CARM Update! 23/01/25 Customs Notice 25-02: CARM Transition Measure - Late Payment Penalties and Interest 1. In order to further support the transition to the CBSA Assessment and Revenue Management (CARM) system, effective January 20, 2025, and up to the March billing period due date of March 31, 2025, the Canada Border Services Agency will not be issuing late payment penalties and late payment interest. 2. Effective April 1, 2025, all accounts with an overdue balance from the March 2025 statement of account (SOA) will be subject to late payment penalties. 3. Effective April 4, 2025, late payment interest will start accruing on accounts with an overdue balance and will be included on the SOA to be issued on April 25, 2025. 4. An account for which an SOA has not been paid, as per the specified due date, will be subject to collection measures by the Canada Revenue Agency. https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-02-eng.html Today's CIIT Hearing Results - Motion to defer was defeated Despite 80% of our members expressed that CARM is not ready and multiple Associations submitted reaffirmation letters of concern the motion was defeated. Therefore, The motion to delay CARM which included the appointment of a 3rd party was defeated. LIB/NDP members voted NO to defeat the motion. Conservatives voted YES IN favour of the motion. The vote was 6/5 to defeat the motion. The CIIT hearing has just concluded. YOu can check the listing on ParlVu. MEMBERS MUST PREPARE FOR THE CADEX AND CCS SYSTEMS BLACKOUT BEGINNING ON OCTOBER 4, 2024 CARM Update! 11/08/23 The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) project is a significant undertaking by the CBSA and industry to modernize the collection of duties and taxes for goods imported into Canada. The initial phase of the project, launched in May 2021, allowed importers, brokers, and trade consultants to view their transactions and statements of account, request a ruling, and pay invoices with new electronic payment options. Recognizing the investment and impact that CARM represents for industry and for the Government of Canada, we are taking a phased approach with it becoming the official system of record for the collection of duties and taxes for commercial goods imported into Canada. In October 2023, the CARM Release 2 system will be available for selected industry partners who want to test their own internal systems, and for software service providers to continue to certify their software with CARM. The proposed regulatory amendments continue on schedule with a planned coming-into-force date of May 2024, when CARM becomes the official system of record. Further enhancements are expected to become available in fall 2024. A forum will be established with key stakeholders to discuss implementation of this phased approach and application of regulations in support of CARM. All commercial businesses who import goods into Canada need to register to the CARM Client Portal (CCP) before May 2024 to minimize border delays and benefit from the Release Prior to Payment (RPP) transition period. Specifically, all importers who onboard the CCP prior to the coming-into-force date in May 2024 will be assigned RPP qualifying status for a 180 day transition period allowing them to adapt to this new model, while ensuring that border disruptions are mitigated. Commercial importers will still be able to obtain release prior to payment of duties and taxes during the transition period as they proceed to meet the requirement for financial security. The CBSA is aware of the significant investment that CARM represents for industry and for the Government of Canada as a whole. Accordingly, we also wanted to take this opportunity to inform you that our intent is to publicly announce this latest CARM update via news release this week. CARM Update! 10/03/22 The CBSA Assessment and Revenue Management (CARM) project successfully launched its first two releases in January (Release 0) and May (Release 1) 2021. These releases represent the foundation on which the third release (Release 2) is being built. Release 2 is the largest, most complex CARM release and requires careful consideration for its implementation. We are aware of the significant investment that Release 2 represents for industry, as well as the impact that COVID-19 has had on many businesses. With the goal of shared success, and in consideration of other Release 2 pressures, the CBSA is carefully reviewing the appropriate timing for Release 2 implementation. At this time, we can share that we do not intend to proceed with the implementation of CARM Release 2 any time before January 2023. The CBSA will continue to consult with our trade chain partners, and communicate information via our working groups and the CARM website. In the meantime, the CBSA is exploring opportunities to de-risk and facilitate the adoption of CARM at Release 2, which may include a CARM Experience Simulation (CES) / pilot with volunteers from our trade chain partner community in a non-production environment. More information will be shared on this as it becomes available. CARM Update - Coming into Force Coming Into Force of CARM Regulatory Package CARM Update! Yesterday the CBSA advised that there will be a "Client Experience Simulation (CES)" project that will kick off in May 2022 - additional details on this project have not yet been given. It was also communicated that the full implementation of R2 would most likely not be before January 2023, also there are approvals that must take place before a implementation date can be confirmed and communicated by the CBSA. The CSCB have asked for something in writing indicating that full R2 would not happen in May 2022. CARM Client Portal is live! CBSA is pleased to announce the launch of the CARM Client Portal! The CARM Client Portal is available to importers, customs brokers and trade consultants at Release 1, and includes the ability to view transactions and statements of account, request rulings, and pay invoices online. Visit the CBSA website for more information on CARM and client support. What is CARM? CBSA Assessment and Revenue Management (CARM) is a multi-year initiative designed to transform the collection of duties and taxes for goods imported into Canada. Through CARM, the CBSA will modernize and enhance the process of importing commercial goods. All importers are required to register in the CARM Client Portal (CCP). Please contact L.M. Clark Customs Broker Ltd.to find out more information on it and please also click on the link below that will take you directly to the CARM website. https://www.cbsa-asfc.gc.ca/prog/carm-gcra How Importers can prepare for CARM: 1. In your company, you will have to designate an employee who will be your Internal Business Account manager (BAM). This person should have access to your CRA (Canada Revenue Agency) account. Under this role, the employee will be responsible for the functionality of the portal and approving any access to your account with internal employees and your customs broker. 2. Once your BAM has been determined, they will be responsible for registering your company in the CARM Client Portal (CCP). Authentication will be handled one of two ways: GC Key: https://clegc-gckey.gc.ca/j/eng/FQ-02 CRA Sign in Partner: https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services/sign-partners-help-faqs/using-a-sign-partner.html The user account will be linked to your current business number. Important: All importers must register in the CARM Client Portal by May of 2022 or else they will not be allowed to import into Canada. 3. Once you have registered your business for CARM this will allow you to delegate third party access to your portal including your customs broker. 4. CARM requires all importers to post security with CBSA to guarantee the payment of duties and taxes before goods will be released by customs. All importers will require a bond and the surety companies will see a large amount of applications in a short period of time. Please contact us and we can help you secure a bond before the deadline approaches. A minimum bond of $25,000.00 or 50% of your highest monthly accounts receivable (duty and GST) will be required. For more infomation about on-boarding to the CARM Portal, Please view the following PDF. CARM Video Instructions How To Create Login Credentials and a User Account in the CARM Client Portal How to set up a delegation of authority for a third party service provider A full List of CARM Video Instructions Here CARM activation and Bond application IMPORTANT NOTICE