Importers will be aware of a major transition in custom administration, soon to be implemented by CBSA. CARM is a long-standing initiative to update the processing and payment of duties and taxes on imported goods. The project has been plagued by innumerable delays, uneven communication with industry and concerns about the viability of the program. The Canadian government has indicated that it is moving forward with this program, effective May 13, 2024.
On March 13, 2024 the government published a large set of regulatory changes related to CARM. It also includes a summary of the measures (called the REGULATORY IMPACT ANALYSIS STATEMENT) and extensive details on the process to date. That being said, there remains considerable concern that the system is simply not ready.
The House of Commons Standing Committee on International Trade is scheduling hearings on March 19 and 21, 2024 on CARM implementation, in part because many in the trade community have argued that the system is simply not ready. One submission to the committee asserts the following: “What we’ve learned is that the registration process itself and new requirements for businesses to obtain financial security to import goods is too difficult and complex, especially for small businesses…..Proceeding as planned [with full CARM implementation] planned without addressing mission-critical issues will result in delays at the border, abandoned shipments, warehousing capacity constraints, increased costs to importers and industry, and ultimately a reduction of goods being imported to Canada. “
Anyone importer unfamiliar with CARM should consult the CBSA CARM portal. Companies should also work closely with their custom brokers/forwarders as the implementation date approaches. Please note that CARM is scheduled to be implemented in full on May 13, 2024. CAF members with questions about this policy should contact Bob Kirke, bkirke@apparel.ca.