CARM – CBSA ASSESSMENT AND REVENUE MANAGEMENT

What is CARM ?

CARM (or CBSA Assessment and Revenue Management) is a project by the Government of Canada aiming to simplify and streamline the process of importing commercial goods into Canada.

CARM is intended to:

  • Simplify the importing process
  • Allow importers to manage their trade activity
  • Improve compliance with trade rules and regulations
  • Increase border security

What does this mean for importers?

It will be mandatory for all importers to register their business number and set up a client profile in the CARM portal. Once client profile is set up, the importer must delegate authority to their Customs Broker.  In addition, internal employee profiles and authority must also be delegated.

All importers will be required to secure their own Release Prior to Payment Surety Bond, the Customs Brokers bond will no longer be used. An importer must have their RPP bond in place prior to Release 2 (Spring 2022).  An Importer who does not have RPP bond in place, will be required to pay prior to release for any duty/tax outlay to CBSA. Under CARM, the liability of financial risk for duty and tax payments transfers to the Importer of Record. (Note: importer can obtain their bond directly with a Surety company, or HOC can arrange one for you)

Nothing will change with regards to the current release process. However, accounting processes will change. Under CARM, the new Commercial Accounting Declaration (CAD) will replace the current B3 accounting document and B2 adjustment form.

Under CARM  there  will be new billing cycles for the payment of duties, taxes and fees. These changes will require importers to change their internal accounting processes to ensure that they coincide with the new schedule.

The CARM project will be phased in 3 Releases:

CARM Release 0: January 2021

The existing ARL system will be moved from its current data centre configuration to the more robust SAP S4/HANA system. External users of the system will not experience any change. Importers’ Daily Notices may be delayed a few days during the implementation of Release 0 for Electronic Data Interchange (EDI) clients.

Release 0 has been completed

CARM Release 1: May 2021

Under Release 1 the CARM client portal will be available to importers and customs brokers. During Release 1, functions include:

  • Create and manage their accounts on the CARM Client Portal
  • Utilise HS classification Tool and estimate duties and taxes
  • view transactions posted to account
  • Make secure payments online via the portal
  • Delegate access to their service providers
  • Submit rulings requests and track their progress

CARM Release 2: May 2022

Under Release 2, and in addition to above, importers will be able to:

  • Register for a business number and enroll in CBSA programs
  • Obtain statements of account in real time
  • Submit a commercial accounting declaration, which will replace today’s custom coding (B3) and adjustment request (B2) forms. Corrections and adjustments will be available
  • post and monitor RPP bond (RPP bond must be in place PRIOR to Release 2 go live date)
  • Submit appeals and track their progress

CSCB Webinar Series: CARM for the Trade Community

The webinar series will cover priority subjects regarding CARM

The webinars in this series will be held on the dates below, starting at 1 pm EST. These sessions will be open to the public in addition to CSCB members, Preferred Business Clients and designates. Representatives from the Canada Border Services Agency have committed to be part of these sessions and our CSCB experts will always be in attendance!

CSCB CARM Webinar Series for the Trade Community Schedule of Events 2021

  • February 24th – Registering in the CARM Client Portal & Portal Functionality
  • March 10th – Delegation of Authority in the CARM Client Portal
  • March 24th – Release Prior to Payment Financial Security
  • April 7th – ARL & Payments Part 1: What you need to know about ARL & Payments between now and CARM Release 2
  • April 21st – ARL & Payments Part 2: What you need to know about ARL & Payments post CARM Release 2, including Disbursement Concepts
  • May 5th – Understanding Financial Statements in CARM: Which statements will be available in Release 1 & Release 2
  • May 19th – CAD Submissions, including Corrections & Adjustments

To sign up please contact our CARM team at carm@hocltd.com

For more information on CARM please visit the CBSA CARM website at https://www.cbsa-asfc.gc.ca/prog/carm-gcra/menu-eng.html or email us at carm@hocltd.com today!