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CARM: A Brief Introduction
As active members in the logistics, trade, and financial communities you have probably heard of CARM. What exactly is it and how will it affect trade with Canada?
CARM stands for CBSA Assessment and Revenue Management. It is a digital initiative that changes how CBSA will assess and collect duties and taxes on commercial goods imported into Canada. The goal is two-fold. One, to provide Canadian importers with a more stream-lined service and to allow them more insight into their transactions with the CBSA. This will be accomplished through the CARM Client Portal (CCP). Two, CARM will update the electronic systems used to communicate with CBSA. The new API is based on XML and is compliant with the standards held by the World Customs Organization.
It is important to note that the CARM initiative places more responsibility on the importer. Importers will no longer be able to rely on the bond of their Customs Broker and must instead supply their own financial security.
The road to CARM has been a complex one. Its release has been postponed several times. Recently, there was a Standing Committee on International Trade (CIIT) held in Parliament on March 21st, 2024. Participants included the Canadian Association of Importers & Exporters, Canadian Federation of Independent Business, The Canadian Society of Customs Brokers, Deloitte (the Canadian third-party building the CARM Client Portal), FedEx and UPS Canada. Participants expressed their concerns and frustrations with the new initiative. Most prevalent was the call to have a soft launch rather than a Big Bang approach (wherein CARM becomes the only valid system overnight with no leniency granted to those who have not yet met CARM’s criteria).
As of right now CARM is once again delayed. According to the CBSA, the setback is caused by strike vote activity now underway by the Public Service Alliance of Canada. It will now be October 2024 when CARM is expected to become the official system of record for importers and TCPs (Trade Chain Partners).
Rest assured, however, that CARM is on the horizon. Importers are encouraged to enroll as soon as possible to make the final transition run smoothly. If you would like more information on CARM, please contact Allyn International at sales@allynintl.com or 239-489-9900.
Contributor: Bronwyn Hayes, CCS
Allyn International Services, Inc. (Allyn) is a privately-owned supply chain management, tax and customs consulting firm established in 1992. Our services comprise of supply chain & logistics management, global trade compliance and US tax compliance. Allyn offers customized solutions to meet your global needs with offices in Fort Myers, Fla., Shanghai, PR China, and Prague, Czech Republic.