Changes to Customs Bonds under CARM

Date posted: February 26, 2020 | Author: Chad Swance, Director of Regulatory Affairs and Trade Compliance


The CBSA's Assessment and Revenue Management (CARM) Project is a large, multi-year project that will transform CBSA’s revenue management by automating manual processes required to assess, collect, manage and report on revenue and trade information.

The project will replace aging and non-integrated revenue and cash management systems. CARM will also change the way the commercial trade community interacts electronically with CBSA. All commercial importers will be impacted by these changes.

Bond Changes

CARM implementation will bring a foundational shift in the way CBSA collects revenue and secures outstanding liabilities.
Upon implementation, CARM will move from broker based security to importer based security. This will mean that all
importers will be required to obtain a bond. Bonds are meant to cover the liabilities of the importer in the event of
insolvency.

Importers will be responsible to actively monitor their bonds to ensure their outstanding liabilities do not extend beyond
the bond cap. Should importers exceed the cap, they can either increase their bond or make an immediate payment to
bring down their outstanding liabilities with the CBSA. Importers will be able to monitor all outstanding liabilities
through the online CARM portal.

The CBSA has published various proposals for the calculation of bond amounts. All proposals published have included
GST and duty in the total calculation for businesses based in Canada. As the final bond calculation mechanism is published, KN will update clients.

Kuehne + Nagel will continue to update customers as CARM implementation draws closer. Should there be further
questions regarding CARM, please reach out to Chad Swance, KN’s Director of Regulatory of Affairs and Trade Compliance.