CBSA reminds importers to submit financial security before CARM transition measure ends in April
OTTAWA, ON, Feb. 28, 2025 /CNW/ - The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) system has been operational since October 21, 2024. Since then, a new financial security model exists whereby all commercial importers must post their financial security in CARM to benefit from the Release Prior to Payment (RPP) program. They can no longer use the financial security posted by their customs brokers. The RPP is an option that allows importers, who have posted financial security, to benefit from a fully electronic release process for the importation of commercial goods before paying duties and taxes.
The CBSA is reaching out to commercial importers to remind them to provide the financial security requirement to benefit from the RPP program prior to the end of the CARM transition period on April 19, 2025.
An importer who does not meet the financial security requirement of RPP by the end of the 180-day transition period will no longer be able to benefit from having their goods released electronically at the border prior to making payment of the duties and taxes. Presenting a commercial entry for payment at the time of release introduces longer paper-based processing times in comparison to the electronic release option. Once enrolled in the RPP program, importers are not required to visit a commercial office to pay for the duties and taxes owed at time of release of their commercial shipment.
To enroll in the RPP program, importers must follow these steps:
1. Obtain a Business Number (BN): Register with the Canada Revenue Agency
(CRA) to acquire a nine-digit BN, which serves as a unique identifier for
your business.
2. Register for an Import Program Account (RM): Using your BN, register for
a 15-digit import program account (RM) through the CARM client portal.
3. Enroll in the RPP Program: Within the CCP, navigate to the "Program
Account Profile" section and select the RPP sub-program.
4. Post Financial Security: This can be done by posting an electronic
written security agreement or an electronic cash deposit. The amount is
determined based on the importer's highest monthly accounts receivable in
the last 12 months, inclusive of GST.
For a list of financial security providers that are registered in the CARM system please refer to the Financial security providers web page.
Quick facts
-- Participating in the RPP program offers several benefits :
-- Accelerated Goods Release: Minimizing potential costs and delays
-- Deferred Accounting and Payment for goods: Improving cash flow
management
-- Enhanced Supply Chain Efficiency: Reduced border wait times and
expediting customs clearance
-- Over the last few months, the CBSA actively communicated changes
impacting procedures for importing commercial goods into Canada.
-- In April 2024, the CBSA announced a phased approach in the
implementation of CARM as the official system of record for the
importation of commercial goods into Canada, starting with an
internal launch on May 13, 2024, and with an external launched for
trade chain partners in the Fall of 2024.
-- In May 2024, the CBSA announced that CARM would launch externally
and become the official system of records for the collection of
duties and taxes for goods imported into Canada on October 21, 2024.
-- In August 2024, the CBSA announced a series of transition measures
to ensure continued border fluidity and timely submission of
accounting and payment of duties after CARM implementation on
October 21, 2024. One of these measures concern the introduction of
a 180-day transition period to give importers and their service
providers time to adapt to the new financial security model and
avoid border disruptions.
-- To support CARM users, the Agency has been publishing updates to the
CARM bulletins web page, which allows users to stay informed of
important updates, such as planned outages, known issues, and resolution
times.
-- The CARM Client Support Helpdesk continues to be available to provide
support. To respond to the ongoing high volume of support calls the
Helpdesk team has added additional resources and dedicated a work flow
for CARM registration enquiries. User guides and the CARM Go-Live
Playbook are also available on the User Guides web page to help clients
navigate the CARM Client Portal. Clients requiring support for
Electronic Data Interchange or Application Program Interface may contact
the CARM Technical Support Unit.
-- The CBSA is the second-largest revenue generator for the Government of
Canada, collecting $40 billion a year in duties and taxes on all
commercial goods imported to Canada. The aged technology that was being
used to do this work was putting this revenue at risk. To address this
risk, the CARM project was initiated to update information technology
systems and processes.
-- The transition measure for late accounting penalties (LAPs) ended on
January 19, 2025. Trade chain partners are required to submit the final
accounting for their releases to ensure that they maintain RPP
privileges. The CBSA will resume daily monitoring of overdue
releases/missing final accounting, and may issue late accounting
penalties, assess duties and taxes based upon the release information
provided, and post monies owing to the business number owner's account.
Importers are invited to review our Customs Notice 25-02 on late payment
penalties and interest.
Associated Links
-- CBSA-accredited financial security providers
-- CARM: CBSA Assessment and Revenue Management project
-- Access the CARM Client Portal
-- CARM client service and helpdesk
-- Customs Notice 24-27: CARM October Implementation - Transition Measures
-- Bulletins - CARM
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SOURCE Canada Border Services Agency
