Getting Ready for CARM Release 2: CBSA’s 2024 Digital Shift

The Canada Border Services Agency (CBSA) is moving forward with its digital transformation initiative, known as CARM (CBSA Assessment and Revenue Management), which will significantly change how duties and taxes on commercial goods imported into Canada are assessed and collected. This initiative is part of CBSA’s broader efforts to modernize and streamline customs and trade processes, aiming to enhance efficiency and security in the importation of goods into Canada.

Overview of CARM:

• Initial Launch (2021): Phase one introduced the ability for importers to view transactions, make online payments, track ruling progress, classify goods, and estimate taxes and duties online.
• Second Phase (April 2024): This phase will mark CARM as the official system of record for duties and taxes collection, introducing several new features including changes to the Release Prior to Payment (RPP) program, electronic commercial accounting declarations, harmonized billing cycles, new offsetting options, electronic management of appeals and compliance actions, registration for a Business Number (BN9), and enrolment in various CBSA commercial program. Register your business on the CARM Client Portal (the portal) before April 26, 2024. Get started with CARM

Implications for Businesses:

• Mandatory Registration: All businesses importing into Canada are required to register with CARM before April 26th, 2024, to avoid any disruptions.
• Educational Resources: CBSA has made available a wealth of resources including webinars, guides, and FAQs to help understand the changes.
• Testing Opportunity: Businesses are encouraged to participate in the CARM Release 2 sandbox environment for familiarization with the new system.

Key Considerations for Importers:

1. Compliance Deadline: Ensure compliance by the set deadline of April 26th, 2024.
2. Delegation of Authority: Assign necessary access within your organization and to your service providers.
3. Preparation and Testing: Utilize the sandbox environment for testing and get accustomed to the new functionalities.
4. Collaboration: Work closely with customs brokers and service providers to ensure they are prepared for the transition.
5. Stay Informed: Keep up-to-date with any new information or changes from CBSA as the implementation date approaches.

Benefits of CARM:

CARM Release 2 promises numerous benefits, including streamlined customs processes, improved transparency, and efficiency in the handling of duties and taxes for imported goods. The digital initiative is aimed at simplifying the importation process, making it easier for businesses to comply with customs regulations while enhancing the overall security and efficiency of Canada’s trade processes.

As the implementation date approaches, it’s crucial for businesses to take proactive steps to understand the implications of CARM, complete necessary registrations, and prepare for the changes to ensure a smooth transition to the new system. Collaboration with service providers and making use of available resources and testing environments are key strategies to minimize any potential disruptions during this transition period.