The CBSA Assessment and Revenue Management (CARM) initiative is revolutionizing the way the Canada Border Services Agency oversees the importation of commercial goods into the country. CARM impacts every business involved in importing goods into Canada, regardless of size or shipment volume. To avoid potential delays at the border, it’s crucial to take the necessary steps now to ensure your shipments move smoothly.
On October 21st, 2024, the Canada Border Services Agency (CBSA) officially launched CARM Release 3, transforming how businesses manage trade activities in Canada. CARM now serves as the primary system for collecting duties and taxes, introducing modernized processes and tools that streamline compliance and improve efficiency for importers.
Key highlights include:
- Enhanced Financial Security: Importers must secure their own financial guarantees, such as surety bonds or cash deposits, to participate in the Release Prior to Payment (RPP) program.
- Electronic Declarations (CADs): The traditional B2 and B3 forms have been replaced with Commercial Accounting Declarations (CADs) for seamless electronic submission, correction, and adjustment.
- Harmonized Billing Cycles: Standardized payment schedules simplify financial planning and improve cash flow management.
- Real-Time Account Management: Daily Notices (DN) and Statements of Account (SOA) provide up-to-date financial details, while the Customs Broker Summary Statement (CBSS) consolidates broker-related activities.
- Digital Compliance and Appeals: Appeals, adjustments, and compliance actions are now managed electronically via the CARM Client Portal.
- Streamlined Registration and Program Enrollment: Business Number (BN9) registrations and enrollment in CBSA commercial programs are fully integrated into the portal.
At Radiant Global Logistics (Canada), a trusted 3PL provider, we leverage our expertise and global network to help businesses navigate these changes with ease. From managing compliance requirements to ensuring seamless customs clearance, we are your partner in adapting to the CARM system and optimizing your supply chain operations.
CARM Registration and Broker Authorization
It is essential for all importers to register their business in the CARM Client Portal and delegate authority to their customs broker. This ensures your broker can manage transactions with CBSA effectively.
Ensure Compliance with Financial Security
Importers must provide their own financial security to maintain the Release Prior to Payment (RPP) status under CARM. This can be done by either posting a surety bond or a cash deposit. The bond must cover the higher of $5,000 or 50% of your highest monthly duties and taxes in the past 12 months, while a cash deposit must equal 100% of that amount.
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Decide How to Handle Payments
After registering on the CARM Client Portal and securing your bond or cash deposit, you’ll need to select a payment method. Importers can either pay the Receiver General directly or authorize their customs broker to pay duties and taxes. Ensure all payments are made on time to prevent shipment delays at the border.