Agency are available in both official languages.