The CBSA Account 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. Are you ready for the changes? Visit our website to learn more: bit.ly/1M00go9

2. CBSA ARL Readiness
CBSA Account Receivable Ledger for Importers
October 28, 2015
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5. Questions and materials
Additional resources
For a limited time, access Livingston’s
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6. Candace Sider
Vice President, Regulatory Affairs Canada
Today’s Presenter

7. 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

8. An Overview of ARL

9. 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

10. 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

11. Impact to importers

12. Daily Notice – Importers that have their ownASEC
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

13. Importers that don’t have their ownASEC
`
● Status quo
● No change to current process
● Importers can obtain a copy of their statement at an ARL office

14. Daily K84 vs. Daily Notice
14
Current Statement (K84) New Broker Daily Notice* New Importer Daily Notice
DailyNoticeSections
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)
OtherTransactions
• 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
(These transactions are from the previous day and have
individual due dates)
Under
Review
• Not applicable (i.e. no
additional transactions)
All appealed transactions under broker ASEC
(These transactions are from the previous day and have individual due
dates)
All appealed transactions
(These transactions are from the previous day and have
individual due dates)
*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.

15. Company 101 2015-07-22
$3,334.06
BN/NE: 300300301RM0001 $250.00
B3 Field 6 champ
6 If/si "I" / "G"
Document Type
Type de
document
Release
Date de
mainlevée
Port
Bureau
Document #
No du document
Customs Duties
Droits de
douanes
SIMA
LMSI
Excise Tax
Taxe
d'accise
GST/PST/HST
TPS/TVP/TVH
Others
Autres 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 Date
Date du
document
Document Type
Type de
document
Document #
No du document
Payment Due Date
Date d'échéance Total
2015-07-21 B2-1, AR/CR
87451151645820
87451000000201
2015-08-20 2,295.41
2015-07-21 K23 202403P 2015-07-31 50.85
2015-07-21 NPA/ACP 158261 2015-08-20 500.00
2015-07-21 NSF/SP 7056748 2015-07-21 25.00
Document Date
Date du
document
Document Type
Type de
document
Document #
No du document
Payment Due Date
Date d'échéance Total
2015-07-06 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
DRAF
T
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.

16. 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.

17. Monthly K84 vs. Statement of Account
17
Current Statement (K84) New Broker Statement of Account* New Importer Statement of Account
StatementofAccountSections
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
Section
• 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)
OtherTransactions
• Not applicable (i.e. no
additional 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
• Not applicable (i.e. no
additional transactions)
• 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

18. 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

19. 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.

20. 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. 21
Cutover Schedule
F S Su M T W Th F S TSu 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 25
ARL
• First ARL DN
(Sat, Sun, Mon
data)
• ARL begins
accepting
payments,
processing
refunds
Tue 26
ARL
• Second ARL DN
(Tues data)
• Last monthly
K84 sent
electronically in
evening
Wed 27
ARL
• 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

22. 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

23. 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

24. 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

25. Next Steps

26. 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 ARLproject@Livingstonint.com

27. Questions and materials
Additional resources
For a limited time, access Livingston’s
helpful resource materials by going to:
http://www3.livingstonintl.com/ARL-Rediness
Enquiries
RegAffairsCda@livingstonintl.com
Click the “+” to expand
the questions box
Type your question(s) here
Asking questions on GoToWebinar

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Date Topic
Nov 18 2015 Classification
Nov 19 2015 Canada European Union Comprehensive Trade Agreement
Nov 25 2015 CBSA Accounts Receivable Ledger Rediness
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