CARM Set to Transform Canada Imports

Posted on

This article has been updated.

AAFCPAs would like to make clients aware of a significant new requirement related to Canada customs. The Canada Border Service Agency (CBSA) Assessment and Revenue Management (CARM) is a new initiative, which is expected to notably transform how importers interact with Canada Customs.

Importers should be aware that CARM will shift financial liability to the importer of record, which is an entirely new approach. Both residents and non-residents importing into Canada will be required to register and obtain surety bonds prior to CARM’s anticipated go-live. All importers of commercial goods are required to participate in CARM, register on the portal, and obtain a customs surety bond once live. The portal has already been established and is available to importers, brokers, and consultants. It is critical that the amount of your bond covers the estimated duties and taxes against your highest month of import activity. Importers failing to comply will not be allowed to import commercial goods into Canada.

On April 19, 2024, the Canada Border Service Agency (CBSA) announced that the Canada Assessment and Revenue Management (CARM) system will go live as intended on May 13, 2024 but only for internal CBSA use. The announcement indicated that the larger trade community (e.g., importers, brokers, couriers, and service providers) will continue to operate as they currently do until October 2024 but will need to be fully ready to use CARM at that time.

Due to the magnitude of this change and the number of importers affected, AAFCPAs highly recommends that businesses begin the registration process sooner rather than later. 

If you have questions, please contact Kelly Zack, MST, Director, State & Local Tax at 774.512.4001 or kzack@nullaafcpa.com—or your AAFCPAs Partner.

Correction

May 8, 2024

Since an earlier version of this story was published, CARM’s anticipated go-live has been extended from May 2024 to October 2024. Information has been updated here.


About the Author

Kelly Zack, MST

Kelly is a senior leader in AAFCPAs’ Commercial Tax practice. She advises individuals, partnerships, corporations, nonprofits, and trusts operating in multiple states and municipalities on opportunities to save tax dollars through advanced tax planning and risk mitigation. This includes the identification of all location-specific tax incentives and credits that could impact business entities and their owners. Kelly brings expertise in nexus analysis for income/franchise tax and sales and use taxes along with the analysis of state …