This bulletin to inform Trade Chain Partners (TCPs) of the importance of using the correct reason code order when submitting CAD adjustments (as single CAD adjustments or via Mass Adjustment case).
When adjusting a CAD line for more than one reason, the reason codes must be entered in the correct order to avoid the underpayment or overpayment of interest.
Refunds: If the adjustment results in a refund, the reason code and trade program code that supports the refund request must be entered first.
Example 1: An adjustment is made to reclassify a commodity resulting in a higher duty rate for which a preferential tariff treatment is applied, resulting in a refund.
The correct reason code order is R2-74-1-TT (or applicable reason code) followed by R2-32-2.TC.
Example 2: An adjustment is made to reclassify a commodity from surtax-subject to surtax non-subject, resulting in a refund of surtax.
The correct reason code order is R2-74-1-G-53 or R2-74-1-GR-53 (if OIC is claimed) followed by R3-32-2.TC.
Receivables or non-revenue: If the adjustment results in an amount owing to the CBSA or is revenue neutral, the reason code and trade program code that supports the amount owed or non-revenue change must be entered first.
Example 3: An adjustment is made to increase the Value for Duty of a commodity line while reclassifying the commodity to a tariff classification subject to a lower duty rate, resulting in an amount owing to the CBSA.
The correct reason code order is R3-32.2.VFD followed by R2-74-1-E.TC.
Refund requests submitted with the incorrect reason code order will be rejected by the CBSA and time limits will not be protected. See CARM Bulletin 5415 - Upward Adjustments using an incorrect reason code, regarding the submission of receivable adjustments using an incorrect reason code.
For further information on the reason codes available to TCPs, refer to Appendix A pages 15-23 of the Memorandum D17-2-1: Adjusting Commercial Accounting Declarations.
Effective date: February 2, 2026
Link: https://ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca/en/public-bulletins