PART 8-ACCOUNTING GOODS AND PAYMENT FOR DUTIES AND TAX

Section 32 of customs act

contains the core legal rules that govern release, accounting, timing, and responsibility—making it one of the most important sections of the Customs Act for CCS professionals to understand and apply every day.

five business days

For all commercial goods, accounting data must be presented in hard copy or transmitted electronically, and accepted by the CBSA within __________after they were released.

CAD

Commercial Accounting Declaration

TYPE V

This type is used by an importer/owner to voluntarily declare goods that entered Canada without official customs release. 

Type of CAD

AB-This type is used to account for goods released on minimum documentation information. ( RMD, PARS,IID)

C-This type is used to obtain release and provide accounting at the same time

TYPE F-This type is used to account for goods imported into Canada through the CLVS stream

TYPE TT-This type is used to account for goods imported by a Customs Self Assessment (CSA)

TYPE V-This type is used by an importer/owner to voluntarily declare goods that entered Canada without official customs release. 

TYPE 13-This passage explains CAD Type 13, which is used when goods stored in a Customs Bonded Warehouse (CBW) need to be transferred or when ownership of the goods changes.

TYPE 20-This type is used to account for duty and taxes on goods taken out of the warehouse for use in Canada that were warehoused on CAD types 10 and 13.

TYPE 21-This type is used when goods that were warehoused on CAD types 10 and 13 are taken out of the warehouse, exported, damaged goods, shortages,

TYPE 30-This type is used for the transfer of ownership or title

CLVS TIME FRAME FOR ACCOUNTING THE GOODS

 accounting data must be provided to CBSA by the 24th day of the month following the month in which the goods were released.

Real case. If the CLVG goods were released on May 25,2026, the the accounting data must be provided to CBSA BY June 24,2026.

Time Frame for Accounting

Remember, accounting and payment are not synonymous terms in the Canadian customs world. Accounting is the process of calculating the duties and taxes owed, and submitting the information to the CBSA in a prescribed fashion.  Payment is the actual remittance of the money owed.

The accounting period starts on the first business day after the release date and does not include Saturdays, Sundays, and federal and provincial holidays.

 

 

A business day means a day other than a Saturday, Sunday, or holiday.

Customs broker/importers have until the end of day, on the fifth day to transmit their accounting data. If the data is submitted electronically on the fifth day, it must be received and validated by the CBSA before 11:59:59pm EST.

 

 

The day of release is considered day zero. If the goods are released on a

Saturday, Sunday, or holiday, the accounting period is calculated as if the release occurred on the first business day after the goods have been released

C288 and C331

the AMPS penalties for late accounting are______

32(2)(a)

Interim accounting is permitted as per Section______

of the Customs Act.

Interim accounting=release date

32(4)

Section______

of the Customs Act allows goods that have been imported by mail to be released prior to accounting and the payment of duties and taxes.

D17-1-10   

Further examples of how to complete CADs for different types of importations that can occur, are located in D Memorandum 

section 33

for commercial goods that are released under _____of the Customs Act, duties and taxes must be paid no later than the 10th weekday after the end of that billing period;

Release between May 18 to June 17,2026--payment due July 1st,2026, but since July 1st is Canada day, due date will be pushed to next business day.

Transmitting the Data

As of October 21, 2024, CBSA decommissioned the CADEX (Customs Automated Data Exchange) system and implemented CARM (CBSA Assessment and Revenue Management). Using this system a customs broker or an importer is able to transmit accounting data to the CBSA.

 

Although importers are able to directly submit CAD information via the CARM Client Portal(CCP), most opt to use EDI as an alternative.

 

In more than 95% of commercial transactions, accounting data is provided to the CBSA using EDI.

As of October 21, 2024, CBSA decommissioned the CADEX (Customs Automated Data Exchange) system and implemented CARM (CBSA Assessment and Revenue Management). Using this system a customs broker or an importer is able to transmit accounting data to the CBSA.

 

Although importers are able to directly submit CAD information via the CARM Client Portal(CCP), most opt to use EDI as an alternative.

 

In more than 95% of commercial transactions, accounting data is provided to the CBSA using EDI.

the billing period

in respect of commercial goods, is the period that begins on the 18th day of a month and ends on the 17th day of the following month; which means that any goods released on the 18th day of a month or the 17th day of the following month are included in the billing period. 

$5,000.00

Monthly account balances of more than _____ are not accepted at ports of entry

Courier/Low Value Shipment (CLVS) Program

You should recall from Part 7, Module 7.1 Lesson 3 that the CLVS program allows for a unique method of release, the cargo/release list.

 

It also allows for a special accounting process, called an F Type.

 

The F Type is also referred to as a consolidated accounting, a consolidated entry or simply a consolidation. 

 

Earlier in this lesson, we reviewed the time frame for accounting for goods. For goods listed on the consist sheet and released under the CLVS program, accounting data must be provided to CBSA by the 24th day of the month following the month in which the goods were released.

 

For example, goods released on February 10, 15 and 27 must be accounted for by March 24. 

Courier Import Remission Order (CIRO)

Goods from the US and Mexico valued between $40.01 and $150.00 CAD, are accounted for using the correct classification number indicated in the Customs Tariff and special authority code 85-2955-3. 0000.99.99.00 cannot be used when a special authority, permit or license applies

Penalties

he following penalties apply to late accounting: C244, C246, C288, C330, and C331.

 

The differences in these penalties are based on:

• the type of accounting document,

• the value of the goods, and

• the status of the importer.

 

C244 and C246 are specific to CSA importers, while C330 is for CLVS goods that are not consolidated entries.  

 

Let's have a look at C288 and C331, which would be more commonly seen by importers and customs brokers.

 

C288

 

This penalty, reproduced below, is assessed against the importer when the accounting information has not been submitted within the legislated five day time frame.

 

You should note that this penalty is assessed against the importer, regardless of the party that was responsible for late accounting.

C331-CLVS

 

This penalty, reproduced below, can be assessed against the importer or the courier when the goods are included on an F Type and the accounting information has not been submitted by the 24th day of the month following their month of release.

The Payment of Duties

Section 33 of the Customs Act allows for goods to be released prior to the payment of duties and taxes, when certain conditions have been met. Once the goods have been released, duties and taxes must be paid by the party who accounted for the goods.