On October 21st, 2024, the Canada Border Services Agency (CBSA) will implement CARM R3 (Release 3), a major change in how customs duties and taxes are accounted for. This new system will streamline customs operations but also introduce mandatory requirements for all importers, both resident and non-resident. As the deadline approaches, it’s crucial for Calgary importers to understand the upcoming changes, how they will affect operations, and what steps they need to take to ensure a smooth transition.
In this blog, we’ll break down the key points you need to know about CARM R3, important dates to remember, and the potential impact on your import operations.
1. What is CARM R3 and Why is it Important?
CARM (CBSA Assessment and Revenue Management) R3 is the third phase of a new program designed by CBSA to improve and modernize the collection of customs duties and taxes in Canada. The primary aim of CARM is to streamline the import process, enhance compliance, and provide better online tools for importers to manage their accounts.
For Calgary importers, this is a mandatory program. Whether you’re a resident or non-resident importer, you will be required to register and use the CARM Client Portal (CCP) to manage your imports. Failure to register by the deadline could result in disruptions to your operations and require additional steps to maintain your release privileges. Therefore, early registration is highly recommended.
2. Key Dates and Actions for Importers
There are several important deadlines that importers need to keep in mind as CARM R3 is rolled out. Missing these dates could lead to interruptions in your importing capabilities or delays in shipments:
- October 4 (2 PM MST): Importers must be registered in the CARM Client Portal and have delegated their customs broker by this time to continue enjoying current release privileges. If you’re not registered by this date, additional steps will be required to process shipments.
- October 4 (2 PM MST) to October 21 (1 AM MST): The CARM Client Portal will be unavailable during this transition period, meaning you won’t be able to onboard or make updates in the system during this time. However, customs entries will still be processed, and registered users will maintain their existing privileges.
- October 21: CARM R3 officially launches. This marks the point when all Trade Chain Partners (TCPs) can resume operations in the portal, and the new customs duty management system will be fully implemented.
- October 31: Payment deadlines for GST and duty. Importers will need to monitor their CARM notifications and make any necessary payments to avoid penalties.
3. How Will CARM R3 Affect Your Import Operations?
The shift to CARM R3 will impact every importer, but the effects will be particularly important for those who are not prepared. Here’s what you need to know about how it will affect your operations:
- Customs Entries: Customs entries will still be processed during the cutover period (October 4 to October 21), but if you are not registered in the CARM system before October 4, additional steps will be required to register on October 21..
- Payments: Ramsay Customs & Logistics will continue to handle your GST and duty payments billed through our invoices. However, if you have outstanding payments on your CARM Statement of Account, you will need to make those payments directly via the CARM portal. Be sure to check with your Ramsay contact and your email notifications regularly to avoid missing any important payment deadlines.
- No Penalties or Interest (for 90 Days): The CBSA has announced that there will be no penalties for late payments for a 90-day period after the cutover, offering some relief as businesses adjust to the new system. However, keep in mind that unpaid accounts could still face CRA collections, so it’s essential to stay on top of your payments.
4. How to Register for CARM R3
If you haven’t already registered for CARM R3, now is the time to act. The process is straightforward, but it’s important to complete the steps as early as October 21 to avoid any disruptions. Here’s a simple guide to get you started:
- Step 1: Watch the CBSA’s video on how to create sign-in credentials and a user account in the CARM Client Portal.
- Step 2: Link your user account to your business account by following the instructions in this CBSA video.
- Step 3: If you work with a customs broker, make sure to delegate authority by watching the CBSA video on setting up delegation.
For full details, you can also consult the CBSA’s CARM User Guide.
5. Need Help? Contact Ramsay Customs & Logistics
Navigating the CARM R3 system may feel overwhelming, but you don’t have to do it alone. At Ramsay Customs & Logistics, we are here to help you every step of the way. Whether you need assistance with registration, understanding the new system, or simply have questions about how CARM R3 will affect your import operations, our team is ready to provide the support you need.
Contact us at [email protected] or call 587-353-1069 for personalized assistance.
CARM represents a significant change for Calgary importers, and being prepared is key to ensuring your operations continue smoothly. By registering early, staying informed, and working with a trusted partner like Ramsay Logistics, you can avoid disruptions and make a seamless transition to the new system.
Don’t wait until the last minute—register for CARM today and ensure you’re ready for the future of customs in Canada!