CARM Update…In May 2021, CARM Release 1 went live and it was announced that Release 2 was scheduled for May 2022. Importers were advised that they had one year to change over to the CARM system fully, and customs brokers began preparing to help their clients transition and secure surety bonds. Seminars were held, blogs were written, and the industry braced itself for a change.
And then…a pause
In an April 2022 webinar for customs brokers, it was hinted that CARM was about to be delayed. This didn’t come as a complete surprise, as it was already becoming clear that the system was not yet fully operational.
On May 25, CBSA Executive Vice President Ted Gallivan gave a statement: “The CBSA plans to present a revised project plan to the Treasury Board that shows the go-live date [for CARM R2] as being one of two dates in 2023, either May 2023 or October 2023, in order to lock down the related regulations, rules of engagement, and to be sure that onboarding is complete.”
How much can I prepare in advance for CARM?
The CARM Client Portal is up and running. It’s a good idea to get your portal account set up, create accounts for each user, and delegate authority to your third parties (instructions are available here). Users have lots of time to familiarize themselves with the portal, but there is also a risk that people will forget how to use the interface by the time that CARM debuts.
Unfortunately, surety bonds cannot be secured more than a year in advance. Although commercial importers will eventually be required to provided bonded security for their imports, if you are planning to use a surety bond for your security you should not begin the application process until there is a very firm date for the launch of CARM 2. Unfortunately, as there are many thousands of Canadian importers who will need bonds and only a limited number of surety companies, there is likely to be a last-minute rush. Importers will need to balance the need to apply for their bonds early enough to beat the rush with the need to wait until the launch date for CARM is certain not to be pushed back.
More information about account security and surety bonds is available here.
Why the delays?
Launching CARM is a huge undertaking. CBSA is working closely with numerous industry stakeholders and government agencies to change the way importing business is done in Canada. A number of unforeseen challenges that have contributed to pushing the launch timeline back. The financial changes, in particular, seem to be causing difficulty. As with any massive project that has never been tried before, unexpected issues have to be addressed as they crop up.
Are there going to be more delays?
No one knows at this point, but given the scope of the project and the number of challenges that have already been encountered, more delays are not unlikely.
What should I do for now?
For now, importers should keep in contact with their customs brokers and wait for more information to become available. Don’t worry – everyone is in the same boat! The CBSA doesn’t want to cause problems for importers if they can possibly avoid it. The Canadian Society of Customs Brokers (CSCB) is working closely with CBSA and advocating for the interests of brokers and importers. A good customs broker will keep you in the loop and give you lots of notice for any action you need to take – and if you don’t have a good customs broker yet, may we suggest?
By Robin Smith, M.A., CCS
– Robin is a trade industry professional based in Victoria, BC.
In May 2021, CARM Release 1 went live and it was announced that Release 2 was scheduled for May 2022. Importers were advised that they had one year to change over to the CARM system fully, and customs brokers began preparing to help their clients transition and secure surety bonds. Seminars were held, blogs were written, and the industry braced itself for a change.
And then…a pause
In an April 2022 webinar for customs brokers, it was hinted that CARM was about to be delayed. This didn’t come as a complete surprise, as it was already becoming clear that the system was not yet fully operational.
On May 25, CBSA Executive Vice President Ted Gallivan gave a statement: “The CBSA plans to present a revised project plan to the Treasury Board that shows the go-live date [for CARM R2] as being one of two dates in 2023, either May 2023 or October 2023, in order to lock down the related regulations, rules of engagement, and to be sure that onboarding is complete.”
How much can I prepare in advance for CARM?
The CARM Client Portal is up and running. It’s a good idea to get your portal account set up, create accounts for each user, and delegate authority to your third parties (instructions are available here). Users have lots of time to familiarize themselves with the portal, but there is also a risk that people will forget how to use the interface by the time that CARM debuts.
Unfortunately, surety bonds cannot be secured more than a year in advance. Although commercial importers will eventually be required to provided bonded security for their imports, if you are planning to use a surety bond for your security you should not begin the application process until there is a very firm date for the launch of CARM 2. Unfortunately, as there are many thousands of Canadian importers who will need bonds and only a limited number of surety companies, there is likely to be a last-minute rush. Importers will need to balance the need to apply for their bonds early enough to beat the rush with the need to wait until the launch date for CARM is certain not to be pushed back.
More information about account security and surety bonds is available here.
Why the delays?
Launching CARM is a huge undertaking. CBSA is working closely with numerous industry stakeholders and government agencies to change the way importing business is done in Canada. A number of unforeseen challenges that have contributed to pushing the launch timeline back. The financial changes, in particular, seem to be causing difficulty. As with any massive project that has never been tried before, unexpected issues have to be addressed as they crop up.
Are there going to be more delays?
No one knows at this point, but given the scope of the project and the number of challenges that have already been encountered, more delays are not unlikely.
What should I do for now?
For now, importers should keep in contact with their customs brokers and wait for more information to become available. Don’t worry – everyone is in the same boat! The CBSA doesn’t want to cause problems for importers if they can possibly avoid it. The Canadian Society of Customs Brokers (CSCB) is working closely with CBSA and advocating for the interests of brokers and importers. A good customs broker will keep you in the loop and give you lots of notice for any action you need to take – and if you don’t have a good customs broker yet, may we suggest?
By Robin Smith, M.A., CCS
– Robin is a trade industry professional based in Victoria, BC.
