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CARM: Updating Import Duties and Taxes

A flowchart showing whether CARM applies to you

via PDF provided by CBSA webinar.

The Canada Border Services Agency (CBSA) is launching a new initiative called the CBSA Assessment and Revenue Management Project, or CARM for short. This project is set to change the way duties and taxes are paid on imported goods. By October 21, 2024, CARM will become the official system that importers will use to pay duties and taxes.

What will CARM do?

CARM aims to streamline and automate import processes. Its goals are to:

  • Transform the predominantly paper-based duty and tax collection system into a digital one.
  • Provide an easy, accessible tool to manage border services, such as calculating duties and taxes, paying duties and taxes, and submitting e-declarations.
  • Reduce repetitive information requirements.
  • Improve consistency in applying trade rules and decisions.

What do you need to do before the October 2024 date?

Several things need to be set up before the launch of CARM, and we’re here to help you with that.

Under CARM, every commercial importer will need to:

  • Obtain a Canadian import-export program account business number (also known as an NRI account)
  • Register for the CARM portal
  • Purchase a D120 Customs Bond if you want Release Prior to Payment (RPP) privileges, or put up a cash deposit
  • Pay duties and taxes periodically (monthly is the recommendation)
  • Delegate authorization for your customs broker to access your CARM data. Brokers will still submit the customs entries, but payment of the account must be done through the CARM portal.

Significant Changes that might affect you

The most significant change to CARM is that your customs broker will not be able to pay the duties and taxes on your behalf.

  • Only the importer of goods will be permitted to pay the taxes and duties via the CARM client portal.
  • The Release Prior to Payment (RPP) program can no longer be done by us or third-party customs clearers but must be done by the importer of the product.
    • If the importer still wants to take advantage of RPP privileges, they will need to obtain a surety bond that guarantees payment to CBSA of duties and taxes. Importers can also post a cash deposit in lieu of a surety bond.

Avoid Service Disruption and Eliminate Uncertainty

We understand that these changes may seem overwhelming, but we’re here to guide you through this transition. Together, we can navigate the new landscape of customs clearance in Canada so that you are compliant with CARM.

If you have any questions or need further assistance, please don’t hesitate to contact your account manager or use our Contact Us form if you’d like to speak with us to help you navigate your specific situation.

Also, if you’d like more information, sign up to one of the webinars hosted by the CBSA: https://www.cbsa-asfc.gc.ca/services/carm-gcra/webinars-webinaires-eng.html

 

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