CARM Hub: Simplified Guide for Businesses Importing into Canada

DAYS

Until CARM goes live

Blackout period starting: From October 4 (4:00 pm ET) until October 21 (3:00 am ET)

CARM

What is CARM?

CARM (CBSA Assessment and Revenue Management) is a new system from the Canada Border Services Agency (CBSA) designed to streamline and simplify the importation process. It provides a digital platform for businesses to manage customs duties and taxes, making it easier for small and medium-sized businesses to comply with regulations and efficiently manage their accounts through the CARM Client Portal (CCP). Visit the Government of Canada CARM Website.

CARM Client Portal

What is the CARM Client Portal?

The CARM Client Portal (CCP) is a secure Canadian Government website where importers can view their accounts, make payments, submit rulings and appeals, and manage compliance activities.

Importance of carm

Why is CARM Important?

CARM modernizes the Canadian customs clearance process, offering greater transparency and control over import operations. Just like income taxes, businesses will need to remit duties and taxes directly through their CARM account, reducing dependency on customs brokers for these payments. This system ensures compliance with CBSA regulations and helps prevent delays and penalties.

impacted by CARM

Am I impacted by CARM?

CARM applies to all businesses (both resident and non-resident) that import goods into Canada for commercial purposes. It does not impact personal importers, including those importing vehicles or other personal items for private use. Personal importers will continue with existing processes and are not required to register for CARM.

Is carm for me?

I am a Business, but I Only Import A Few Items Per Year, do I Have to Participate?

Yes, all commercial importers must register for CARM, regardless of how often they import goods into Canada. This is necessary to continue importing goods commercially and to manage duties and taxes efficiently.

Important dates

What are the important dates?

October 21, 2024: This is the launch date for CARM Release 2. By this date, all businesses importing goods into Canada must be registered on the CARM Client Portal (CCP).

April-2025: The 180-day period after October 21, 2024, is a transition period given to businesses to comply with the new CARM requirements, specifically posting the required financial security. This financial security is crucial for businesses to participate in the Release Prior to Payment (RPP) program, which allows importers to have their goods released before paying duties and taxes. More information about this phase will be available in September 2024.

Impacts

How will CARM impact my business?

If you are registered for CARM by October 21, 2024:

You will pay Duty and Taxes directly to the Canadian Government, not your Customs Broker: Under CARM, businesses must pay these fees directly to the government, shifting financial responsibilities from brokers to the importers.
You will need to obtain a Financial Security Bond (a.k.a., Customs Bond) to act as security against government credit: Importers must provide financial security, such as a surety bond or cash deposit, to benefit from the RPP program, which allows goods to be released before payment of duties and taxes.
You may Experience Service Disruptions: Around key dates, expect import delays as new systems and processes are rolled out. To minimize impacts, import early, provide paperwork in advance, fully register your account, and have financial resources (cash in bank, high limit credit card, line of credit) ready - to pay the government directly, quickly, just in case.

If you are not registered by October 21, 2024:

Import Disruptions: If you don’t register, the worst case is that you cannot import your goods and the best case is that you’ll be able to import, but you’ll have to pay all the duty and tax at the time of import instead of on NET terms with your broker. When you do register, you’ll need to get a customs security bond (which BorderBuddy can do for you)

Steps

How do I register for CARM?

Step 1

Create a Government of Canada Key (GCKey) on the CARM Client Portal.

Step 2

Create a username and password for your organization.

Step 3

Create a personal profile.

Step 4

Link your CRA business account to your CBSA CARM account.

Step 5

Email us at carm@borderbuddy.com to set BorderBuddy up as your Customs Broker in the CARM system.

Step 6

In the CARM Portal, you will be asked to assign roles within your organization, which allows you to select which employees have access to which CARM functions.

Business account manager (bam):

This is the most important role that is assigned internally. Remember, it is a good idea to have a minimum of 2 BAMs.

Automatically defaults the first individual to link their account to the business as the designated BAM.
Highest visibility and access in the CCP
Operates at the BN9 or enterprise level
Manages all import/export program accounts (RMs)
Able/responsible to set up your business account and all other relevant accounts and roles within CARM

Program account manager (pam):

This is the secondary-level delegation available internally. The PAM manages your import programs at the RM (import/export account) level

EDITOR: This individual’s role can perform operational activities in the program assigned.
READER: The individual in this role can simply view operational activities in the program assigned.

Once you’ve determined who your BAM and PAM internally will be, and delegated the appropriate access levels to your employees, you now have to provide external delegations (customs brokers, consultants, etc.). They will require access to the import/export programs inside the CCP. You need to assign which contact/service provider has access to which import programs, and what type of access.

Step 7

Delegate Access BorderBuddy so we can clear customs on your behalf.

CARM shifts more responsibility from the customs broker directly onto the importer. Certain tasks and functions that you’re used to BorderBuddy providing, are now going to be required to be completed by you as the importer - particularly remitting payment to the government.

The process of delegation allows you to assign / authorize access to BorderBuddy to submit customs entries (clear goods through customs) to the Canadian government (CBSA) on your behalf. Note: If you have multiple customs brokers, you will need to delegate access to each Customs Broker.

Business Management Relationship - Allows BorderBuddy access to all of your importation program accounts, including programs that may be added in the future. This is the simplest thing for your business.Note: This does not share or grant access to any of your company’s sensitive information, like bank accounts, user profiles and any business relationships.

Step 8

Obtain a Financial Security Bond (Customs Bond), by April 2025.
More detailed information will be available in October 2024.

Requirements

What do I need to have ready?

Have all the information in the CBSA CGKEY registration form ready to ensure a quick account creation process. This information is:

CRA Business Number (BN):

Your unique identifier assigned by the Canada Revenue Agency (CRA) to your business in Canada. It is used for tax purposes and must be provided during registration.

Legal Entity Information:

This includes the official registered name of the business, as well as the legal structure (e.g., corporation, partnership, sole proprietorship). CARM may ask for legal documentation that defines the ownership and operational details of the business.

Contact Details:

Your business's mailing address, phone number, and email address. These details must match the information on file with the CRA and CBSA to avoid discrepancies during the registration process.

Import/Export Program Account (RM Account Number):

For businesses involved in importing or exporting goods, this number is crucial for managing customs-related activities.

Details of Recent Imports:

You will need to provide a Transaction Number or Entry Number from a past import. It's recommended to use a transaction from within the last three years. Additionally, the total amount of duties and taxes paid (found in Field 51 on Form B3) for that transaction is required. This information helps the CBSA verify your importing activities and ensures that your business's profile on the portal is accurate.

You can get this from a previous CBSA B3 invoice form if you have one handy. If you don’t have one, you can contact the customs broker who cleared that shipment for you, or by contacting the CBSA and asking for a copy of an old B3 invoice.

Call the CBSA: 1-800-461-9999 (toll-free in Canada and the USA )

Complete the CBSA CARM contact us form

Email the CBSA CARM office.

Why us

How can BorderBuddy help me get set up?

You can navigate this process yourself, but if you need assistance, BorderBuddy offers support. Typically taking less than 60 minutes, Our CARM specialists can guide you through registration via video call (Zoom, Google Meet, Microsoft Teams, or Slack) for $200 per setup prior to September 1, 2024; and $300 after September 1.

Extras

Where can I find more information?

There are various ways to gather further information relating to the CARM initiative which is created and maintained by the CBSA:

Register for CARM Webinars!
CARM Document Hub
Frequently Asked Questions (FAQs)
CARM Client Support Help Desk

For additional details or to schedule a session with a BorderBuddy CARM specialist, contact us at carm@borderbuddy.com.