An Importer’s Guide to CARM
The CBSA Assessment & Revenue Management (CARM) Project will affect all importers in Canada & those importing into Canada. Find information, tools, and services below that you’ll need to navigate this monumental change to how you import.
LATEST NEWS
Revised: November 21, 2024
CARM IS NOW LIVE
CARM Launch Complete Information c/o: Canada Border Services Agency The Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) program is now the official system for all importers and trade partners for all goods coming into Canada. As of Oct. 21, all duties and taxes must be paid directly to CBSA. Key Points: For more information, please visit CBSA’s CARM website.For…
THE FACTS
CARM is Mandatory for ALL Imports into Canada
The implementation of the CBSA’s CARM has fundamentally changed the importing process in Canada. Whether you are a frequent importer or making a one-time import, it’s crucial to understand the steps needed to adapt to these changes.
Customs brokers such as PF Collins can still complete customs entries and releases on behalf of importers. However, importers now bear more responsibility in terms of compliance with CBSA requirements.
Steps for Compliance
Register in the CARM Client Portal
All importers must register their business in the CARM Client Portal and delegate authority to their customs broker. This is necessary for brokers to transact with CBSA on their behalf.
Obtain Financial Security
Importers are required to post their own financial security with CBSA to maintain the Release Prior to Payment (RPP) status. Options include an annual surety bond or a cash deposit.
Make Payment Arrangements
Importers must pay duties and taxes directly to CBSA. Delays in payment may result in goods being held at the border. Consult your customs broker to determine the best payment method.
For help completing these steps, continue to:
Be Aware of the Risks
Business Disruptions
There are many risks associated with delaying your business’s CARM registration and there is a lot at stake for your importing activities. You will experience business disruptions and your goods will be held at the border if you do not comply and act as soon as possible. Take action now to avoid these potential impacts on your business.
Goods Will Be Delayed
If your business does not complete the steps for compliance, your goods will not be released at the border – regardless of the help of your customs broker. Delays in release of goods can result in disruption to your business, unhappy clients, & non-returning customers.
OUR CARM SERVICES
Looking for help registering for CARM? PF Collins is offering three CARM registration assistance services to help you navigate the changes occurring with the implementation of CARM and ensure you business is ready.
FREQUENTLY ASKED QUESTIONS
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. It is the most significant change in the Canadian importing process in over 30 years.
Through CARM, the Canada Border Services Agency (CBSA) intends to modernize their accounting and data management systems to:
- Simplify the importing process
- Allow importers to manage their own trade activity
- Improve compliance with trade rules and regulations
- Increase border security
CARM affects everyone in the trade community – from importers and customs brokers to freight forwarders and carriers. The following provides an overview of CARM, how it affects your imported shipments, and how you can register to the CARM Client Portal
CARM presents significant changes for both Canadian and Non-Resident businesses importing commercial goods into Canada. As a result, all importers must:
- Register to the CARM Client Portal
- Post their own financial security (surety bond or cash deposit) to participate in the Release Prior to Payment Privilege (RPP) program. (Your shipments will no longer be able to be released under your customs brokers’ import bond.)
- Review internal accounting processes to align with changes in billing cycles for the payment of duties, taxes, and fees.
Being registered in the CARM Client Portal and securing your own financial security is required to be able to import into Canada. If you do not register early, you will experience delays with your shipments or your shipments will not be released.
The CARM Client Portal is an online, self-service portal that allows Canadian importers (or Customs Brokers on their behalf) to monitor and manage their import transactions and duty/tax payments to CBSA.
RELEASE 1
The CARM Client Portal opened for all Canadian importers to register on May 25, 2021
After registering, you (or PF Collins on your behalf) will be able to complete the following:
- View transactions posted to your account
- Pay duties, taxes, and fees by credit card or set up pre-authorized debit*
- Delegate portal access to employees and PF Collins
- Request and monitor Advanced Ruling requests
- Classify goods and estimate duties and taxes
(Note: CBSA will not accept classifications and duty/tax estimates done on the portal as binding)
Note: In order to import, all businesses must obtain an Import/Export account. Once you obtain your BN account then you may access the portal.
