CARM | Glossary of Terms and AcronymsAccounts Receivable Ledger (ARL) – the official system of commercial accounting and payment used by CBSA. The ARL was introduced in 2016 as the first step in the CARM transition and will be replaced in 2022.
Advance Ruling – a ruling issued by CBSA on the tariff classification of specific commodities.
B2 and B3 – the accounting documents used under the current system to declare a shipment or request an adjustment, both of which will be replaced under CARM by the CAD.
Broker-Backed Security – a financial security arrangement where the importer’s duties and taxes are secured by their Customs Broker’s import bond. This type of security will no longer be accepted under CARM.
Business Account Manager (BAM) – a primary CCP user with complete administrative access and functionality who registers and sets up the business account on the CCP, requests and establishes access to client accounts, and delegates access to all other subsequent CCP users.
Business Number – a nine-digit number assigned by the CRA to identify a business. The business number is used to identify which party is responsible for paying duties and taxes.
CARM – CBSA Accounting and Revenue Management, the system that will be used to manage and account for commercial imports into Canada. Limited functionality was introduced in March 2021, and the system will be fully operational and mandatory to use by Spring 2022.
CARM Client Portal (CCP) – the interface system for importers and their designated agents to use CARM.
Cash Bond – a bond posted directly with ready cash, instead of through a surety company, which is held by CBSA as a guarantee of future payment.
CBSA – Canada Border Services Agency, the federal agency that administers border control, immigration and customs services in Canada.
Commercial Accounting Declaration (CAD) – the digital document which is submitted to CBSA to declare and account for goods imported into Canada. The CAD will replace the current forms B2 and B3 in 2022.
Customs Broker Summary Statements (CBSS) – a statement issued by CBSA to a customs broker containing accounting summaries for all the importers for which the broker has submitted import declarations.
Daily Notice – daily statements issued by CBSA summarizing the import and accounting activity of a business. Currently, DN’s are issued to customs brokers, but after CARM Release 2 they will be issued directly to importers through the CCP, and will be visible to customs brokers who have been granted CCP access.
Editor – a CCP user who is authorized to create, view or edit transaction information within an RM program account but cannot manage other employees’ access.
Financial Security – cash or a bond which is posted with CBSA to guarantee future payment. This security protects CBSA from any losses if the importer fails to remit their outstanding payables after the goods enter Canada and is required for RPP.
GCKey – the secure sign-in system used to access the CCP. The GCKey can also be used to access other government services, such as a personal Revenue Canada account.
High-Value Shipment – a shipment valued at over $3300 CAD.
Importer Direct Security – a financial security arrangement where an importer posts their own security with CBSA, rather than using security posted by their customs broker.
Importer Extension Number – a program extension issued against a business number by the CRA that identifies the business as a registered importer. A single business number can be associated with a number of programs, such as the RT program for GST. An importer extension number is composed of the 9-digit business number plus an RM identifier (e.g., 123456789RM0001). The business number with the program identifier is sometimes referred to as a BN15.
Low-Value Shipment – a shipment valued at under $3300 CAD.
Nudge – an alert issued by the CBSA through the CCP to notify the BAM(s) that there is an issue with their financial security.
Orphan – SEE Unassociated user
Proxy Business Account Manager (P-BAM) – SEE Third Party Business Account Manager
Proxy Program Account Manager (P-PAM) – SEE Third Party Program Account Manager
Pre-authorized Debit – a payment system available through the CCP where funds are automatically withdrawn from a bank account with the user’s prior authorization.
Program Account Manager (PAM) – a CCP user who can create, view and edit all the transactions within a designated program. A PAM has to be authorized by a BAM, and can grant access to other users as Editors or Readers.
Reader – a CCP user who can view the information within a single program but cannot alter or submit anything.
Release Prior to Payment (RPP) – the ability to have goods released into Canada before the duties and taxes payable on them have been remitted. RPP privileges are assigned at the discretion of CBSA, and require the importer to post financial security.
Single Entry Bond – a bond which provides financial security for a single shipment only.
Statement of Account (SOA) – a monthly statement issued by CBSA summarizing the customs transactions of the previous month for a single importer. Currently, SOA’s are issued to customs brokers, but after CARM Release 2 they will be issued directly to importers through the CCP, and will be visible to customs brokers who have been granted CCP access.
Surety Bond – a bond guaranteed by a surety company. This means that if an importer imports goods using a surety bond as financial security and then defaults on payment of the duties and taxes, the bond company will pay the debt to CBSA.
Third Party Business Account Manager (P-BAM) – a CCP user who has been granted access to another company’s business CCP as a non-employee, and who has similar access to that CCP as a BAM. For example, a customs broker who is operating on behalf of an importer may be granted P-BAM access by a BAM. P-BAM’s have additional limitations that BAM’s do not; for example, they cannot see some payment information, such as credit card numbers, and do not have access to information about other CCP users within the company.
Third Party Program Account Manager (P-PAM) – a CCP user who has been granted access to another company’s business CCP as a non-employee, and who has similar access to that CCP as a PAM. Like a PAM, a P-PAM can create, view and edit all transactions and can grant access to other users as Editors or Readers. Like a P-BAM, they are subject to additional restrictions on the information they have access to. Unlike a BAM or P-BAM, a P-PAM can only operate within the program they have been assigned to.
Unassociated User – a CCP user whose personal profile has not been linked with any business accounts.
By Robin Smith, M.A., CCS
– Robin is a trade industry professional based in Victoria, BC.
