The New Era of Canadian Customs: Understanding CARM and What It Means for U.S. Exporters

If you're a U.S. exporter doing business with Canada, there's a significant change you need to know about.

Starting October 21, 2024, Canada's Assessment and Revenue Management (CARM) system became mandatory for all businesses importing goods into Canada. Let's break down what this means for you and how to stay compliant. This applies for LTL, Truckload, Flatbed, Reefer, Rail, Air and Ocean shipments into Canada.

What is CARM?

CARM is Canada's modernized customs platform designed to streamline and digitize the import process. Think of it as a one-stop digital portal where importers can manage everything related to their Canadian customs transactions. The Canada Border Services Agency (CBSA) developed this system to enhance transparency, simplify compliance, and improve the overall import experience.

Why Should U.S. Exporters Care?

If you're exporting to Canada as a Non-Resident Importer (NRI), CARM registration isn't just another bureaucratic requirement – it's essential for continuing your Canadian business operations. Without proper registration, your shipments could face delays, returns, or even costly penalties at the border.

Setting Up Your CARM Account: A Step-by-Step Process

1. Get Your Business Number

First, obtain a Business Number (BN) and Import/Export Program Account from the Canada Revenue Agency (CRA). This is your unique identifier for all Canadian customs transactions.

2. Register on the CARM Client Portal

Create your account on the CARM Client Portal. You'll need:

- Your Business Number

- Company information

- Legal documentation proving your business identity

- Contact details for key personnel

3. Set Up Delegation of Authority

Determine who in your organization needs access to the portal and set appropriate permission levels. You can also delegate authority to your customs broker as well. This is crucial for managing your customs activities effectively.

Key Benefits of CARM

- Real-time access to your customs information

- Direct management of your customs bonds

- Simplified payment process for duties and taxes

- Better visibility into compliance requirements

- Streamlined communication with CBSA

Best Practices for Compliance

- Keep your CARM portal information current

- Regularly review your customs transactions

- Maintain accurate documentation

- Stay informed about Canadian customs regulations

- Work closely with your customs broker

Financial Considerations

Under CARM, you'll need to manage your customs bonds differently. The system allows for direct posting of security deposits and offers more flexibility in managing your financial securities. Consider consulting with your financial team to determine the most cost-effective approach for your business.

Time-Sensitive Actions

Don't wait until the last minute to register. The October 21, 2024 deadline is firm, and early registration allows time to resolve any issues that might arise. Start gathering your documentation and familiarizing yourself with the system now.

Getting Help

The CBSA offers support resources including:

- Technical documentation

- Training materials

- Help desk support

- Regular webinars for businesses

The Bottom Line

CARM represents a significant shift in how Canada manages imports, but with proper preparation, it should make your customs processes more efficient and transparent. Stay ahead of the curve by registering early and ensuring your team understands the new requirements.

Remember, non-compliance isn't an option if you want to continue smooth operations with Canadian customers. Take the time now to understand and implement these changes – your future self will thank you for it.

For the most current information and specific questions about your situation, consider attending one of CBSA's informational webinars or consulting with a customs broker familiar with CARM implementation.