The Changing Landscape of Customs – A New Era for Importers
Over the past few weeks, Canada’s Customs Accounting Revenue Management (CARM) has officially rolled out, introducing substantial changes to how importers interact with the Customs and Border Services Agency (CBSA). If you’ve been following the updates, you may have noticed that many of the processes that used to be handled by your customs broker have now shifted to you, the importer. This can feel overwhelming to keep up with, especially when the changes are not clear at first glance.
But don’t worry, we’re here to break down these changes, explain what they mean, and offer tips on how you can smoothly navigate this transition. Whether you’re a seasoned importer or new to the game, we’ll help you understand how CARM impacts your daily operations and, more importantly, how Ramsay Customs and Logistics can assist you during this pivotal shift.
From Broker-Paid Taxes to Importer Self-Payment – What’s Changed?
Before CARM was implemented, the process of paying taxes and duties was straightforward for importers: the broker handled the payments and passed them on. The broker submitted payments on your behalf, and importers didn’t need to engage directly in the transaction. Fast forward to the present, and the system has completely flipped.
Now, with CARM, importers are responsible for logging into their own CBSA CARM portal to pay taxes and duties. Payments can be made via credit card, pre-authorized debit, or online banking, giving importers more direct control over the process. However, it’s important to note that not all financial institutions are approved for online bill payments by CBSA. Most credit unions, for example, aren’t on the approved list, which can be a significant roadblock for some businesses.
At Ramsay Customs, we’ve developed solutions to help importers who may face challenges with credit card payments or online banking. If your financial institution doesn’t support direct payments to CBSA, don’t worry—reach out to us, and we’ll guide you through alternative options to make your transactions smooth and stress-free.
The New Power of Attorney (POA) and CARM Broker Delegation Requirements
Another significant change introduced by CARM is in how final accounting submissions are handled. Pre-CARM, brokers only needed to submit the final accounting with a Power of Attorney (POA) from the importer. This POA gave the broker the authority to represent the importer in customs matters. However, CARM has added an extra layer of complexity.
Now, brokers cannot submit final accounting without the POA and broker delegation in the CARM portal. This new requirement means that the broker must have explicit authorization through the CARM portal to handle the final accounting on your behalf. Without this delegation, the submission can’t proceed.
For many importers, this change has caused confusion, but it’s critical to understand. If you’re working with Ramsay Customs, rest assured we’ve got your back. We’ll make sure all of the necessary paperwork, including the new CARM broker delegation, is in place so your shipments stay on track.
The Release of Goods – Shifting Responsibility
Previously, brokers were responsible for holding the release prior to payment (RPP) bond. The bond the broker held with CBSA allowed for the broker to submit the entry and then guarantee taxes and duties would be paid by the broker each month. This gave importers a sense of security, as brokers were responsible for the payments, and the importer only needed to pay their invoice to the broker. However, CARM has put the responsibility for securing the RPP bond squarely on the importer.
Now, importers must obtain their own release prior to payment—either through a written bond or by posting a cash bond directly with CBSA. This means that importers now need to be proactive about securing the necessary bonding before goods can be released into Canada.
While this might sound like a heavy lift, Ramsay Customs is here to help. We offer guidance through the bond application process, ensuring you have the correct bond for your import needs. We’ll explain the different types of bonds available and help you choose the one that best suits your business strategy. We’ll also walk you through the steps so that you can confidently secure your release and avoid delays.
How Ramsay Customs Can Help You Navigate CARM
The good news is that Ramsay Customs is committed to supporting you during this transition to CARM. Here’s how we can assist:
- Bond Application & Requirements: If you’re unsure about what kind of bond your business needs, don’t hesitate to reach out. We can guide you through the process, explain the different options, and help you choose the best bond for your import strategy.
- One-on-One Support for Importers: For any importer with a Power of Attorney (POA) with Ramsay, we offer one-on-one meetings to walk you through the CARM bond setup process at no additional charge. This is especially important because some brokers are charging high fees for support. Our goal is to build a relationship of trust, ensuring you know exactly who to reach out to when you have questions.
- Assistance with CARM-Related Delays: If you’re currently experiencing delays related to CARM, we can help. Don’t let CARM-related hurdles stop your shipments from moving smoothly. We’ve tackled many of these challenges already, and we’re ready to support you with practical solutions. For more information, check out our previous blog post about switching brokers if you’re feeling uncertain about your current customs partner.
Adaptation and Support Through CARM Changes
In conclusion, the rollout of CARM has brought several changes that may feel overwhelming at first. From managing your own tax payments to understanding the new requirements, navigating the complexities of customs clearance under CARM requires a solid understanding of the new rules. However, you don’t have to go in it alone.
At Ramsay Customs, we’re here to guide you every step of the way. Whether it’s helping you navigate the bond process, assisting with payment issues, or answering any questions you might have about CARM, we’re committed to making sure your business adapts seamlessly to the new system.
If you have any questions or need assistance, feel free to reach out to us. We’re always happy to help! Contact us today!