In order to manage Canada’s borders and safeguard the nation’s security and prosperity, the Canada Border Services Agency (CBSA) was established in 2003 as a federal agency that operates under the purview of the Ministry of Public Safety and Emergency Preparedness.
This agency was formed to consolidate different border-related functions previously managed by various governmental departments, ranging from customs and immigration to food inspection.
The Canadian government’s goal in bringing these functions under one umbrella was to enhance the efficiency and effectiveness of border management and maintain a balance between facilitating lawful travel and protecting national security.
The CBSA’s responsibilities are wide-ranging. They include the enforcement of customs laws, the collection of duties and taxes, and ensuring that imported goods comply with Canadian regulations.
One of the primary goals of the CBSA is to prevent the entry of goods and individuals into the country that pose a risk to the health, safety, or economic well-being of Canadians.
What is the Assessment and Revenue Management (CARM) initiative?
The CBSA developed the Assessment and Revenue (CARM) initiative to modernize its accounting and data management systems and give the commercial trade community a streamlined way to interact with them.
The ultimate aim of this multi-year project is to transform and simplify the process of importing commercial goods into Canada, while allowing importers to manage their trade activity and improve their compliance with trade rules and regulations.
Once implemented,
CARM will provide an updated and modernized interface for importing goods into Canada. This interface will improve the consistency of trade rulings and decisions, strengthen compliance verification and fraud detection, and give importers access to their own filings and data.
In October 2024, CARM will become the official system of record used by importers and other trade chain partners to pay duties and taxes.
How will importers be affected by CARM?
CARM will affect businesses of all types and sizes that import commercial goods into Canada. With the implementation of this initiative, there will be a complete shift in the responsibilities of importers.
As a result of CARM’s implementation, the liability and financial risk for duty and tax payments will largely shift from brokers acting on behalf of importers to the importers themselves.
As part of this shift, importers will also now need to obtain a Release Prior to Payment (RPP) bond. Failure to have this bond in place will result in being required to pay duties and taxes before the release of their shipment.
It is also necessary that commercial importers register with the CBSA to secure a Business Number (BN) so that they can set up a client profile on the web-based CARM portal.
According to this new system, this is a strict requirement for importing commercial goods into the country. Casual and non-commercial importers will not be subjected to these requirements.
What should importers do to prepare for CARM Release 2?
While CARM has been a multi-phase project, the first phase of which was released in May 2021, the CBSA has announced that “Release 2” is coming in October 2024. There are a number of ways that commercial importers can prepare themselves for this release to ensure a smooth transition. This includes taking the following measures:
1. CCP registration and BAM designation
First and foremost, if you have yet to register on the CARM portal, it would be best to do so as soon as possible so that you can begin familiarizing yourself with it.
To create and manage your CCP (CARM Client Portal) business account, you must designate a business account manager (BAM) to take on this role. The person fulfilling this role will have the highest level of access to this account, with the authority to read, write, and edit all information in the client portal.
Upon creating the account, your BAM must input your relevant information, including your Business Number (B9) and your importer/exporter program account identifier (BN15), and provide import transaction information contained in your daily notices (DNs) and monthly statement of account (SOA).
It is possible to designate additional BAMs to assist in managing your business account. However, this can only be done following the initial setup of your CCP business account, as the original BAM will have to grant them access. In fact, it is recommended that you designate at least two people within your organization to act as BAMs.
2. Financial security provision
It is necessary to figure out how you will provide Customs with financial security. If you prefer, you can post cash payments in the CARM CCP prior to your goods arriving at the port of crossing, or you can obtain your own D120 import bond.
If you decide to opt for your own surety bond, it is better to apply sooner rather than later, as there is bound to be an influx of applications for such bonds leading up to Release 2.
3. Authority delegation
Another thing that your BAM can do is provide third-party service providers (customs brokers) with the authorization to manage your commercial importation activities via the CCP.
Although multiple customs brokers can be delegated to manage your commercial import activities, each broker must be delegated separately by having your BAM log into your CCP account and accepting the notification received from each of them.
After granting a third-party service provider access to your CCP business account, your BAM will need to delegate their authority level.
How J.W. Smith Can Help Importers Navigate the New CARM System
If you would like to facilitate a smooth transition to the new
CARM CBSA system to ensure you can continue importing commercial goods into Canada without any issues,
J.W. Smith can help you secure the bonds you need.
Since we work closely with a surety company, we can submit an application to them to import bonds on your behalf. Once you become our customer, we can easily set up a CARM CCP account for you after going over a few basic questions to gather some key information.
Once we are your designated customs broker and you delegate authority to us through the CARM client portal, we can submit final accounting details to the CBSA for you and carry out monthly reconciliations.
With our team of customs specialists on your side, we can streamline the customs clearance process for you, reducing duties, fines, and delays. With 50 years of experience under our belt, we are well-equipped to facilitate smooth transitions through borders so that you can focus on your core business without worrying about the intricacies of international trade.
For more information about how we can help you ease into the new CARM CBSA system, or to learn more about the range of importation services that we can offer, call J.W. Smith at 1-888-528-3059 or
contact us here.