Recently the Canadian border service agency has made changes in the way importers interact; have presented a new initiative (CARM) that is scheduled to come into force on May 13, 2024. Once the modification is launched, the CARM will be the only system for administration and management of obligations and tax collections for all imported goods, so every importer must comply with the 3 requirements that the new initiative requires.
1. Company registration on the CARM portal
According to the Canadian government, not all importers have been properly registered, so some benefits have been presented upon successful identification, such as access to financial data, expedited submission of applications and more. However, these resources cannot be used at the last minute, so it is highly recommended that importers act in advance to avoid last minute problems as well as delays at the border.
2. Delegate authority
As part of the requirements, importers are required to delegate authority to customs service providers. This allows them to act on your behalf through the portal. This also exists in addition to the General Agency Agreement, as well as the power of attorney (POA) that allows customs agents to conduct the exchange on behalf of the importer.
3. Establish financial security and prior release of payment privileges
An important change under the CARM portal requirements for importers is to publish or present their financial security, this will allow them to enjoy the benefits of the release prior payment (RPP) program which will force importers to no longer rely on the financial security of customs agents.
Such security may be in the form of a cash deposit, a customs bond or any other financial security instrument. If the importer lacks the possibilities to participate in the dynamics of prepayment, he will have to cover taxes and other expenses to release his goods. A transition period of 180 days is granted that will allow importers registered on the portal before the end of May 2024
If your company already exports to Canada or are thinking about entering this market and do not know the details of this new provision, one of our logistics specialists can gladly provide you with free advice.