CARM: What all importers need to know about CARM

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Route Article

Get ready for CARM – Secure a Release of Goods Bond

     CARM

In the March issue of Route we identified the 4 key aspects to registering for CARM (CBSA Assessment and Revenue Management).  All importers to Canada (whether resident or non-resident) must take certain steps – if not, they simply won’t be able to import into Canada once CARM Release 2 comes into effect (May/June 2022).

Universal Logistics will help our clients along the road to CARM to ensure a smooth transition.  The CARM initiative will be implemented in phases (or releases).

Here’s what you need to know to get ready…

1. Identify your company’s Business Account Manager(s) – BAM
2. Register your business in the CARM Client Portal
3. Delegate authority to your customs broker
4. Secure a Release of Goods Bond

In our April, May and June issues of Route we covered Steps 1, 2 & 3 (click on the links above to review those steps).  Today’s article focuses on Step 4, securing a Release of Goods Bond.

IMPORTANT:  Without the required bond, importers will be required to pay CBSA in advance for all duties/taxes prior to gaining release of imported shipments.  Universal Logistics can assist to obtain the necessary Release of Goods Bond upon request.

Navigate to the Delegation of Authority page on the portal and select “Manage pending third party requests”.

CARM requires all importers to post security with CBSA to guarantee the payment of duties and taxes before goods will be customs released (Release Prior to Payment – RPP).  This is similar to the current U.S. bonding model which requires all imports to have a valid bond posted.

Under CARM and effective at Release 2 (scheduled for May/June 2022), all importers must post security by way of a bond or a cash deposit to be eligible for RPP:

RPP Security Formula
Security for RPP can be provided in the form of a bond or cash deposit.  An importer’s requirements for each are as follows:

  1. Post a bond for 50% of their highest monthly AR with a minimum floor of $25,000 per RM.  For example,
    • if an importer’s highest monthly AR is $100,000, they will be required to post a bond for $50,000; or,
    • if an importer’s highest monthly AR is $20,000, they will be required to post a bond for $25,000.
  2. Post a cash deposit for 100% of their highest monthly AR.  For example, if an importer’s highest monthly AR is $5,000 or $30,000, they will be required to post a cash bond for $5,000 or $30,000, respectively.

RPP Security Calculation Timeframe
The current 12 month timeframes for calculating RPP security are from July 25th to July 24th, with updates required by October 15th of each year.  For consistency and simplicity, this model will continue.  For importers without 12 months of history, an estimation will be permitted as it is today.

CARM Client Portal

Importer security is mandatory for all importers at CARM Release 2 (scheduled for May/June 2022).  With over 250,000 importers requiring bonds, surety companies will be faced with an influx of bond requests within a relatively short period of time.

Contact Universal Logistics to help secure your bond electronically prior to the Release 2 deadline.

For more information on CARM Financial Security and FAQs click here.

For more details on CARM and for tips on how to get ready – visit our website or contact your Client Care Rep to discuss how the proper delegation of authority will streamline your import clearance process.

Quick Tip #11
Why theft is often a preventable loss

Thieves and pilferers identify high value shipments by looking for descriptive labelling, illustration or prominent trademarks and brand names.

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