CBSA Reminds Importers to Submit Financial Security Before CARM Transition Measure Ends in April
Ottawa, ON – February 28, 2025 (19:01) – The Canada Border Services Agency (CBSA) is issuing an urgent reminder to all Canadian importers to secure their financial security before the transition measure associated with the CBSA Assessment and Revenue Management (CARM) project comes to an end in April. This alert comes as the deadline looms for securing a financial security instrument to cover duties and taxes owed to the CBSA.
The CARM project, a multi-year initiative aimed at modernizing and streamlining the collection of duties and taxes for goods imported into Canada, has already undergone a successful rollout of its Release 2. However, the CBSA acknowledges the transition to the new system requires adjustments from importers, brokers, and other trade chain partners.
A key aspect of this transition involves importers securing their own financial security, such as a surety bond or cash deposit, to guarantee payment of duties and taxes. Previously, many importers relied on their customs brokers to secure this financial security on their behalf. With CARM, this responsibility shifts to the importer directly.
Why is Financial Security Necessary Under CARM?
The CARM system aims to provide importers with greater control and transparency over their import activities. Having their own financial security allows importers to:
- Manage their credit limit directly: Importers can now determine the level of security they need based on their import volume and payment patterns.
- Access CARM Client Portal: The CARM Client Portal provides importers with a centralized platform to view their account details, track transactions, and manage payments.
- Potentially delay payment: With sufficient financial security, importers can utilize Payment Option 3 (PO3) to defer payment until the 10th business day of the following month.
What Happens if Financial Security Isn’t Secured by the Deadline?
The current transition measure allows importers to continue operating under their broker’s financial security for a limited time. However, this grace period is set to expire in April 2025. After this deadline, importers without their own financial security may face significant disruptions to their import operations. These disruptions can include:
- Delays at the border: Shipments could be held until the required duties and taxes are paid upfront.
- Potential penalties: The CBSA may impose penalties for non-compliance with CARM regulations.
- Interruption of business: Significant delays and penalties can negatively impact supply chains and overall business operations.
Steps Importers Need to Take:
The CBSA is urging importers to take the following steps to ensure they are compliant with CARM requirements:
- Register for a CARM Client Portal Account: This is the first and most crucial step. Access the portal through the CBSA website.
- Assess Financial Security Needs: Analyze import volumes and payment patterns to determine the appropriate level of financial security required.
- Secure a Financial Security Instrument: Choose between a surety bond obtained through a bonding company or a cash deposit made directly to the CBSA.
- Link Financial Security to CARM Account: Ensure the financial security instrument is properly linked to the importer’s CARM Client Portal account.
- Communicate with Customs Brokers: Keep customs brokers informed of progress and any changes to financial security arrangements.
Available Resources:
The CBSA has made available a range of resources to help importers navigate the CARM transition:
- CARM Client Portal: The central hub for accessing CARM services.
- CBSA Website: Provides comprehensive information on CARM, including FAQs, guides, and training materials.
- CBSA Help Desk: Contact information for direct support and assistance with CARM-related issues.
- Consultations with Customs Brokers: Brokers can provide valuable guidance and assistance with securing financial security.
The CBSA emphasizes the importance of taking immediate action to secure financial security before the April deadline. Importers are encouraged to leverage the available resources and seek assistance if needed to avoid potential disruptions to their import operations. Failure to comply with CARM regulations after the transition measure expires could result in significant delays, penalties, and overall disruptions to business. The CBSA remains committed to supporting importers throughout this transition and ensuring a smooth and efficient border experience.
CBSA reminds importers to submit financial security before CARM transition measure ends in April
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