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The CARM system now being used in Canada is specifically designed to manage incoming commercial imports. All B2B transactions, regardless of size or value, must utilize it.
Key Takeaway:
The Canada Border Service Agency (CBSA) has now implemented the Assessment and Revenue Management (CARM) project that streamlines how import duties and taxes are paid. With full implementation in effect, the CARM portal is now the only way for importers to submit payments and complete the import process.
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The CBSA Accounting and Revenue Management (CARM) project is Canada’s multi-year plan to facilitate Customs by having a single system to handle all commercial trade transactions and data.
The official CARM release and launch has been done in stages.
Once the official launch is complete, the Canada Revenue Agency, which currently oversees imports and certain payments, will cease to function in that capacity.
By May 2024, any business exporting goods to Canada, whether they are based in Canada, the United States, or elsewhere, must have a portal account to manage their payments and other related tasks.
The first step to using this new system is the CARM client portal (CCP). The CCP is the online platform where importers, customs brokers, and trade consultants can access CARM’s essential features.
When registering with the CARM portal, you’ll have two personal profile options:
As a business account manager, you can register your business and then create an account for employees to access it. Employees still create their own personal accounts and then have the option to ask for access to a business account.
Let’s look at the registration process in more detail.
Before importers or anyone else can create a CCP profile, they need to be registered with the CBSA.
All businesses are able to register, including those based outside Canada, provided they meet two conditions.
If you haven’t yet taken this step, that should be your first priority.
Once that is taken care of, go ahead and begin registering your business on the CCP. When putting your business information in, it has to match everything that the CRA already has on file. Mistakes can lead to delays or disable your access to CARM’s business features.
Let’s break it down into simple steps.
Once done, a number of other important tasks can be taken care of:
From that point on, it’s a matter of becoming familiar with the platform and its features. In fact, you really don’t have much choice in the matter. Even if you are planning to import products into Canada using a customs broker, the agreements between you and them must be done through the CARM portal.
CARM was designed to streamline the import process by having a centralized system. Part of the streamlining process involves shifting more responsibility to the importer.
Certain tasks, like the posting of customs bonds (known in Canada as a financial security agreement) must be handled directly by the importer, rather than an outside service.
Before CARM was fully implemented, it was common for importers to have a 3rd party, such as a customs broker, use their credentials on behalf of the importer and secure clearance of goods before a full accounting of duties was completed.
This is known as the Release Prior to Payment (RPP) program and was set up for businesses to post financial securities that show they have the calculated duties for a shipment covered.
The good news is that the program isn’t going away. However, it does mean that an importer can’t use a customs broker’s RPP credentials anymore. They must establish their own.
Without a customs broker, importers will now have to complete the following tasks independently:
Thankfully, the CBSA does provide help in this area. Within the CARM system there are tutorials, guides, and customer support services. Whether it's understanding a regulation or navigating a complex procedure, new and experienced importers can benefit.
While it is a little extra work, it also allows for improved visibility of trade finances and other benefits that we’ll get into next.
Having everything related to your imports in one program makes more than just your finances visible. In many ways, it’s also a safety net to help you avoid miscalculating fees based on various trade agreements and regulations.
Import businesses can look forward to the following benefits:
In short, CARM's approach makes it easier to import commercial goods. The simpler the system, the easier it is to avoid various fines and penalties.
*Value in Canadian Dollars (CAD) / Source: CBSA master Penalty Document
Penalties like the ones listed here can be more easily avoided with CARM, especially for mistakes like keeping records in the wrong place. Thanks to the CCP, everything is already where it’s supposed to be.
Between the technology and a user-centric design, it’s a comprehensive solution for importers.
Of course, it’s not just importers who have access to CARM. Canada wants to make importing easier, not put brokers out of a job.
The CARM portal, and its various features, are set up to be used by the following entities:
Importers can still use the services of a customs broker by officially delegating certain responsibilities to them. This must be done through the importer’s account in the CCP.
Small businesses that may only import a few times a year or less can officially delegate various services to their preferred brokerage firm.
For businesses that import heavily regulated items, having a professional broker (as well as related consultants and trade partners) involved is a matter of necessity.
Another great benefit of CARM then, is ensuring that all official communication between these parties happens in a single space. No one makes a move without the other realizing it and missed communications among all involved are greatly reduced.
Our Licensed Customs Brokers can help.
Schedule a 45 Minute Personalized Consult and get the answers you need.
The CARM system is bringing significant change to Canada’s import process, but also several new advantages. From simplifying importing processes to managing financial security, it's a necessary tool that anyone looking to do business with Canada needs to master.
USA Customs Clearance is here to help. With brokers licensed to operate within Canada, we can serve as a designated delegate within CARM.
Whether you’re operating in Canada as an importer, or serve as a U.S. supplier for export, USA Customs Clearance is here to help.
Call us today at (855) 912-0406 to see how or send us a specific inquiry for services online.
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