#121 Preparing for CARM: Changes in Canada's Importing Process
Sep 24, 2024
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Sheila Thompson, President of Rosenberg & Parker of Canada, and Cristina Hagivreta, Surety Manager at Trisura Guarantee Insurance Company, discuss the transformative CARM initiative reshaping Canada's importing process. They emphasize the shift from customs broker bonds to importer bonds and the necessity of navigating the new CARM Client Portal. With the upcoming October 21, 2024 deadline, they highlight the importance of preparation, communication, and compliance for importers, offering insights into updated bond requirements and the resources available for adapting to the changes.
The CARM initiative mandates that Canadian importers now post their own bonds, significantly changing the bonding process and increasing financial responsibilities.
Importers must register for essential identifiers and navigate the CARM client portal ahead of the October 21, 2024, implementation date to ensure compliance with the new importing regulations.
Deep dives
Understanding the CARM Initiative
CARM, which stands for the Canada Border Services Agency Assessment and Revenue Management, represents significant changes in Canada's importing processes. This initiative arose from an assessment revealing that Canada was undersecured regarding bonding, leading to the requirement that importers must now post their own bonds rather than relying solely on customs brokers. The CARM client portal is being introduced to facilitate this process, requiring importers to register and secure essential identifiers, like Canadian business numbers and RM numbers, before they can effectively navigate the new system. The upcoming October 21, 2024, launch marks a transition period that will necessitate compliance from all importers, emphasizing the immediacy of adapting to the changing regulatory landscape.
Preparing for Changes in Bond Requirements
As the CARM initiative takes effect, importers will face new obligations regarding the financial security they must provide, with minimum bond amounts starting at $5,000 and going up to $10 million based on their highest monthly accounts receivable. If importers lack transaction history, they will be required to self-assess their security needs, which could lead to variability in bond amounts. This new structure includes a grace period following the CARM 3 launch, allowing delayed compliance while ensuring a smoother transition for businesses unfamiliar with the new requirements. Ultimately, ongoing communication from the Canada Border Services Agency will be crucial in guiding importers through this adaptation.
Navigating Registration and Compliance
For effective compliance with the CARM initiative, companies exporting goods to Canada must acquire a business number and an RM number, with processes shifting to the Canada Border Services Agency in contrast to previous protocols. Additionally, specific types of businesses, even those exporting minimally, are expected to register in the CARM portal to avoid delays in transactions as the deadline approaches. With the potential for a high influx of registrations leading up to October 21, early preparation is emphasized, and consultations with surety brokers are recommended for the best guidance. Channels for further support include the CARM assistance hotline and ongoing updates from CBSA to keep importers informed of any changes.
In this episode of Let’s Get Surety®, we discuss the ongoing changes in Canada's importing process with Sheila Thompson of Rosenberg & Parker of Canada and Cristina Hagivreta, Surety Manager at Trisura Guarantee Insurance Company. They delve into the new Canada Border Service Agency Assessment and Revenue Management System (CARM), a timely initiative that shifts Canada from a process focused on customs broker bonds to importer bonds. Our guests also discuss the implementation process of CARM, covering its electronic nuances and practical adjustments required by importers and surety companies as the changes are set to go into place on October 21, 2024. For more information and to stay up-to-date on these dynamic changes check out the Canada Border Service Agency's CARM resource page.
With special guests:
Sheila Thompson, President, Rosenberg & Parker of Canada, Inc. and Cristina Hagivreta, Manager, Surety, Trisura Guarantee Insurance Company
Hosted by:
Kat Shamapande, Director, Professional Development, NASBP and Mark McCallum, CEO, NASBP
