Accounts Receivable Ledger (ARL) Project CCLA Presentation Accounts Receivable Ledger (ARL) Project July 22, 2015

ARL Context The CBSA has committed to system modernization and process improvement. The CBSA Assessment and Revenue Management (CARM) project supports this goal through: the introduction of new payment options; and the ability to register, conduct revenue assessment activities and manage accounts online, by reducing red tape and automating key business processes. The Accounts Receivable Ledger (ARL) solution is a foundational component of the CARM project and will be implemented in January 2016.

ARL Overview ARL provides: A fully integrated and centralized commercial client-based accounting system; Enhanced electronic Daily Notices (DNs) & Monthly Statements of Account (SOAs); Off-setting credits against debits to reduce the number of refunds; and, ePayment and internet banking options for commercial clients. ARL will not change the following: File transmission times will remain the same: DNs daily as required, and SOAs monthly, which replace the current K84 process. Statements can still be sent to brokers via the broker’s EDI connection.

ARL Status Update ARL was divided into three components to minimize risk: Client Master Data (CMD) Client Master Data profile created to populate the system Target Date: April 2015 Status: Complete ePayment for CSA Clients Enables Customs Self-Assessments (CSA) clients to pay CBSA electronically through a participating financial institution Target Date: April 2015 Status: Complete ARL Introduces an integrated client-based accounting system Target Date: January 25th, 2016 Status: On track

Trade Chain Partner Readiness Activities Mar ‘15 Apr May Jun Jul Aug Sep Oct Nov Dec Jan ’16 Feb Mar CBSA Engagement and Support Activities to TCPs System & Business Process Changes TCPs implement new code changes by Jan 23, 2016 Testing Registration ARL Go-Live (Jan 25, 2016) Testing / Certification Window First DN (Jan 26, 2016) First SOA (Feb 25, 2016) Focus TCP Readiness Activities CBSA Engagement and Support Activities to TCPs CBSA will provide readiness support and communications through the ARL Readiness Working Group, BCCC CARM Sub-committee and other avenues (e.g. CARM Mailbox, ARL Readiness Enablement Calls, Association outreach). System & Business Process Changes Initiate system (code) and business process changes (as required) based on ARL Reference Manual and the ECCRDs (Technical Specs). Testing Registration Complete and submit the Testing Application Form and return to TCCU by mail. Once reviewed and approved, TCCU will distribute testing packages including ARL Reference Manual and ECCRDs. Testing / Certification Window Conduct testing starting in September 2015 and become certified.

Cutover Schedule January Sun 17 Fri 22 Sat 23 Mon 25 Tue 26 Wed 27 Th F S Su M T W Th F S Su M T W Th F S Su M T W Th F S 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 Sun 17 Fri 22 Sat 23 Cutover code activation (CCS to ARL) Last daily K84 produced ARL Release ARL goes live and becomes official system of record  Mon 25 Tue 26 Wed 27 Thu 28 Fri 29 ARL No ARL DN Last daily K84 printed (Fri data) TCPs to be notified of successful go-live) ARL First ARL DN (Sat, Sun, Mon data) ARL begins accepting payments, processing refunds ARL Second ARL DN (Tues data) Last monthly K84 sent electronically in evening ARL Third ARL DN (Wed data) Last monthly K84 available on paper ARL Fourth ARL DN (Thurs. data) Final payments for K84 accepted Due date for K84 payment

Cutover Recommendation Implement necessary code changes by January 23rd Keep old code intact to continue to receive electronic K84 for the month of January Receive electronic DNs beginning on January 26th Keeping old code intact also provides a contingency in case of cutover issues

Payments & Refunds During Transition Final payments in legacy system: Payments against monthly K84s can be made on the 28th or the 29th of January; after this date, all payments - including any late payments on monthly K84’s – will be made in ARL Payments against B3s or daily K84s from the January billing period can be made until the 22nd of January; after this date, payments will be applied using ARL, and will be processed within the new (February) billing period Since refunds take several days to process through the system, new refund requests will be halted one week in advance of go-live; i.e. refund requests will not be processed from January 17th to January 24th.

ARL Impacts: New Statement Content The daily and monthly K84s are being replaced by a new Daily Notice (DN) and a new monthly Statement of Account (SOA). The current K84s only list B3 transactions and LAPs. The new importer statements will contain multiple transaction types including: payments made, interest owing, and refunds issued. The new SOA shows monthly totals, enabling account-level management and reconciliation, and helping to manage payment by due dates. Brokers will receive DNs and SOAs sectioned by importer instead of one statement per ASEC number, while importers will receive a DN / SOA at the BN15 account level. The new SOAs will be produced and distributed more rapidly, providing a more consistent interval between the statement being issued and the payment due date.

ARL Impacts: New Statement Format Current statements only provide B3 transactions and LAPs New Statements: Display summary information Include new content Group transactions to make due dates clearer Optional XML format can be opened in Excel

TCP Communication & Engagement The success of the ARL project is contingent on adoption of the ARL solution by the trade chain partner (TCP) community. The CBSA is committed to providing readiness support and communications through the ARL Readiness Working Group, BCCC CARM Sub-committee, and other avenues. The ARL Readiness Working Group was chartered to ensure the project has effective two-way communications channels in place with the TCP community to support ARL adoption.

TCP Engagement Plan BCCC / BCCC Sub- committee Representatives Go-live Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 BCCC / BCCC Sub- committee Representatives BCCC Meetings BCCC Sub-committee Meetings and Calls ARL Readiness Working Group General Audiences Information Sessions (TBD) Information PDFs for Web Posting Provide FAQs Update FAQs (as required) Pulse Survey (TBD) Technical Audiences ECCRDs & Reference Manual Registration Form & Test Package Technical Support & ARL Readiness Enablement (Open Mic) Calls (TBD) Financial / Accounting Audiences K84 Messaging Sample Statements ARL Readiness Enablement (Open Mic) Calls (TBD)

CARM Mailbox: CBSA-ASFC_CARM.GCRA@cbsa-asfc.gc.ca What Do I Need to Do? March to December: Make necessary system and process changes Using the sample statements and information provided in the Electronic Commerce Client Requirements Document (ECCRD), configure your system to accept the new statements Adjust accounting/statement reconciliation process steps to take advantage of the new statement information July: Register for testing/certification Determine the preferred format to receive your statements Complete your Testing Application Form and return to the Technical Commercial Client Unit (TCCU) Once reviewed and approved, TCCU will distribute the testing package September to January: Complete testing/certification Access the testing environment and certify your system CARM Mailbox: CBSA-ASFC_CARM.GCRA@cbsa-asfc.gc.ca If you have not received a registration form email the Technical Commercial Client Unit at TCCU-USTCC@cbsa-asfc.gc.ca