CARM is here…don’t worry, we have you covered.

WHAT IS CARM?

The CBSA Assessment and Revenue Management project, better known as CARM, is a multi-year initiative that will modernize and streamline the process of importing commercial goods into Canada. It transforms the collection of duties and taxes for imported goods and improves consistency in applying trade rules and decisions. The shipment release process remains unchangged; however, importers will be required to post their own financial security in the form of a surety bond, or post a cash deposit in the CARM Client Portal with CBSA, and they will be responsible for paying duties and taxes directly to CBSA. 

CARM is coming…don’t worry, we have you covered.

*The CBSA has postponed CARM Release 2 until October 2023* 

WHAT IS CARM?

The CBSA Assessment and Revenue Management project, better known as CARM, is a multi-year initiative that will modernize and streamline the process of importing commercial goods into Canada. It will transform the collection of duties and taxes for imported goods and improve consistency in applying trade rules and decisions. The shipment release process will not change; however, importers will be required to post their own financial security in the form of a surety bond, or post a cash deposit in the CARM Client Portal with CBSA and be responsible for paying duties and taxes directly with CBSA. 

CARM is coming…don’t worry, we have you covered.

*The CBSA has postponed CARM Release 2 until October 2023* 

WHAT IS CARM?

The CBSA Assessment and Revenue Management project, better known as CARM, is a multi-year initiative that will modernize and streamline the process of importing commercial goods into Canada. It will transform the collection of duties and taxes for imported goods and improve consistency in applying trade rules and decisions. The shipment release process will not change; however, importers will be required to post their own financial security in the form of a surety bond, or post a cash deposit in the CARM Client Portal with CBSA and be responsible for paying duties and taxes directly with CBSA. 

CARM is coming…don’t worry, we have you covered.

*The CBSA has postponed CARM Release 2 until October 2023* 

WHAT IS CARM?

The CBSA Assessment and Revenue Management project, better known as CARM, is a multi-year initiative that will modernize and streamline the process of importing commercial goods into Canada. It will transform the collection of duties and taxes for imported goods and improve consistency in applying trade rules and decisions. The shipment release process will not change; however, importers will be required to post their own financial security in the form of a surety bond, or post a cash deposit in the CARM Client Portal with CBSA and be responsible for paying duties and taxes directly with CBSA. 

CARM is coming…don’t worry, we have you covered.

*The CBSA has postponed CARM Release 2 until October 2023* 

WHAT IS CARM?

The CBSA Assessment and Revenue Management project, better known as CARM, is a multi-year initiative that will modernize and streamline the process of importing commercial goods into Canada. It will transform the collection of duties and taxes for imported goods and improve consistency in applying trade rules and decisions. The shipment release process will not change; however, importers will be required to post their own financial security in the form of a surety bond, or post a cash deposit in the CARM Client Portal with CBSA and be responsible for paying duties and taxes directly with CBSA. 

KEY ASPECTS OF CARM

Online Portal:

The CARM Client Portal (CCP) allows importers to manage their accounts, make payments, and access other online services.

Release Prior to Payment:

Importers may need to provide Release Prior to Payment (RPP) financial security to have their goods released at the border before duties and taxes are fully assessed.

Increased Responsibility for Importers:

CARM shifts some responsibilities to importers, such as paying their duties and taxes directly to the CBSA and obtaining Release Prior to Payment (RPP) financial security.

Improved Consistency and Efficiency:

CARM aims to create a more consistent and efficient process for importers and the CBSA.

In essence, CARM is about modernizing how the CBSA manages the assessment and collection of duties and taxes for imported commercial goods, making it more efficient, transparent, and digital for all parties involved.

CARM REQUIREMENTS

Commercial importers in Canada must register their businesses in the CARM Client Portal and obtain financial security to participate in the Release Prior to Payment (RPP) program, allowing for the release of goods before paying duties and taxes. Importers are also responsible for managing their payments and accounting for imported goods through the portal.

Here is a more detailed breakdown:

1. CARM Client Portal Registration:

All commercial importers must register their business in the CARM Client Portal (CCP).
This is a mandatory step for all importers, as it allows them to transact with the Canada Border Services Agency (CBSA) and participate in programs like RPP.
Importers need to delegate authority to their customs brokers within the portal so that brokers can act on their behalf.

