Stay CARM: 5 key changes to keep in mind

On Apil 19th, post-publication of this article, the Canada Border Services Agency (CBSA) provided an update on its plans for the launch of the CBSA Assessment and Revenue Management (CARM) digital initiative. The CBSA now intends to reschedule the launch for trade chain partners to October 2024. The internal launch of CARM will still commence at the CBSA from May 13^th. The full press release can be found here.

Our view on CARM

Where importer security bonds have previously been optional and only related to duty, CARM will mean all importers must obtain a bond to cover both duties and taxes moving forward. At a time when business is already difficult and margins are shrinking, CARM could end up adding complexity and reducing affordability, especially for smaller or infrequent importers. In recent weeks, Landmark Trade Services has worked with industry leaders to petition the Standing Committee on International Trade on behalf of importers, with the view that the CARM portal registration and bond requirements should remain optional.

Don’t get left behind

Pending any changes to the CARM release schedule and rules, it’s vital to be fully prepared. By understanding the new processes and system you can pro-actively change how you work and avoid unnecessary problems.

Under the assumption that CARM will be the standard system for commercial importers in its current format, we’ve put together five key facts about the new legislation:

1. You must register via the CARM portal by May 13th. You can do this here.

2. As one of our customers, when you sign up just nominate Landmark Trade Services as your Customs broker.

3. You will no longer be able to use your customs broker’s Release Prior to Payment (RPP) security to clear shipments prior to duty and tax payments. If you want to participate in the RPP program, you need to post your own security. There are two options for this:

1. A financial security instrument for 50% of your highest monthly accounts receivable, including GST. This requires a minimum financial security of $5,000 per import program.
2. A cash deposit of 100% of your highest monthly account receivable.
3. CARM will introduce new harmonized billing cycles. Payment due dates will be 10 weekdays (Monday to Friday, inclusive of holidays) after the 17th of the calendar month.
4. The CARM roll-out includes a 180-day transition period, designed to give importers and service providers time to adapt their security model and help to avoid issues at the border.

You can get more details about these considerations and the other requirements in the CARM features and benefits page here.

Preparation is the best way forward

While the introduction of CARM requires a change in mindset for commercial importers, getting to grips with the new legislation and adjusting your ways of working early is the best way to stay compliant – and stay ahead of the game.

Landmark Trade Services is your trusted partner in this. Our in house team of experts will guide you through the changes, so you can get on with what really matters - growing your business. Remember to register on the CARM portal by May 13th and nominate us as your customs broker.

Reach out to Landmark Trade Services for guidance