Duty & GST Payment
Importer Direct Payment options for duties and GST
Duties and GST on commercial import transactions can be paid by importers to the Canada Border Services Agency (CBSA) on a monthly basis through the GST Direct Payment option or the Importer Direct Security option.
With both options, the payment period will cover all transactions accounted for between the 25th of the previous month and the 24th of the current month, with payments due to CBSA by the last business day of the current month. The importer must pay any penalties or interest applied by the CBSA for late payment of duties and taxes.
Under this option, the importer makes a monthly GST payment directly to the Canada Border Services Agency (CBSA). To participate in this payment option, importers must complete a GST Direct Letter of Undertaking on company letterhead, signed and returned to Universal Logistics. Non-resident importers (importers outside of Canada) must post security with the CBSA for release prior to payment privileges (see Requirements for Importer Direct Security option).
Under the Importer Direct Security option, the importer makes a monthly duty and GST payment directly to the Canada Border Services Agency (CBSA). To participate in this payment option, the importer must:
- Complete a Direct Security Letter of Undertaking on company letterhead, signed and returned to Universal Logistics.
- Post security with the CBSA for release prior to payment privileges. Security can be provided in the form of cash, certified cheque, money order, or release of goods bond (D120 Customs Bond) issued by either a surety or financial institution. Security should be posted in the legal entity name associated with the importer’s Business Number. Security for resident importers is based on their average monthly duties and taxes owing (less the GST), up to a maximum of CAN$10 million. Security for non-resident importers is based on their average monthly duties and taxes owing (including GST), up to a maximum of CAN$10 million.
Most importers choose to post security by way of a D120 Customs Bond and will receive their own Account Security (ASEC) number. If you need help to place and secure the required bond and register your ASEC number with CBSA under the Importer Direct Security option, contact us today.
E-payment options
The Canada Border Services Agency (CBSA) is encouraging customs brokers and importers to remit their Duty and GST payments electronically, either by online banking or electronic data interchange (EDI). Making this change is recommended for three important reasons:
- Electronic payment is easier and simpler than manual payment
- Paying by online banking or EDI is the best way to ensure your payment is received on time and error free
- Mandatory electronic payment is coming soon
Duty and GST Payments will continue to be due on the last business day of the month, unless specified otherwise. Making payment at least one day before the last business day of the month is recommended as some payments are not processed until the next working day. Payment amounts will be applied against the importer’s account balance.
Payment by On-line banking
- On-line banking is a simple and cost effective e-payment solution.
- Prior to setting up on-line banking with your Financial Institution (FI), you should confirm that your e-payment transfer limits are sufficient to cover your monthly duty and/or GST payments.
- Clients paying using on-line banking will receive a payment confirmation number from their FI.
Importers can make electronic payments through participating Financial Institutions if they:
- Make payment by cheque
- Make payments for GST under the GST Direct Payment Option
- Have their own account security and pay their own duties and taxes
To use the on-line banking option, visit the website of your financial institution and enter your business number (BN15, e.g. 123456789RM0001) as the account number, not the Canada Revenue Agency RT account number. Note, as well, that the wording for the CBSA Payee link varies by financial institution:
| Financial Institution | CBSA Payee Name on Internet Bank Site |
|---|---|
| BMO – Bank of Montreal | Canada Border Services Agency |
| Bank of America | Canada Border Services Agency |
| CIBC | CBSA Customers / ASFC Douanes |
| Citibank | Canada Border Services Agency |
| HSBC | CBSA Importer / Importateur de L’ASFC |
| National Bank | Canada Border Services Agency / Agence des services frontaliers du Canada |
| Royal Bank of Canada | CBSA Duties, Taxes and Fees |
| Scotiabank | CBSA Duties, Taxes and Fees |
| TD Canada Trust | CBSA Duties, Taxes and Fees |
| Tangerine | Canada Border Services Agency |
The CBSA is currently in discussions with other Financial Institutions regarding EDI and on-line banking.
Payment by EDI
- Clients can use EDI to send their payment and payment instructions to the CBSA.
- Clients should contact their Financial Institution (FI) client relationship manager to inquire about setting up and testing the CBSA EDI payment capability.
- Only CBSA EDI certified FIs are able to offer CBSA EDI payment. This service is currently offered by Scotiabank, TD, Banque Nationale, RBC and BMO (which includes BMO, Citibank, Bank of America and Tangerine).
- The CBSA is currently in discussions with other Financial Institutions regarding EDI and on-line banking.
- To participate, the client must have a valid Business Number (BN) and have tested their data transmission with the participating FI.
Payment cut-off times are determined by each FI. Clients using the EDI payment method are responsible for knowing and adhering to their FI’s EDI cut-off time in order to avoid late payment.
Importers should consider paying CBSA by EDI if they are already using that option with other vendors. Here is how it works:
- Importer sends a EDI 820 remittance advice message to the importer’s Financial Institution.
- Financial Institution withdraws the payment amount from importer’s bank account and deposits it in the CBSA EPAY account (The date and time of your payment is set by when this step is completed, not when the importer made payment).
- Financial Institution sends the EDI 820 remittance advice to the CBSA who confirms receipt.
- The CBSA system posts the payment in the remittance advice to the account specified (importer’s BN15 account).
We are strongly encouraging all of our clients to prepare and opt in to one of these e-payment options as soon as possible. Once you do, please notify us accordingly. Universal will continue to send you your monthly Duty/GST Statement but we will require confirmation that you are remitting to CBSA electronically so we know not to follow up for a remittance through our services.
If you are interested in e-payments and have any questions about the set-up, please contact your Client Care Representative at Universal Logistics.
Once you have taken steps to enroll in on-line banking and you have contacted your Financial Institution to indicate CBSA as a payable contact, please submit the following form to confirm enrollment:
