CARM

All businesses that import into Canada must be registered with CARM

CARM, the revenue management system developed by the Canada Border Services Agency (CBSA), is scheduled to launch on October 21, 2024.

The new system introduces significant changes to the interactions between the federal agency, importers, their customs brokers, and others. It will transform the collection of duties and taxes for goods imported into Canada.

No online services during cutover period – 1:00pm PST, October 4 to 12:00am PST, October 21, 2024

Courtney has been advised by the Canadian Borders Services Agency (CBSA) that the CARM portal will be unavailable to users during the cutover from the old system to the new CARM.

All importers are advised to be registered in CARM prior to the cutover when the system will “go dark.”

Be proactive to minimize disruptions during and after cutover period.

Courtney has been advised by the CBSA that the CARM portal, will be unavailable to users during the cutover to Release 3 of CARM. All are advised to be registered in CARM prior to the cutover when the system will “go dark.”

If you are not registered for CARM before October 4th, active shipments will be delayed. During the cutover period, online information cannot be entered or updated in the system and you will not be able to register.  

If you are registered, we will be able to clear your shipments as normal, but CADs (commercial accounting declarations which replace B3s) will only be completed in draft form and submitted to Customs after October 21. (See sample CAD)

Once implemented on October 21st, the system will undoubtedly be backlogged with transactions to be processed. Courtney will strive to have all your current shipments fully processed for accounting prior to cut off and newer shipments fully processed as soon as possible after October 21st. 

Note: Those who are registered will automatically receive Release Prior to Payment (RPP) privileges and 180 days to determine preferred financial security options (see Transition period below).

Despite CARM’s history of delays, Courtney advises being ready for the dates provided. If you’re interested in following procedures in the House, on September 25th,  2024, a motion was made to delay implementation as concerns were raised about the CBSA staff requiring more training. Courtney will keep you updated.

Notice of Meeting – CIIT (44-1) – No. 117 – House of Commons of Canada (ourcommons.ca)

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Already registered? Check your CARM Client Portal (CPP) and alert Courtney of any issues

Those that registered soon after CARM went live with Release 1 are advised to access their Portal to:

  • Ensure your account is still active. Any issues would need to be addressed before the transition starts on October 4, 2024
  • Address any outstanding debits or credits – making sure they match your expectations
  • Check that the BAM is correct. Some early accounts may have assigned Business Account Managers (BAM) responsibilities to someone who no longer works for the company. Or you only have one when it is important that two Business Account Managers be assigned to your company

Go here to log into the CARM Portal

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Haven’t registered or set up financial security? Let Courtney Agencies guide you through it

If you haven’t registered yet, please contact Courtney as soon as you can. The system is complex and may require a couple of days to onboard and adjust your internal processes. You will need to:

  • Obtain a Business Number from CRA if you are a new business
  • Assign suitable Business Account Managers (2 recommended)
  • Delegate authority to Courtney as your customs broker
  • Update in-house systems for transition to CARM, if relevant
  • Set up financial security (such as a bond) and preferred payment option
  • Familiarize yourself with CBSA Commercial Accounting Declaration (CAD) and accounting sheets for balances
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Note: A 180-day transition period has been established from October 21, 2024, to April 19, 2025, allowing importers time to adapt to the new requirements and secure their own financial security, minimizing any disruptions at the border.

Courtney Agencies has now supported hundreds of importers to complete their registration with CARM, and we can do it for you too.

What’s different under the new CARM system

CARM will impact the process for obtaining the release of imported goods before accounting and the payment of duties. Make sure your organization is prepared for the new requirements and procedures to avoid unnecessary delays and potentially fines.

First, your invoices will look very different. Amounts owing to the CBSA for duties and taxes will be recorded in your CARM Client Portal and paid directly to the CBSA starting October 31, 2024. Courtney will bill separately for customs brokerage and other ancillary charges.

Importers will no longer be able to use a customs broker’s RPP (Release Prior to Payment) security to release goods before paying duties although CARM registered importers will be able to take advantage of the 180-day financial security grace period.

To obtain the release of goods prior to payment, you must post your own financial security through the CARM Client Portal (CCP). Detailed information can be found in the Financial Requirements section below, including information about Transition accommodations.

All goods released will use a Commercial Accounting Declaration (CAD) which serves as the digital document to account for imported goods into Canada and replaces the current customs coding (B3) and request for adjustment (B2) forms. See a sample CAD here

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Financial requirements which you must arrange

To obtain the release of goods prior to payment, importers must post their own financial security through the CARM Client Portal (CCP).

