Everything you need to know in one place | Brought to you by your Trade Specialists and CARM Ambassadors. Last Updated Jan 4, 2022
CARM Facts: Everything you Need to Know
CARM stands for CBSA Assessment and Revenue Management. This multi-year initiative aims to upgrade and digitally transform the current importing process. Once implemented, CARM will provide importers with access to their trade information and account balances, direct payment solutions, and a myriad of trade tools that simplify their importing processes.
The Canada Border Services Agency (CBSA) realized that its business systems were failing and required a complete overhaul. That’s why it launched the CARM project to:
- Strengthen audit controls
- Increase risk management
- Ensure higher compliance of Canada importers with import rules and regulations
The goal of this initiative goes beyond providing a self-serve portal for trade chain partners to submit their import forms, track their activities, and pay their customs duties. In fact, the main idea is to tighten the Agency’s control over Importers of Record (IORs) and identify areas of poor compliance and underpaid customs duties.
All importers to Canada are required to take part in the CARM initiative. Although there is no impact on the release process of imports, every Canadian importer will be required to register and access the CARM Client Portal (CCP) for eligibility to import into Canada. Registration must be completed before Release 2. The implementation date of CARM Release 2 is targeted for October 2023.
As an importer to Canada, CARM will help streamline your import processes more efficiently and allow the government to collect the revenue needed to deliver the programs Canadians depend on.
CARM has no impact on the release process of your imports, but it will help ensure that you’re fully compliant with import rules and regulations while paying the right customs duty. CARM will also enable you to track your forms, make payments, and reconcile your trade reports in a more standardized way.
The CARM Client Portal (CCP) is a simple and secure way to transact with the CBSA. Importers will be able to view their Statement of Account (SOA) with financial transactions, make credit card or pre-authorized payments, and submit appeals and rulings requests.
As of CARM Release 1, the CCP will only provide importers with a visual of Import Entry Numbers and amounts owing. In the future, a new suite of tools will be made available to assist importers and declarations via the new electronic Commercial Accounting Declaration (CAD).
We’re here to make your CARM adoption and compliance experience as seamless as possible. At GHY we have all the knowledge, expertise, and tools to help you get a head start with CARM. As we connect, we’ll share Trade Tools that deliver benefits others will have access to only when CARM’s Release 2 is rolled out – with a targeted implementation date of October 2023. In short, today we provide importers with features and functionalities that the CBSA may only be able to provide in the years ahead.
- CARM Release 1 Playbook
- CARM Client Portal Infographic
- Daily Notices & Statement of Account
- CARM Spotlight:
- Client Client Portal (CCP) Onboarding – User Guide
- Checklist for Registering Your Business on CARM Client Portal
- Delegation of Authority
- Financial Security & Billing Cycles
- Commercial Accounting Declaration
Starting May 25, 2021, importers will be 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 RM Account Number).
CARM Today: What You Need to Do Right Now
The CBSA acknowledges that a broker statement of account and importer statement of account are different. In fact, there may be credits available on your account and only 10% of businesses have access to their importer SOA. With the CBSA encouraging all importers to sign up and access their SOAs, we can help you to do that. You can obtain access through us, as an authorized CARM third-party service provider, or contact CBSA directly. Information from your SOA will be required to answer affinity questions during registration on the CARM Client Portal (CCP).
* Learn more about your Importer SOA or email firstname.lastname@example.org to get access.
Speak to your customs broker to understand how the CARM Client Portal (CCP) will support your business and trade activities. Your customs broker can advise on best practice usage of the portal, including providing insights on functionality and what level of access is needed for each of your internal and external stakeholders.
Register your business and Business Number (BN) on the CARM Client Portal (CCP) and start delegating authority to your trade chain partners (service providers and/or customs brokers). You can register using a GC Key or via one of the CBSA’s Sign In partners.
The implementation for CARM Release 2 is targeted for October 2023. At Release 2 of CARM, it will be mandatory for all importers to post security. 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 security. Following 180 days, security will be required in the form of a Cash Deposit or as a Surety Bond. Without security, an importer may be required to pay in advance.
When it comes to posting of security each importer has unique choices. Book a Meeting with GHY to understand what the best choice is for you and your business under the current CARM schedule.
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Financial (Importer) Security
CARM Release 2 is targeted for October 2023. 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 security. Following 180 days, security will be required in the form of a Cash Deposit or as a Surety Bond. Without security, an importer may be required to pay in advance.
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.
Latest Update on Importer Direct Security (Bond)
The vast majority of importers into Canada have a monthly combined duty/tax liability of less than $5,000. Most of these importers will opt for providing CBSA with a cash deposit calculated based on 100% of the anticipated monthly duty and tax obligation.
Though importer security is mandatory (at the launch of Release 2 which is targeted for implementation in October 2023), importers have choices regarding the type of security they can obtain. GHY can provide you with more understanding and better insights to help you make the choice that best suits your business needs. You can contact your account representative or send an email to email@example.com for more information.
*GHY recommends waiting until at least Q2/2022 to consider your security options.
CARM Payment Cycles
As of Release 2, new billing cycles and payment due dates will be introduced. Here are the new CARM payment cycles.
COMMERCIAL ACCOUNTING DECLARATION (CAD)
Importers or their delegated customs broker/trade consultant will be required to submit their Commercial Accounting Declaration by the 24th day of month 2.
STATEMENT OF ACCOUNT (SOA)
The Statement of Account (SOA) will be generated on the portal on the 25th day of month 2. This SOA accounts for all commodities crossing the border in month 1.
PAYMENT DUE DATE
Payments will be due 10 business days (holidays included) after the 17th of the calendar month. Please note that the 18th day of month 2 is considered Day 1.
The Correction Period allows for interest-free corrections to your Commercial Accounting Declaration (CAD). It starts on CAD submission day and ends on payment due date.
The Adjustment Period starts on payment due date. Please note that adjustments to your CAD at this stage (after the Correction Period) may be subject to CBSA review.
Your CARM Ambassadors
How GHY can help you navigate CARM
We’re more than trade specialists. We’re Certified Trade Compliance Specialists (CTCS) and CARM Ambassadors, and we share ideas and insights that originate from the importers we serve to shape outcomes that better suit your business and its unique needs.
The CBSA Assessment and Revenue Management (CARM) program is challenged by diverse trade dynamics, including eCommerce and multiple transport modes. While the CBSA attempts to standardize business and accounting practices through this project, it becomes more challenging for individual businesses to navigate these changes. At GHY, we understand just how unique your business needs are. That’s why we’re committed to develop a tailored solution to suit your journey as you adopt CARM and embrace the changes in your importing process – without affecting your operations or delaying your imports.
Book a Meeting with GHY
Our CARM experts are here to answer your questions and guide you through CARM. We can’t do it for you, but we will do it with you.
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.
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.
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.
CARM Webinar 1 – February 4, 2021
CARM Webinar 2 – March 17, 2021
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We’re here to help you get familiar with CARM and the CARM Client Portal (CCP).
Check out our onboarding videos OR Schedule a one-on-one session with a GHY CARM Ambassador.