Accounts Receivable Ledger (ARL) – the official system of commercial accounting and payment used by CBSA. The ARL was introduced in 2016 as the first step in the CARM transition and will be replaced in 2022.
Advance Ruling – a ruling issued by CBSA on the tariff classification of specific commodities.
B2 and B3 – the accounting documents used under the current system to declare a shipment or request an adjustment, both of which will be replaced under CARM by the CAD.
Broker-Backed Security – a financial security arrangement where the importer’s duties and taxes are secured by their Customs Broker’s import bond. This type of security will no longer be accepted under CARM.
Business Account Manager (BAM) – a primary CCP user with complete administrative access and functionality who registers and sets up the business account on the CCP, requests and establishes access to client accounts, and delegates access to all other subsequent CCP users.
Business Number – a nine-digit number assigned by the CRA to identify a business. The business number is used to identify which party is responsible for paying duties and taxes.
CARM – CBSA Accounting and Revenue Management, the system that will be used to manage and account for commercial imports into Canada. Limited functionality was introduced in March 2021, and the system will be fully operational and mandatory to use by Spring 2022.
CARM Client Portal (CCP) – the interface system for importers and their designated agents to use CARM.
Cash Bond – a bond posted directly with ready cash, instead of through a surety company, which is held by CBSA as a guarantee of future payment.
CBSA – Canada Border Services Agency, the federal agency that administers border control, immigration and customs services in Canada.
Commercial Accounting Declaration (CAD) – the digital document which is submitted to CBSA to declare and account for goods imported into Canada. The CAD will replace the current forms B2 and B3 in 2022.
Customs Broker Summary Statements (CBSS) – a statement issued by CBSA to a customs broker containing accounting summaries for all the importers for which the broker has submitted import declarations.
Daily Notice – daily statements issued by CBSA summarizing the import and accounting activity of a business. Currently, DN’s are issued to customs brokers, but after CARM Release 2 they will be issued directly to importers through the CCP, and will be visible to customs brokers who have been granted CCP access.
Editor – a CCP user who is authorized to create, view or edit transaction information within an RM program account but cannot manage other employees’ access.
Financial Security – cash or a bond which is posted with CBSA to guarantee future payment. This security protects CBSA from any losses if the importer fails to remit their outstanding payables after the goods enter Canada and is required for RPP.
GCKey – the secure sign-in system used to access the CCP. The GCKey can also be used to access other government services, such as a personal Revenue Canada account.
High-Value Shipment – a shipment valued at over $3300 CAD.
Importer Direct Security – a financial security arrangement where an importer posts their own security with CBSA, rather than using security posted by their customs broker.
Importer Extension Number – a program extension issued against a business number by the CRA that identifies the business as a registered importer. A single business number can be associated with a number of programs, such as the RT program for GST. An importer extension number is composed of the 9-digit business number plus an RM identifier (e.g., 123456789RM0001). The business number with the program identifier is sometimes referred to as a BN15.
Low-Value Shipment – a shipment valued at under $3300 CAD.
Nudge – an alert issued by the CBSA through the CCP to notify the BAM(s) that there is an issue with their financial security.
Orphan – SEE Unassociated user
Proxy Business Account Manager (P-BAM) – SEE Third Party Business Account Manager
Proxy Program Account Manager (P-PAM) – SEE Third Party Program Account Manager
Pre-authorized Debit – a payment system available through the CCP where funds are automatically withdrawn from a bank account with the user’s prior authorization.
Program Account Manager (PAM) – a CCP user who can create, view and edit all the transactions within a designated program. A PAM has to be authorized by a BAM, and can grant access to other users as Editors or Readers.
Reader – a CCP user who can view the information within a single program but cannot alter or submit anything.
Release Prior to Payment (RPP) – the ability to have goods released into Canada before the duties and taxes payable on them have been remitted. RPP privileges are assigned at the discretion of CBSA, and require the importer to post financial security.
Single Entry Bond – a bond which provides financial security for a single shipment only.
Statement of Account (SOA) – a monthly statement issued by CBSA summarizing the customs transactions of the previous month for a single importer. Currently, SOA’s are issued to customs brokers, but after CARM Release 2 they will be issued directly to importers through the CCP, and will be visible to customs brokers who have been granted CCP access.
Surety Bond – a bond guaranteed by a surety company. This means that if an importer imports goods using a surety bond as financial security and then defaults on payment of the duties and taxes, the bond company will pay the debt to CBSA.
Third Party Business Account Manager (P-BAM) – a CCP user who has been granted access to another company’s business CCP as a non-employee, and who has similar access to that CCP as a BAM. For example, a customs broker who is operating on behalf of an importer may be granted P-BAM access by a BAM. P-BAM’s have additional limitations that BAM’s do not; for example, they cannot see some payment information, such as credit card numbers, and do not have access to information about other CCP users within the company.
Third Party Program Account Manager (P-PAM) – a CCP user who has been granted access to another company’s business CCP as a non-employee, and who has similar access to that CCP as a PAM. Like a PAM, a P-PAM can create, view and edit all transactions and can grant access to other users as Editors or Readers. Like a P-BAM, they are subject to additional restrictions on the information they have access to. Unlike a BAM or P-BAM, a P-PAM can only operate within the program they have been assigned to.
Unassociated User – a CCP user whose personal profile has not been linked with any business accounts.
By Robin Smith, M.A., CCS
– Robin is a trade industry professional based in Victoria, BC.
