Importers, do you enjoy getting your goods across the Canadian border in a timely manner? If so, then you should already have your financial security posted into the CBSA’s CARM system.
But if you don’t, you’ll have some trouble on May 20th.
To explain, let’s go back to October 2024, when the Canada Border Services Agency (CBSA) launched its Assessment and Revenue Management (CARM) system – one designed to relieve the ‘paper burden’ from importers and brokers and requires importers to deal directly with the CBSA on financial matters. CARM had some noteworthy changes, including a change to the Release Prior to Payment (RPP) Program which requires importers to post their own minimum bond (rather than rely on their customs broker’s) to clear shipments and receive release prior to accounting, tax, and duty payment.
On October 21, 2024, CARM became “the official system of record that importers and other trade chain partners will use to pay duties and taxes.” However, a 180-day transition period was implemented to give commercial importers time to post their financial security while still benefitting from the RPP Program (the CBSA tacked another 30 days onto that transition period in response to stakeholder feedback).
The 180 days (plus another 30 days) expires as of 3 am EDT on May 20, 2025. As per the CBSA:
Importers who do not post financial security in CARM by May 20, 2025, 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. Without RPP, importers will have to pay all duties and taxes before goods can be released.
Electronic enrollment in the RPP program has definite benefits: importers will not have to visit a commercial office to pay the duties and taxes owed to release their commercial shipments, and can avoid longer, paper-based processing times.
Many customs brokers are offering CARM bonds as an added service for their clients. If you’re an importer who has not yet secured your bond and need help, the CBSA has a list of licensed customs brokers on its website. If a customs broker already manages your shipments to Canada, contact them for additional direction.
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