CARM implementation on October 21, 2024

What importers need to know

On October 21, 2024, the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) will become the official system for importers and other trade chain partners to account for their imported goods and pay applicable duties and taxes owed to the CBSA.

The CARM Client Portal (CPP) went live on May 25, 2021, as part of the first implementation phase of CARM. It allowed importers to complete certain tasks such as viewing transactions posted to their account and making payments. As of today, it would be expected that importers have already registered for the CPP and delegate portal access to employees and third parties, such as customs brokers and/or trade consultants, so that they may continue to act on their behalf after October 21, 2024.

The CARM project was a multi-year digital initiative. Although it has been postponed several times, the full implementation of CARM should allow CBSA to simplify the overall importing process by providing a modern interface for importing into Canada, giving importers self-service access to their information and improving consistency of compliance with trade rules.

A person reading about the CARM updates for Octpber 2024

Here are some key aspects of CARM that importers should be aware of:

A new commercial accounting declaration (CAD) will be introduced. The CAD will serve as a digital document to account for imported goods into Canada. The current B3 form will be replaced.
The CARM system will automatically calculate duties and taxes based on information provided on the CAD.
The Canada Revenue Agency (CRA) will no longer be responsible for opening import/export program account (RM). This process will now be administered by the CBSA. Importers will still need to obtain their business number (BN) with CRA first before they can register for the RM account via the CPP.
The Release Prior to Payment (RPP) program allows participants to obtain the release of goods from the CBSA before payment of duties and taxes. Importers will no longer be able to use their customs broker’s RPP security to clear shipments before paying duties and taxes. Importers who want to participate in the RPP program will be required to post their own financial security.
Regulatory changes will allow for a transition period which will give importers time to adapt to the new security model and avoid border disruptions. Under certain conditions, importers will have 180 calendar days after October 21, 2024, to make their own financial security arrangements.

Learn more about how CARM may impact your business on the CBSA website (https://www.cbsa-asfc.gc.ca/services/carm-gcra/menu-eng.html) or speak to your Richter advisor.