Project Description

CARM

Commercial Accounting Declaration (CAD)

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CARM Client Management Services

Commercial Accounting Declaration (CAD)

The Commercial Accounting Declaration (CAD) will serve as the digital document to account for imported goods into Canada, replacing the current B3/B2 forms (eliminating the use of paper B2 form submissions).

  • The new CAD form will not affect the release process; however, commercial importers will be required to post security (e.g. bond) to participate in the Release Prior to Payment (RPP) program. See How to Post Security.
  • The CAD is submitted via Electronic Data Interchange (EDI) or Application Programming Interface (API by the customs broker or importer for final account within 5 business days of release. This is now required for both High-Value Shipment (HVS) and Low-Value Shipment (LVS) goods imported through the commercial stream.
  • The CARM system will automatically calculate the duties and taxes based on information provided in the CAD. Total duties and taxes will be communicated back via EDI/API and the CARM Client Portal.
  • Changes to C-types: C-type entries, also known as cash entries must be submitted via the CARM Client Portal (CCP). C-types will be required for importers without security once enforced. Payment must be made at the time of entry at the port of clearance. CBSA is working on in-house training to eliminate the need for a paper package to be presented at the port of entry for C-types, but GHY recommends it be presented as they transition over.

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Notable Changes from the B3 to the CAD:

  • The CAD form will not be consolidated by B3 line, each Canada Customs Invoice (CCI) line will be a separate line noted on the form.
  • There are 2 spots for description:
    • Classification Description – from the Canada Customs Tariff book
    • Narrative Description – created by the custom broker from the Canada Customs Invoice (CCI)
  • Vendor detail is on the CAD.
  • The US state code is separated from the Country of Origin and Place of Export.
  • The GST, duty, excise, and other rates will not be noted on the form.
  • Excise, surtax and SIMA are all broken out into separate columns:
    • Excise tax & excise duty
    • Dumping & countervailing
    • Surtax & safeguards
  • All provincial taxes have their own column
  • Page 1 of the CAD is a summary of all amounts due/refunded, while subsequent pages have the vendor and line details

Pro-Tip (Blanket Adjustments)

Mass adjustments will replace the current blanket process. The CARM Client Portal enables both electronic data interchange (EDI) and non-EDI participants to perform mass adjustments by supporting multiple adjustments for the same reason. In other words, mass adjustments can be completed through the CARM Client Portal or EDI.

The minimum number of transactions for processing a mass adjustment are two (2) transactions.

FAQs

The ability to submit an adjustment against a B3 that was submitted pre-CARM Release 3 will be available.

Only a licensed customs broker can submit a commercial accounting declaration or make a correction on behalf of an importer, as long as they have proper delegation of authority. Other third-party service providers are able to perform adjustments on commercial accounting declarations on behalf of an importer if they have been granted the appropriate delegated access.

The ability to submit release documentation is not available within the CARM Client Portal. As per the current process, release documentation (paper copies) must be presented to CBSA to obtain release.

C-type entries, however, must be submitted via the CARM Client Portal (CCP), regardless if the C-type is “on account” or a cash entry. In order to obtain release of goods, a paper copy must be printed and presented to CBSA accompanied by the same supporting documentation as is required today. This formulates the “release package” which will enable the Border Services Officer to make a release decision. For additional clarity, no “release” decisions are made within the CARM system.

Versioning will allow importers/brokers to see what changes were made to the commercial accounting declaration and by which party, depending on the type of access granted in the CARM Client Portal.

Importers will have the ability to set data visibility constraints on their relationship with a service provider, however, each service provider can always see the transactions they have submitted on behalf of their client. Visibility rules apply to all transactions, including commercial accounting declarations.

Supporting documentation will be required for all changes resulting in refunds (credits) during the adjustment period within a prescribed time period. Revenue neutral and upward (accounts receivable/debits) adjustments will not require supporting documentation at time of submission, however, a Compliance Officer may request supporting documentation for any adjustment at their discretion. Supporting documentation can only be attached via the CARM Client Portal.

There will be a file size limit of 50MB, which represents approximately 10,000 lines on the commercial accounting declaration.

Paper B2s (request for adjustment) and B3s (Customs Coding Form) will no longer be accepted once the commercial accounting declaration is available with CARM’s Release 2.

Statement of Adjustment will replace the current paper Detailed Adjustment Statement (DAS). It will be sent via the CARM Client Portal to importers and customs brokers as soon as an adjustment has been processed.

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CARM Testimonials

“I had the pleasure of collaborating with the GHY CARM team, and their guidance has proved invaluable. Their expertise regarding requirements for the Canadian government’s initiative ensured our company is well-prepared for upcoming changes. We’re grateful for such a knowledgeable partner.”

Laurie Montizambert, CCS, Price Industries
“Sarah, a big thank you for being on the call and providing your CARM expertise. Paul and I will want to stay in touch with you so we can get it right. And certainly, we want to bring the new assistant controller on and train them right away. I wish our other brokers were as open to meet and walk us through this thing.”
Cynthia Dixon, LCB , Roquette America

“Let me start with saying that the CARM Open Mic webinar was really helpful.  I know it wasn’t the exact content that you intended (thank you CBSA…lol), it was still very impactful.  Great job!”

Krista Grzandziel, National Gypsum
Guiding You Through CARM
Need More Information? Book a meeting with Sarah.

Led by Sarah Marcotte, our expert CARM team at GHY ensures seamless integration of the CBSA CARM program into your business, avoiding disruptions to your imports. Trust us to navigate the complexities with confidence.

CARM Updates

White Paper:

Getting on Board with CARM: How It Will Impact Your Supply Chain

Dive into this White Paper and learn everything you need to know about CARM. We unpack all the details as to why CBSA is making this monumental change, timelines you need to be aware of, why this matters to all importers, steps in setting up your CARM account, and how to minimize your compliance risk and maximize your business opportunities. This is a go-to for all importers and members of the trade community; an invaluable resource to guide you through one of the biggest changes that CBSA has ever made.

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White Paper - Getting on Board with CARM: How it Will Impact Your Supply Chain

 

FAQs

We’re here to take the guesswork out of CARM compliance and make sure you’re on top of things. Read our answers to the most pressing questions that importers asked during our previous CARM webinars.

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Webinars

We regularly host CBSA officials and trade industry experts to discuss CARM updates and questions. Get access to our previous webinar recordings and stay tuned for our upcoming events.

Open Mic on CARM

CARM In Effect: Navigate CBSA’s Biggest Change for Importers

CARM Webinar 1 – February 4, 2021

ACCESS CARM WEBINAR 1

CARM Webinar 2 – March 17, 2021

ACCESS CARM WEBINAR 2

Get in Touch

We’re here to guide you every step of the way. If you have any questions or concerns, please reach out to us.

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