CARM Release 2 in Canada: Are you ready?

CARM is transforming duty and tax collection for goods imported into Canada. Importers must create a CARM Client Portal account to sustain operations post-Release 2. Confused about this new rule? We’ve got you covered with all the essential information to prepare you before October 2023! 

What is CARM?

The Assessment and Revenue Management (CARM) project is a multi-year initiative aimed at transforming the collection of duties and taxes for goods imported into Canada. This shift involves moving from a manual system to the CARM Client Portal (CCP), which is being implemented in multiple phases, with the objective of modernizing and streamlining the importation process for commercial goods. 

During the first release in 2021, the CARM Client Portal was introduced, allowing importers to become familiar with its functionalities. However, starting from October 2023, the CARM Client Portal will become mandatory, and additional features will be incorporated to enhance its capabilities. 

How does CARM Release 2 affect me?

From October 2023, every company that imports goods into Canada must be registered on the online CCP to continue their operations. This will affect everyone involved in trading with Canada, including sellers, carriers, and customs brokers. 

Importers must make customs, duty, and tax payments through their account on the CARM Client Portal. Sellers also have three options: they can either delegate brokerage responsibility to their carrier, grant access to their customs broker, or directly manage and clear their shipments using the CCP.    

What should I do to get ready?

Although CARM Release 2 is scheduled for October 2023, the online CCP is already accessible for registering your company and utilizing its key functionalities. Therefore, it is highly recommended to prepare now, allowing you to become familiar and settled by October 2023.  

To set up their CARM Client Portal account, importers should create their portal Business Account and designate a Business Account Manager. He will handle day-to-day tasks such as assigning privileges and approving delegation of authority requests. Importers can then delegate authority to their employees, customs broker, or trade consultant. More information on the different steps can be found here.  

What are the key functions of the CARM Client Portal?

With the CARM Release 1 that took place in May 2021, users can already: 

• Classify goods and estimate duties and taxes 
• Make secure online payments via the portal 
• Delegate access to their service providers 
• Submit rulings requests and track their progress 

Key features of Release 2 will include: 

• Changes to the Release Prior to Payment program: importers will have to post their own financial security for the Release Prior to Payment program. Learn more here. 
• A new way to account for imported goods: a new digital Commercial Accounting Declaration (CAD) to account for imported goods will replace the current forms. Learn more here. 
• New harmonized billing cycles: billing cycles will align payment due dates for importers. Check the affected billing cycles here. 

Key takeaways

In conclusion, CARM Release 2 is bringing a revolutionary change to duty and tax collection for goods imported into Canada. To avoid border delays and stuck goods, importers must act now by setting up their CARM Client Portal account.  

Yet, while setting up your account is a start, it won’t shield you from disruptions after October 2023. Importers must accurately calculate duty and tax amounts and ensure precise submissions to customs. The complexity of these calculations often leads to errors due to a variety of factors. 

This is why opting for Eurora’s Duty & Tax Calculation, an automated solution, is a more reliable choice. It eases your transition to the CARM system by covering VAT, Duty rates, de minimis thresholds, and active free trade agreements for various global jurisdictions. Plus, it stays updated with regulatory changes for your peace of mind.