PwC | Satisfying requirements of the new Canadian CARM initiative

The CBSA Assessment and Revenue Management (CARM) is an initiative by Canada’s Border Services Agency (CBSA) to transform and modernize the collection of duties and taxes for commercial goods being imported into Canada. The initiative targets the revenue and cash management systems that currently are in place for assessing and collecting duties and taxes, and replaces them with a simplified process that includes electronic payment options.

Participation in the CARM is mandatory for all Canadian-resident and nonresident businesses that import goods into Canada and their trade chain partners (TCPs) that interact with the CBSA. Importers that do not participate will be prohibited from bringing goods into Canada. The CARM is expected to be operational in October 2023; importers should start preparing to meet the new requirements under the CARM to avoid unnecessary delays and interruptions to their importation activities.

CARM Release 1

In May 2021, as part of Release 1 of the CARM initiative, the CBSA launched the CARM Client Portal (CCP), a self-service tool to facilitate accounting and revenue management processes with the CBSA. The CCP can be accessed by importers, customs brokers, and certain trade consultants.

Under Release 1, organizations must register their business on the CCP, create a user profile/business account, identify and designate a Business Account Manager (BAM), and delegate authority to all their TCPs so that they can continue managing the organization’s commercial importation activities under the CARM. A TCP includes both (1) employees that are responsible for customs and trade compliance activities, and for the payment of the organization’s duties and taxes, and (2) service providers that help with any customs and trade-related activities (i.e., trade consultants and customs brokers).

The CBSA website for the CCP provides many tools to help businesses, including a worksheet for collecting the required information and completing the registration steps.

Note: The new measures being implemented by the CARM will not impact the process for releasing imported goods. This function remains with the business’ customs broker (if those services are utilized).

For more information, please contact:
Anthony Tennariello, Principal – Customs and International Trade Co-leader, PwC US
Maytee Pereira, Managing Director – Customs & International Trade services, PwC US

Compliments of PwC US – a premium member of the EACCNY.