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CARM Glossary of Terms

Glossary of Terms

This program enables the Canada Border Services Agency (CBSA) to receive electronic information about cargo before its arrival in Canada. It equips CBSA officers with essential data, allowing them to proactively identify and manage potential threats to health, safety, and security associated with incoming commercial goods.

An API is a set of protocols and tools for building software applications. It specifies how software components should interact, including instructions for accessing web-based services. It allows different programs to communicate with each other, defining the process for making requests, data handling methods, and conventions to be followed.

This service by the CBSA provides definitive guidance on the tariff classification of goods before importation. By offering detailed information on the classification of specific goods, these rulings ensure importers use the correct tariff number, validated by CBSA, and remain effective until modified or overturned.

Launched in 2016 as part of the CBSA Assessment and Revenue Management (CARM) project, the ARL serves as the primary system for managing commercial accounting and payment processes at CBSA. This system represents a significant step towards modernizing and streamlining commercial payment methodologies.

This 5-digit number is assigned to Importers and Customs Brokers involved in the Release Prior to Payment (RPP) system. It plays a crucial role in the Release on Minimum Documentation (RMD) process, initially being part of the Transaction Control Number to identify the bondholder. With the advent of CARM Release 2, ASEC's role has evolved, focusing on identifying the Customs Broker or Importer responsible for the shipment's clearance.

Acting as the chief administrator within the CCP, the Business Account Manager has comprehensive access and control over the CCP functions. Responsibilities include registering the business account, managing access requests, and authorizing other CCP users within the business entity.

This 9-digit identifier, assigned by the Canada Revenue Agency (CRA), is crucial for businesses involved in importing or exporting. It represents the legal entity responsible for managing duty and tax obligations, as well as handling any incurred penalties.

An extension of the Business Number, this 15-digit number, also assigned by the CRA, specifically relates to import/export activities. Known as the RM account, it serves as a unique identifier for businesses engaged in cross-border trade.

Designed to supersede existing B3 and B2 documents, the CAD is a digital interface for submitting accounting data to CBSA. It simplifies the process by consolidating various document types into a single, comprehensive record, thereby enhancing the efficiency and accuracy of customs accounting.

A new feature under the CARM initiative, this statement replaces the Customs Broker SOA. It provides a consolidated accounting summary for all importers represented by a customs broker, detailing the import declarations and payment transactions during a specific billing period.

A pivotal component of the CARM project, the CCP serves as the primary interface between CBSA and trade chain partners. It offers comprehensive online services for managing customs transactions, including the submission of corrections, classification requests, accounting processes, and duty and tax payments.

This expedited program is specifically designed for the clearance of low-value express shipments. Participating couriers, authorized by the CBSA, can expedite the release of qualifying goods through a simplified cargo/release list process.

A streamlined program offered by CBSA for low-risk importers. CSA enables these importers to self-manage their import accounting processes, facilitating a more efficient and rapid customs clearance process while ensuring compliance with revenue reporting and duty payments.

This term refers to commodities like electricity, oil, and natural gas, which are constantly in transit through wires, pipelines, or conduits. The CTC classification acknowledges the unique nature of these commodities in terms of transport and handling.

In the CCP context, this term refers to the process wherein Business Account Managers assign specific access rights to employees for managing business and program accounts, ensuring controlled and authorized access to sensitive information and functions.

A comprehensive statement issued by the CBSA that consolidates various transaction types for better account management. It includes information on payments, interest, credits, and disbursements, facilitating effective reconciliation and deadline management at the business number level.

This is a key document issued by the CBSA that outlines the detailed requirements for business systems and processes associated with new or amended electronic transactions. It serves as a guideline for stakeholders when there are changes or additions to CBSA programs.

This is a key document issued by the CBSA that outlines the detailed requirements for business systems and processes associated with new or amended electronic transactions. It serves as a guideline for stakeholders when there are changes or additions to CBSA programs.

A system that enables the standardized electronic exchange of data between different businesses and organizations. EDI facilitates efficient and accurate communication of business documents and information, adhering to established formats and standards.

An ambitious multi-year initiative aimed at overhauling the methods of duty and tax collection for goods imported into Canada. CARM introduces a more streamlined and efficient process, featuring electronic payment options. The first phase of CARM was implemented in May 2021.

