Please be advised CBSA (Canada Border Services Agency) CARM (Assessment and Revenue Management) project is a “multi-year initiative” that will transform the collection of tax and duty for goods imported into Canada.
Through CARM the CBSA will modernize and streamline the process of importing commercial goods into Canada. The Customs broker will release goods only and collection of duty and GST will be done by CBSA direct with the Importer of Record.
The primary feature of CARM is the creation of a MyCBSA portal with planned release date is fall 2019 – actual date to be determined. When the portal is open it will be mandatory for importers will be required to register.
Importer security is a major change that is planned to roll out in 2021 – actual date to be determined. Please see below noted Press Release from the Canadian Society of Customs Brokers (C.S.C.B.) which explains mandatory Prior to Payment Bond.
“All importers will be required to post their own security to participate in the Release prior to payment (RPP) program. A commercial shipment will not be released prior to payment (of duties & taxes) unless the importer has posted a surety or cash bond. The CBSA is working on the conditions upon which releases will be impacted due to inadequate security. CBSA recommends that the amount of RPP security an importer (resident or non-resident) posts should be based on their highest historic monthly accounts receivable over a 12 month period, inclusive of duties, taxes (GST), fees, and penalties. It is the importer’s responsibility to manage and maintain the appropriate amount of RPP security relative to their accounts receivable, inclusive of duties, taxes (GST), fees, and penalties. The $10 million cap in place today will remain. An importer will have the flexibility to make interim payment to reduce their RPP security utilization and raise or lower their RPP security to account for seasonality or other fluctuations in their business.” Reprinted with the permission of C.S.C.B.
Confirm there is no action for importers to take today with exception to review the below noted web site which explains the CARM program details and which is updated regularly by the CBSA. https://www.cbsa-asfc.gc.ca/prog/carm-gcra/menu-eng.html.
As CARM details are available WorldWide Customs Brokers will continue to send updates. Please contact email@example.com with any questions. Thank you for working with KWE as your Canadian Customs broker!