*Please contact us at carm@pfcollins.com prior to making any payments through the portal.
RELEASE 2
In October 2023, the CARM Release 2 system was made available for selected industry partners who want to test their own internal systems, and for software service providers to continue to certify their software with CARM
CARM Release 2 is intended to expand the features of the CCP by allowing users to:
- submit, correct and adjust an electronic commercial accounting declaration (CAD) that will replace the current customs coding form (B3) and request for adjustment form (B2)
- post and monitor security to participate in the Release Prior to Payment (RPP) program as importers will no longer be able to rely on their customs’ brokers bond to participate in the RPP program
- register for a Business Number and enroll in various CBSA commercial programs
- electronically manage appeals and compliance actions
CARM Release 2 will also introduce harmonized billing cycles. The Statement of Accounts (SOA) will be generated on the 25th of each month and generally the payment due date will be 10 weekdays after the 17th of the month.
In preparation of CARM Release 2, all importers should register and become familiar with the CCP to minimize border delays and benefit from the RPP transition period. One of the biggest changes introduced by CARM is that importers will need to post their own financial security in order to be eligible for RPP and will no longer be able to rely on their customs broker’s bond. However, all importers who register on the CCP before May 2024, will be assigned RPP qualifying status for a 180 day transition period. During this time, commercial importers will be able to obtain RPP of duties and taxes even if they have not yet posted their own financial security.
OFFICIAL RELEASE
As of October 2024, it is mandatory for all importers to be registered to the CARM Client Portal to manage customs releases and submit payments.
New features for invoicing and payments will be added and you will now be able to:
- Obtain a Business Number and program account (BN15 RM account and/or Program ID)
- Submit and adjust a Commercial & Accounting Declaration (CAD). (Note: Customs release requests are not possible in the portal)
- Post financial security to participate in the Release Prior to Payment (RPP) program
1. Identify Key Users in Your Organization
Before registering to the CARM Client Portal, we recommend identifying the key members of your organization that will be using the portal. This will include not only individuals involved in customs activities, but also accounting staff and executives.
Features available in Release 1 will relate to post-customs release activities, such as viewing your Statement of Account and making payments. Therefore, your accounting staff will need access for these functions. Supply chain and logistics personnel will have a lesser need to access the portal.
These operational considerations will be important when you delegate user roles within the CARM Client Portal. We provide more information on delegating User Roles below.
2. Obtain GCKeys for Designated Users
Once you have identified the key users within your organization, they will require login credentials. To login to the CARM Client Portal, each user must obtain their own GCKey or login through a Sign-In Partner:
- A GCKey is a unique, electronic credential issued by the Government of Canada that allows you to securely access online government services, called Enabled Services.
- Sign-In Partners are private sector financial institutions that allow you to login to Government of Canada online services using your existing online credentials (e.g., bank card numbers or usernames/passwords, etc.)
Recommendations for Using GCKeys and Sign-In Partners
- You can only sign up for a GCKey through an Enabled Service, such as the CARM Client Portal.
- GCKeys are issued to individuals and are personal credentials. You may already have a GCKey through other Government of Canada departments, such as CRA, Service Canada, CERS, etc. However, we highly recommend you obtain a separate GCKey for the CARM Client Portal through the portal itself.
- Sign-In Partners are select Canadian Financial Institutions. Login with these partners is done using an individual’s personal banking information. We do not recommend using this method as the same login is used to access an individual’s personal accounts with other government services (e.g. CRA).
3. Designate a Business Account Manager (BAM)
To register your company in the CARM Client Portal, you will need to delegate a Business Account Manager (BAM) to complete the registration process and provide access to other users. Important considerations when determining your BAM include:
- The person registering your company will automatically be granted BAM level of authority. Therefore, they will possess the highest level of management access over your account.
- The BAM manages all user access and has full control over your company’s profile, business and program accounts with the CBSA.
- The BAM will need the required legal information to link their user account to your business account in the portal, such as GST Registration or Articles of Incorporation.