Within the CCP, an Editor has the capability to create, view, and modify all transactional information for their employer’s or importer client's RM program accounts, playing a key role in data management and accuracy.

This term applies to a CCP user whose status becomes inactive due to the termination of the business relationship between the importer and the customs broker within the portal.

An important aspect that has undergone changes with CARM Release 2, requiring all importers participating in the RPP program to post financial security with CBSA. This security can take various forms, such as cash bonds or surety bonds.

This term encompasses various documents like the Daily Notice, Statement of Account, and Customs Broker Summary Statement, providing a comprehensive overview of financial transactions and statuses.

What does GCKey mean in Canada?

GCKey is a Government of Canada service that issues credentials (username and password) that are used to access (or log in to) federal government services online. The GCKey service can be used by clients who do not have, or choose not to use a credential they may have with one of the Sign-In Partners.

This category includes commercial goods with a declared value exceeding $3,300 CAD, requiring specific handling and processing due to their high value.

Refers to any individual or business entity responsible for bringing commercial goods into Canada. The importer is accountable for accurate customs declarations, payment of duties and taxes, and ensuring compliance with all import regulations and requirements.

This broad term encompasses all aspects of technology related to computing, including hardware, software, networking, and internet technologies, as well as the professionals who work in these areas.

This classification applies to commercial goods with a declared value below $3,300 CAD, often subject to different processing and clearance procedures due to their lower value.

An official statement issued by the CBSA that provides clarity on how customs laws are applied to specific imported goods. NCRs offer guidance on issues like origin determination, valuation, and marking under various customs programs.

A feature in the CCP that issues alerts to users regarding issues or required actions related to the financial security status of an account.

A convenient method for automatic bill payments and other financial transactions. With PAD, payments are automatically withdrawn from a bank account as per prior authorization, streamlining the payment process.

This role within the CCP involves managing program-specific (BN15) registration information, granting access rights to employees, and overseeing all transactional information for a specific program or assigned BN15.

Refers to locations like airports, seaports, or land border crossings where individuals and goods are authorized to enter or exit Canada.

This term specifically relates to a BN15 account, which is used for import activities and is associated with a specific RM identifier.

The initial phase of the CARM project, introducing new tools for business account management and visibility of amounts owed to the CBSA. Key features include the CARM Client Portal with self-service capabilities for invoicing and payments. The launch of Release 1 was scheduled for May 2021.

The second phase of the CARM project, set to introduce a new electronic commercial accounting declaration, replacing existing customs forms. It also aims to streamline payment and billing processes, facilitating easier corrections and adjustments. The planned release date for Release 2 was May 2022.

A designated role within the CCP, Readers have the ability to view all transaction information in RM program accounts but cannot create or edit information. This role is essential for ensuring information transparency while maintaining data integrity.

This notice alerts clients when the Canada Border Services Agency (CBSA) authorizes the removal of goods from CBSA facilities, sufferance warehouses, bonded warehouses, or duty-free shops for domestic use in Canada.

Under the Canada-United States-Mexico Agreement (CUSMA), there is a provision for complete duty drawback or postponement for goods exported in the same state as they were imported. Even after undergoing certain processes in Canada, these goods can still qualify as being exported in their original condition.

Statements of Account are issued to all Trade Chain Partners (TCPs) engaged in financial transactions with the CBSA. These statements summarize the transactions recorded on the TCP’s account in the CARM system, for which the account holder is responsible for payments.

The TCCU at the CBSA serves as the primary contact for queries related to the transmission of commercial electronic data. They provide guidance and support for technical issues.

A Trade Chain Partner refers to any business entity directly involved in the importation or international movement of goods across borders.

This term describes an individual who has registered a personal profile on the CARM Client Portal but has not yet been linked as an employee to a specific business entity.

With the CAD's implementation, any corrections and adjustments are documented as new versions of the original CAD. The transaction number from the initial CAD is retained throughout all versions, and a complete record of all versions is maintained for audit purposes.

The value for duty represents the base amount used to calculate any duties owed on imported goods. This value is essential not only for duty calculation but also for determining applicable taxes such as Goods and Services Tax, Provincial Sales Tax, or Harmonized Sales Tax, even in cases where no duty is owed.

NOTE: All details pertaining to CARM R2 processes are based on the current information available at the time of writing. As this is subject to change, it’s recommended you periodically check in with the CBSA or your customs broker.