Effective October 21st, 2024 the CBSA Assessment and Revenue Management (CARM) system will become the official system for importers and other trade chain partners (TCPs) to account for their goods and pay applicable duties and taxes owed to the Canada Border Services Agency.
There will be a cutover period, which is required for the CBSA to migrate existing systems and functionality to CARM systems and functionality for the CARM October 21st, 2024 implementation. The CARM cutover period will extend from October 4th (4:00 pm ET) to October 21st (3:00 am ET).
During this time, the CARM Client Portal (CCP) will not be available. TCPs will not be able to onboard to the portal until availability resumes on October 21st.
The CARM Cutover (Blackout) Period: A Time for Preparation
During the cutover period importers will not be able to access their accounts, register their business account on the CCP, or delegate their customs broker access to their account. As a result, it’s essential to use this time wisely. Prepare your documentation, gather the necessary information, so that once the CARM client portal is back online you are ready to register your business account if you have not already done so.
Here’s a great resource.
The RPP Program: A Crucial Update
On October 21st, the CARM client portal will reopen, marking the beginning of the Release Prior to Payment (RPP) program’s 180-day grace period. All commercial importers who had an account with the CBSA as of October 4th, 2024 will be extended RPP privileges up to 180 days from October 21st, 2024.
The RPP program allows for the release of goods before final accounting and payment of duties and taxes. The 180-day grace period will give importers the time to set in place financial security to continue to participate in the RPP program once the 180 days has expired.
New importers that obtain a BN15 after cutover started on October 4th, will have to complete the RPP sub-program enrollment in the CARM Client Portal to benefit from the remainder of the 180 day Release Prior to Payment (RPP) transition period. It’s important to note that prior to the expiry of the 180-day grace period, importers will need to decide on a financial security option for them to continue to participate in the RPP program.Â
They will have the following options:
Option 1: A financial security instrument (i.e.Surety Bond) for 50% of their highest monthly accounts receivable (inclusive of GST) with a minimum financial security of $5,000 per import program (RM).
Option 2: A cash security deposit for 100% of their highest monthly accounts receivable (inclusive of GST).
When Release 3 launches on October 21st, 2024, the CBSA will inform importers through the importers business account the expected bond or cash deposit amount required for RPP program participation. The Welke CARM team can assist you with the calculation of the bond amount and facilitate the application and purchase of a surety bond.
Understanding Your CARM Statement of Account
Another critical topic that importers will need to understand is the statement of account generated by CARM. Understanding how to read this statement, reconcile it with invoices, and navigate payment options will be vital for businesses to stay compliant.
Welke’s accounting team is equipped to assist clients with inquiries regarding their statements. We can help clarify how to read your account details, which can be complex, and guide you through the payment processes. Knowing when and how to pay duties and taxes will ensure that your import operations remain seamless and compliant.
Accounting For Imported Goods: CAD will replace B3 and B2 forms.
A new commercial accounting declaration (CAD) will be introduced on October 21st, 2024. The CAD will serve as the digital document to account for imported goods into Canada, replacing the current customs coding (B3) and request for adjustment (B2) forms.
Any corrections or adjustments made to a CAD will be recorded as a new version of the original declaration. A CAD will not consolidate the same tariff classification numbers as did the B3 document.
Due to the CAD not recapping the same tariff classification number you may notice a large amount of invoice lines. The Welke team can create supplement transaction reports to support these new changes as well reports to help with the Statement of Account (SOA).
Welke CARM Portal Live Help
The transition to the CARM program represents a significant shift in how importers manage their accounts and navigate the customs landscape. With the blackout here, now is the time to prepare.
Our Welke CARM team can provide comprehensive support and guidance to ensure you efficiently manage your CBSA Assessment and Revenue Management (CARM) obligations. Whether you need assistance with features such as login to the portal, broker delegation, portal training or bond calculation, we offer tailored solutions to streamline your experience and maximize compliance.
We also offer an onboarding session for a flat fee, please let us know if you need our assistance with your business account registration in the CARM portal.
Trust us to simplify the complexities of CARM so you can focus on what matters most, your business. To sign up for Welke’s CARM Portal Live Help, please email us at carm@welke.com