How to determine the declaration type required on the CAD

During the customs release process, the declaration type you select on the Commercial Accounting Declaration (CAD) determines when and how duties and taxes are accounted for.

There are several declaration types under the CBSA Assessment and Revenue Management (CARM) framework, and understanding their differences is essential for accurate accounting and compliance. 

In this article, we break down the main CAD declaration types to help you determine which one applies to your imports.

What declaration type means on the CAD

The declaration type describes the accounting scenario being reported to the Canada Border Services Agency (CBSA).

This includes whether the goods have already been released, whether duties and taxes are being paid immediately or deferred, and whether the goods are moving through a bonded warehouse.

Selecting the correct declaration type ensures that:

• Duties and taxes are calculated correctly
• Payment timing aligns with the release method used
• The transaction is recorded accurately in your CARM account

Determining which CAD declaration type applies to your goods

Each declaration type reflects a specific import scenario, such as whether goods have already been released, require payment to obtain release, are moving through a bonded warehouse, or fall under a special reporting case.

1. Standard accounting (post-release)

This applies to goods that have already been released and where accounting is submitted after release (often when the importer has RPP privileges).

• • Type AB (Standard): Used to account for goods after release (including goods released on minimum documentation) within five business days of the release date
  • Type TT (Trusted Trader): Specifically reserved for importers authorized under the Customs Self-Assessment (CSA) program

 2. Accounting to obtain release (pre-release)

This applies when accounting and payment are required before the CBSA authorizes the release of the goods.

• • Type C (Cash Entry): Applied when the importer does not have RPP financial security on file or chooses to pay duties and taxes at the time of release

 3. Customs bonded warehouse (CBW)

These declaration types apply to goods where duty and tax liability is being deferred or managed under bond.

• • Type 10 (in-bond): Submitting documentation to enter goods into a CBW
  • Type 13 (transfer): Moving goods from one CBW to another
  • Type 20 (ex-bond for consumption): Removing goods from a CBW for use or sale in Canada (duties and taxes become payable)
  • Type 21 (ex-bond for export): Removing goods from a CBW for export out of Canada (generally, no duties are payable when goods are removed for export)
  • Type 30 (transfer of ownership/title): Documenting a change of ownership or title of goods under bond (if the goods are also being physically moved to a different facility, a Type 13 must be used along with the Type 30)

4. Exceptional and consolidated reporting

These specific codes are used for non-standard or specialized accounting scenarios.

• • Type V (Voluntary): Used for the voluntary accounting of goods that entered Canada without official customs release
  • Type F (CLVS): Used by approved couriers under the Courier Low Value Shipment program

How we can help

At Cole International, we offer trade consulting and customs brokerage services to support Canadian importers with accurate accounting on their CADs. 

Our team works with importers every day to:

• Determine the correct CAD declaration type
• Confirm when duties and taxes are payable or deferred
• Ensure declarations are submitted accurately and in line with CBSA requirements

We don’t believe in guesswork. We get it right the first time.

Reach out to one of our trade professionals to make sure the correct CAD declaration type is applied to your shipment.