Financial Security Options

1.  Security Bond: 

o  Importers can post a bond covering 50% of their highest anticipated monthly duties and taxes

o  A minimum of $5,000 must be posted per RM account (e.g., RM15 123456789RM0001)

Need Assistance with a Security Bond? Courtney Agencies Ltd. can assist you in obtaining a security bond to meet the new CARM requirements. Contact us at CARM@courtney.ca

2.  Cash Deposit:

      • o Importers opting for a cash deposit must cover 100% of the highest anticipated monthly duties and taxes

CARM Payment Options

1. Release Prior to Payment (RPP) – Deferred Payments

Importers with RPP privileges can pay duties and taxes owed after the release of goods. Payment options include:

• Online banking

• Credit card or Interac® Online

• Electronic Data Interchange (EDI)

• Pre-Authorized Debit (PAD)

2. Cash Clients (Non-Deferred Payments)

Importers without RPP privileges must pay applicable duties and taxes at the time of release. Payment options include:

• Online banking

• Credit card or Interac® Online

• Point of Entry (POE) payment via Point of Sale (POS) system (credit, debit, cash, or cheque)

3. For Non-Resident Importers.

• CBSA currently does not have a Pre-Authorized Debit (PAD) connection with any US financial institutions

• Online Banking: Available through certain US banks, including Bank of America and JP Morgan Chase

• Bank Draft: Importers can request a bank draft in Canadian Dollars (CAD) payable to the Receiver General and send to: Canada Border Services Agency | Attention: Accounts Receivable | Management Unit | 333 North River Road, Place Vanier, Tower A | Ground Floor, Room 1018 | Ottawa, Ontario, Canada | K1A 0L8. (Some courier services use K1L 8B9.)

• As part of our service to regular clients, Courtney provides certain payment services to NRI clients. Please contact us to confirm details: CARM@courtney.ca

Transition period

A 180-day transition period has been established from October 21, 2024, to April 19, 2025, allowing importers time to adapt to the new requirements and secure their own financial security, minimizing any disruptions at the border.

During this period, all commercial importers with a history of accounting for commercial goods using their importer business number within the last four years and are registered in the CARM portal may benefit from RPP until April 19, 2025.

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Get Expert Guidance with Courtney Agencies

Courtney’s team of experts is adept at navigating the complexities of importing and exporting. We make seamless what can otherwise be a time-consuming process for you and your team.

Our team at Courtney Agencies is well-versed in the CARM system and can serve as the interface between you and the bureaucracy – making things faster and more efficient when you just need to keep them moving.

We know that dealing with customs procedures can be frustrating and stressful. It’s easy to get bogged down in the paperwork and bureaucratic process. Plus, if you make any mistakes or miss a deadline, it can result in costly penalties or delays. That’s why we’re here to help.

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Don’t Let Customs Regulations Slow Down Your Business

Courtney will help you register and or help you understand your place in the new CARM universe.

As soon as possible, please email CARM@courtney.ca or enter your details below and we will get right back to you.

Call 1-604-684-7505 or enter your details below and we will get right back to you.

CARM News Bulletins Archives

  • Preparing for changes to financial requirements (October 1, 2024)
  • Preparing for cutover period (September 25, 2024)

1. What is CARM?

CARM is the new assessment and revenue management system developed by Canada Border Services Agency (CBSA). CARM introduces significant changes to the interactions between the federal agency, importers, their customs brokers, and others. It will transform the collection of duties and taxes for goods imported into Canada.

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2. Is CARM mandatory?

Yes. All companies importing into Canada must register in the CARM Online Client Portal. Once registered, you can provide access to employees and customs brokers to manage both imports and CARM procedures.

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3. When must my company be registered with CARM?

All businesses currently importing into Canada must be registered in the CARM Online Client Portal before October 4, 2024 to avoid unnecessary delays during and shortly after implementation date of October 21st.

Courtney advises having the set-up as soon as possible to address any issues that may arise.

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4. As my Customs Broker, can Courtney Agencies help me register?

Yes, once you have your Government of Canada key (for which we can provide simple instructions), Courtney’s Customs experts can help to set up the registration and walk you through the system. Email us at CARM@courtney.ca

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5. How do register for the CARM Client Portal?

On the CARM Client Portal there is a link titled “Log in to the CARM Client Portal”. From this link you will be able to select GCkey or Sign in Partner to sign in. If this is your first time logging in, the personal profile creation process will begin automatically. After completing your personal profile, the Business Account Manager (BAM) registers the business on the portal. Other employees must request access to your employer’s business account. Courtney Agencies has an easy how to guide that can be requested at CARM@courtney.ca

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6. I must register before October 4 and the system goes live October 21. What happens between those dates?