2. Financial Security:

Importers must provide financial security to the CBSA to participate in the Release Prior to Payment (RPP) program.
This security ensures that duties and taxes owed on imported goods will be paid.
Options for financial security include surety bonds or cash deposits.
Without RPP, goods will be held at the border until duties and taxes are paid in person.

3. Payment and Accounting:

Importers are responsible for making payments for duties and taxes to the CBSA.
They need to review and manage their accounting within the CARM system.
Delays in payment may lead to goods being held at the border.

4. Release Prior to Payment (RPP):

The RPP program allows importers to have their goods released at the border before paying duties and taxes.
It streamlines the importation process and reduces delays.
To participate, importers must register in the CCP and provide financial security.

5. Important Considerations:

Importers should review their delegation of authority to third parties like customs brokers.
The CARM system requires importers to be responsible for their financial security and payment obligations.
Release at the border functions performed by a customs broker do not change.
Importers should determine the best payment method for their specific needs.

WHAT IS THE TIMELINE?

CARM is a multi-year project and will be launched in three releases:

CARM Release 0 -  January 2021 (Background System Update)

• The existing ARL system is moved from its current data centre configuration to the more robust SAP S4/ HANA system. If you don’t understand what this means, don’t worry. These are background software improvements, and you, the importer, will not experience any changes

CARM Release 1 -  May 25, 2021 (CARM Client Portal - LIVE)

• The CARM Client Portal (CCP) comes online
• Importers can provide delegation of authority for portal access to employees and third parties (such as customs brokers) to manage commercial imports activities (see Delegation of Authority below)

CARM Release 2 -  *October 2023 - Tentative (CARM - Full Launch)

• Importers MUST post and monitor security to participate in the Release Prior to Payment (RPP) program (see below).  Importers can no longer use Customs Broker’s security
• CARM Client Portal has full functionality 

WHAT IS THE TIMELINE?

CARM is a multi-year project and will be launched in three releases:

CARM Release 0 -  January 2021 (Background System Update)

• The existing ARL system is moved from its current data centre configuration to the more robust SAP S4/ HANA system. If you don’t understand what this means, don’t worry. These are background software improvements, and you, the importer, will not experience any changes

CARM Release 1 -  May 25, 2021 (CARM Client Portal - LIVE)

• The CARM Client Portal (CCP) comes online
• Importers can provide delegation of authority for portal access to employees and third parties (such as customs brokers) to manage commercial imports activities (see Delegation of Authority below)

CARM Release 2 -  *October 2023 - Tentative (CARM - Full Launch)

• Importers MUST post and monitor security to participate in the Release Prior to Payment (RPP) program (see below).  Importers can no longer use Customs Broker’s security
• CARM Client Portal has full functionality 

WHAT IS THE TIMELINE?

CARM is a multi-year project and will be launched in three releases:

CARM Release 0 -  January 2021 (Background System Update)

• The existing ARL system is moved from its current data centre configuration to the more robust SAP S4/ HANA system. If you don’t understand what this means, don’t worry. These are background software improvements, and you, the importer, will not experience any changes

CARM Release 1 -  May 25, 2021 (CARM Client Portal - LIVE)

• The CARM Client Portal (CCP) comes online
• Importers can provide delegation of authority for portal access to employees and third parties (such as customs brokers) to manage commercial imports activities (see Delegation of Authority below)

CARM Release 2 -  *October 2023 - Tentative (CARM - Full Launch)

• Importers MUST post and monitor security to participate in the Release Prior to Payment (RPP) program (see below).  Importers can no longer use Customs Broker’s security
• CARM Client Portal has full functionality 

WHAT IS THE TIMELINE?

CARM is a multi-year project and will be launched in three releases:

CARM Release 0 -  January 2021 (Background System Update)

• The existing ARL system is moved from its current data centre configuration to the more robust SAP S4/ HANA system. If you don’t understand what this means, don’t worry. These are background software improvements, and you, the importer, will not experience any changes

CARM Release 1 -  May 25, 2021 (CARM Client Portal - LIVE)

• The CARM Client Portal (CCP) comes online
• Importers can provide delegation of authority for portal access to employees and third parties (such as customs brokers) to manage commercial imports activities (see Delegation of Authority below)

CARM Release 2 -  *October 2023 - Tentative (CARM - Full Launch)

• Importers MUST post and monitor security to participate in the Release Prior to Payment (RPP) program (see below).  Importers can no longer use Customs Broker’s security
• CARM Client Portal has full functionality