- After registration, we recommend immediately assigning a second BAM to the account as a backup. Assigning a minimum of two BAMs ensures you do not lose access to your CARM Portal account should an employee leave.
4. Verify Your Company Name and Address
To register to the CARM Client Portal, your company name and address must exactly match your Business Number profile. Therefore, prior to registration to the portal, you should verify that your company name and address matches your Business Number profile. You can do this by contacting CRA Business Accounts at 1-800-959-5525 or through the CRA My Business Account web portal
5. Designate PF Collins as Your Customs Broker
Once you register to the CARM Portal, you will need to give us access to manage your import activity on your behalf as your Customs Broker within the portal. If you require assistance in determining what import activities we conduct for you, please contact us at 1-(800)-763-2255 or carm@pfcollins.com
6. Review Your Business Processes
CARM will change the way you manage your imports. As a result, it will require planning and changes to your business processes. For example, some questions to consider:
- Who will manage the CARM Client Portal?
- Is your bank setup to receive and transmit payments to CBSA?
- Who will be reviewing your Daily Notices and Statements of Account?
- What changes to your accounting practices are needed to meet CBSA payment deadlines?
Furthermore, ensure your accounting and executive teams are aware of their responsibilities and financial security regulations/obligations.
7. Obtain a Security Bond
Prior to Official Release, you will need to obtain a financial security. CBSA requires a customs bond to cover duties, taxes, and fees owing on goods imported into Canada. Duty and taxes must be paid prior to release if financial security is not provided through a bond.
You can purchase a customs bonds from a surety company. Or, alternatively, we can also arrange one for you. If you need assistance in applying for a security bond, please contact us at 1-(800)-763-2255 or suretybond@pfcollins.com
CARM User Roles
Your BAM will have to delegate authority to additional users. The following table describes each user role within the portal and their level of access. When referring to the CARM user roles, there are two (2) different levels of access:
- Business Account access refers to the BN9 level or corporate/enterprise level of your business number/account (e.g., your 9-digit business number 123456789).
- Program Account access refers to the BN15 level or a specific program identifier level. For example, your importer account/program is identified by the letters RM. (e.g. your 15-digit importer account 123456789RM0001).
| User Role | Responsibility | |
|---|---|---|
| Employees | ||
| Business Account Manager (BAM) | – Automatically the first person to register your account. – Full management access. – Should be the employee most actively involved in managing your imports. – We recommend assigning a minimum of two (2) BAMs. |
|
| Program Account Manager (PAM) | – Full access to all portal functions for a program account. – Manages program accounts alongside the BAM. – Grant access to users. – Performs all operational activities related to the program account they manage. |
|
| Editor | – Create, edit, and view all transaction information for a program account. | |
| Reader | – View all transaction information for a program. – Not able to create or edit information. |
|
| Third Party Service Providers (e.g. PF Collins) | ||
| Third Party Business Account Manager (pBAM) | – Full access to your business and all program level accounts. – Automatically assigned to the BAM of a service provider when approved by you. – Perform operational activities and manage their own employee access to your accounts. – Do not have access to your sensitive information or employee/business relationships. *PF Collins will need this level of access to act on your behalf as your Customs Broker. |
|
| Third Party Program Account Manager (pPAM) | – Full access to the program account they manage. – Automatically assigned to the BAM of a service provider when approved by for a program management relationship. – Perform operational activities and manage their own employee access to your accounts. – Do not have access to your sensitive information or employee/business relationships. |
|
| Third Party Editor | – Create, edit, and view all transaction information for a program account. | |
| Third Party Reader | – View all transaction information for a program. – Not able to create or edit information. |
|
| Unassociated User | – Registered users that have not linked a business or been accepted as employee of a business. – Do not have a user role. |
|
Canada Border Services Agency Onboarding Documentation:
- Onboarding to the CARM Client Portal User Guide
- Registering a Business on the CARM Client Portal Information Sheet
- How to Contact CBSA Client Support Information Sheet
- Delegation of Authority User Guide
- Financial Information and Payments on the CARM Client Portal User Guide
- Managing Rulings User Guide
Additional Resources
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