What is CARM?
CARM (CBSA Assessment and Revenue Management) is a new system from the Canada Border Services Agency (CBSA) designed to streamline and simplify the importation process. It provides a digital platform for businesses to manage customs duties and taxes, making it easier for small and medium-sized businesses to comply with regulations and efficiently manage their accounts through the CARM Client Portal (CCP).
Visit the Government of Canada CARM website.
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Phases of CARM
Release 1: May 2021
Since May 25, 2021, importers have been required to sign up and register their businesses on the CARM Client Portal (CCP). This can be done through a Sign-In Partner or a GC Key (using the Business Number (BN) and associated RM Account Number(RM) e.g. Import & Export Account (RM0001).
Release 2: May 2024
This final release/implementation of CARM Release 2 is targeted for May 2024. Once it goes into effect, importers and trade partners will have access to the portal’s full functionalities and be able to complete and manage their import processes online.
Release 3: October 2024
As of October 21, 2024, CARM became the official system of record for the collection of duties and taxes, which introduced:
- changes to the Release Prior to Payment (RPP) program
- electronic commercial accounting declarations that you can correct and adjust
- harmonized billing cyclesnew offsetting options
- electronic management of appeals and compliance actions
- the ability to register for a Business Number (BN9)
- enrolment in various CBSA commercial programs
April 19, 2025
As of April 19, 2024, the 180-day grace period after the October 21, 2024 CARM launch ends. This was given to businesses to comply with the new CARM requirements, specifically posting the required financial security.
This financial security is crucial for businesses to participate in the Release Prior to Payment (RPP) program, which allows importers to have their goods released before paying duties and taxes.
More information is available here.
Actions Every Importer Must Take
1
Register ASAP
Importers will experience extreme delays and extra expense getting goods into Canada after October 2024 if they don't register for the CARM Client Portal. Register ASAP.
2
Give your broker access
Your customs broker needs access to your CARM client portal account; otherwise they can't pay duties and taxes on your behalf. Don't forget this important step.
3
Get a bond
Surprise! You've been using your customs broker's surety bond all along to secure your imports. Under CARM, you'll need your own bond. Need a bond? Contact our team and we will help you get a bond, or buy one on our website.
4
Reconcile your account
The launch of CARM is an ideal time to figure out what's current, what's outstanding and what you may not have to pay. It's an arduous process, but help is available.
CARM Reporting Changes
CARM and LVS - Latest Updates from CSCB
Contact Us
Have a question about CARM? Our team of CARM specialists are here to answer your questions and can guide you through every step of the registration process. This is just one of the many services our Trade Consulting team offers today!
Visit the CBSA website to learn more about CARM
Frequently Asked Questions
What does CARM stand for?
CARM stands for CBSA Assessment and Revenue Management. It is an initiative by the Canada Border Services Agency (CBSA) aimed at modernizing and streamlining the process of importing goods into Canada. CARM involves the implementation of a new system to manage and assess customs duties, taxes, and other fees.
How does CARM impact importers and exporters?
CARM introduces changes in the way importers and exporters interact with the CBSA. It requires the use of new electronic tools and processes, such as the CARM Client Portal, for managing customs declarations, payments, and other import-related activities.
What are the key benefits of using CARM?
By embracing CARM, importers and exporters can experience several benefits, including improved efficiency in managing customs processes, enhanced transparency, real-time access to import data, and simplified payment methods. It also aims to reduce errors and discrepancies in customs declarations.
Is it mandatory to use CARM?
Yes, CARM is mandatory for all businesses involved in importing goods into Canada. It is essential to comply with the new requirements and transition from the existing customs systems to CARM for seamless import operations.
What happens if I do not register for the CARM portal by May 2024?
CARM Release 2 is targeted for May 2024. If you have not registered and don’t meet the CBSA CARM requirements, your goods will be held at the border until a cash deposit it paid. This could mean lengthy delays and a serious financial impact to your business.It is expected that Importers with registered accounts on the CARM Client Portal (CCP) will benefit with a 180 day extended period before being required to post financial security. Following 180 days, security will be required in the form of a Cash Deposit or as a Surety Bond.
What are the mandatory financial security options so my goods to ensure my goods aren’t held at the border?
Though importer security is mandatory (at the launch of Release 2 which is targeted for implementation in May 2024), importers have choices regarding the type of security they can obtain:
Security Bond
Importers using the Security Bond option are only required to post 50% of their highest anticipated monthly duties and tax obligation. Each RM15 (123456789RM0001, 123456789RM0002) must have a minimum of $25,000 posted for the surety bond option. A BN9 is able to post one bond for multiple BN15’s provided the security amount reflects the required $25,000 minimum for each BN15.
Cash Deposit
Importers who opt to provide a cash deposit will be required to pay 100% of the anticipated highest monthly duty and tax obligation.
Need help with a security bond?
No problem! Our team at A & A Customs Brokers can assist you in obtaining a pre-approved security bond that will ensure you meet the minimum requirements. It’s one of the many services we offer! Contact Us to learn more. (CTA - carm.inquiries@aacb.com)
How can A & A Customs Brokers help with CARM implementation?
As a trusted customs brokerage firm, A & A Customs Brokers has extensive expertise and experience in navigating CARM requirements. We provide valuable guidance and assistance in adapting to the new system, ensuring compliance, and maximizing the benefits of CARM for your import operations.
CARM Management Services by A & A Customs Brokers
Our CARM specialists keep up-to-date with the latest changes and requirements, ensuring a streamlined transition and continual compliance for your cross-border trade. Here’s what our CARM Management services entail:
- CARM Implementation: We guide your business through the transition to the new CARM system, ensuring all procedures are effectively implemented and adhered to.
- Ongoing Compliance: Our team continually monitors CARM requirements to ensure your business remains compliant, helping you avoid any potential penalties.
- Duty and Tax Assessment: We manage duty and tax assessments under CARM, ensuring you fulfill your obligations while taking advantage of any potential duty drawback benefits.
- Customs Consulting: Our CARM Management services include expert consulting on CBSA regulations, enabling you to make informed decisions about your cross-border activities.
- Risk Management: We identify potential risk areas in your operations under CARM and advise on mitigation strategies to protect your business.
CARM Release 2 Playbook and Release 2 User Guides are now available on the CARM Google drive! These documents will help you understand CARM Client Portal processes that will Go-Live at Release 2.
The CARM Release 2 Playbook is a holistic end-to-end document of the CARM functionalities from a Trade Chain Partner (TCP) perspective. The intent is to provide clarity and context for business processes when transacting with the CBSA through the CARM Client Portal (CCP), while detailing considerations and scenarios that can help TCPs effectively and efficiently navigate this functionality.
The CARM Release 2 User Guides are detailed step-by-step guides with information about how to start using CARM functionalities. The intent is to help TCPs learn how to use specific functionalities and provide instructions on how to execute processes on the CARM Client Portal. The User Guides include screenshots to help you walk through these functionalities.
To view the CARM Playbook and User Guides, click here.
A & A is a customs brokerage and trade compliance services provider for companies shipping across the border on a regular basis.