Between 1:00pm PST, Friday, October 4, 2024 and 12:00am PST, Monday, October 21, 2024, CBSA developers will shut down the current CARM Portal to fully load Release 3 – the final release of the system. During the 16-day dark period, system developers will load, test and address any technical issues that may arise.

During that time, you will not be able to access the Portal and you will not be able to register.

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7. What if I miss the October 4th cut off?

If you have not registered by October 4th, you may face significant delays and disruptions to active shipments.

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8. Will there be a grace period to post financial security?

A 180-day transition period has been established from October 21, 2024, to April 19, 2025, allowing importers time to adapt to the new requirements and secure their own financial security, minimizing any disruptions at the border.

Until April 19, 2025, the system will automatically apply Release Prior to Payment for all CARM registered commercial importers with a history of accounting for commercial goods using their importer business number within the last four years.

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9. My company registered months ago. Is there anything I need to do now?

Particularly if you registered when the Portal first opened, it is advised that you review the information now and ensure it is accurate and complete. For example, is your Business Account Manager still in this role? etc. Go here to log into the CARM Portal

There will likely be delays if issues must wait until October 21 to be addressed.

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10. What must I do to keep our shipments moving during the cutover period?

  • If registered, your shipments should clear as normal
  • If not registered, please register asap
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11. Is it possible that the implementation could be delayed again?

Acknowledging that there have been a few delays since the announcement of CARM three years ago, and, of course, anything is possible – but we must be ready for the dates cited regardless.

If you’re interested in following procedures in the House, on September 25th, 2024, a motion was made to delay implementation as concerns were raised about the CBSA staff requiring more training.

Courtney will keep you updated.

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12. How will I pay invoices once CARM is fully in place? Do I pay Courtney or the government or both?

You will visit the Portal to review your CBSA account balances and make payments using the method you’ve set up through them.

Courtney will invoice you directly for customs brokerage fees and other ancillary costs. At the same time, Courtney will also alert you that the CBSA payment is due and the balance owing.

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13. Will Courtney bill during the dark period?

Only fees for Courtney services will be invoiced during this time.

https://www.cbsa-asfc.gc.ca/services/CARM-gcra/schedule-calendrier-eng.html

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14. We pay our invoices at the end of each month. Will that still be true?

Yes, you will pay the CBSA directly starting on October 31, 2024. Check your CARM client portal for balances.

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15. What are the Financial Security Options for resident importers?

Security Bond:

o Importers can post a bond covering 50% of their highest anticipated monthly duties and taxes

o A minimum of $5,000 must be posted per RM account (e.g., RM15 123456789RM0001)

Need Assistance with a Security Bond? Courtney Agencies Ltd. can assist you in obtaining a security bond to meet the new CARM requirements. Contact us at CARM@courtney.ca

Cash Deposit:

o Importers opting for a cash deposit must cover 100% of the highest anticipated monthly duties and taxes

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16. What are the CARM payment options for resident importers?

17. What are the payment options for Non-Resident Importers?

  • CBSA currently does not have a Pre-Authorized Debit (PAD) connection with any US financial institutions
  • Online Banking: Available through certain US banks, including Bank of America and JP Morgan Chase
  • Bank Draft: Importers can request a bank draft in Canadian Dollars (CAD) made out to Receiver General and send it to: Canada Border Services Agency |  Attention: Accounts Receivable  |  Management Unit  |  333 North River Road, Place Vanier, Tower A  |  Ground Floor, Room 1018  |  Ottawa, Ontario, Canada  |  K1A 0L8. (Some courier services use K1L 8B9.)
  • Courtney offers a payment service for non-resident clients. Ask us
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18. Where can I learn more about CARM and its implementation?

Visit the government websites:

CARM: Assess and pay duties and taxes on imported commercial goods

CARM: Release schedule, features and benefits

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19. What won’t I be able to do during the cutover period?

You won’t be able to enter or update any new information including: registration, preparing CADs or confirming shipments, setting up financial security, etc.

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20. Who can access a transaction for correction prior to payment?

Only the importer and the delegated licensed customs broker who submitted the CAD will have access to make a correction prior to payment.

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21. Who will calculate the duty and tax?

The customs broker or importer will provide the Customs required data but Customs will calculate. It is important that the importer check for accuracy and have their broker file an amendment if incorrect.

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For more CARM Qs and As, visit the CBSA site

Great news!

Courtney Agencies is excited to share the recent acquisition of US -based PMK International. Now, with shipments originating from either side of the border, you can expect the same outstanding and trusted service - under one roof! Read more.