CARM | Duty and Tax Liability and Payment Under CARMMany Canadian importers have questions about the financial changes coming over the next year, and King Bros is here to help.
Two of the biggest changes that will be ushered in by CARM Release 2 in Spring 2022 will be the mandatory use of the CARM Client Portal (CCP), and the transferring of financial liability from customs brokers to importers.
Currently, many importers use broker-backed security. This means that the importer employs a customs broker who has posted a surety bond with CBSA. With the broker’s bond as security, CBSA can release the importer’s goods into Canada before the duties and taxes due on the import have been paid. These importers enjoy Release Prior to Payment Privileges (RPP). After CARM Release 2, importers will need to post their own financial security. Customs will no longer accept a broker’s bond as security for the importer’s duties and taxes.
This means that importers will be directly liable for any unpaid duties and taxes. It also means that as an importer, if you would like to continue to make use of RPP privileges, you will need to obtain a surety bond. More information about surety bonds is available here.
If you are a client of King Bros, our trade professionals can assist by obtaining a bond on your behalf. We can also assist you with setting up your CARM Client Portal and managing your accounting activity through the portal.
Can I Delegate Access And Management To King Bros. Ltd?
Absolutely. The CARM Client Portal allows for third party delegation of account, where importers can choose to provide access to King Bros Ltd., so that we can view your information and manage payments on your behalf through our CARM payment services. If you would prefer to continue having a broker manage your customs accounting, including your surety bond, that will still be possible.
Need help understanding the CBSA Assessment and Revenue Management (CARM) Client Portal, the requirement to purchase your own release prior to payment of security bond, and payment of your monthly statement? We’re here to answer your questions!
By Robin Smith, M.A., CCS
– Robin is a trade industry professional based in Victoria, BC.
Many Canadian importers have questions about the financial changes coming over the next year, and King Bros is here to help.
Two of the biggest changes that will be ushered in by CARM Release 2 in Spring 2022 will be the mandatory use of the CARM Client Portal (CCP), and the transferring of financial liability from customs brokers to importers.
Currently, many importers use broker-backed security. This means that the importer employs a customs broker who has posted a surety bond with CBSA. With the broker’s bond as security, CBSA can release the importer’s goods into Canada before the duties and taxes due on the import have been paid. These importers enjoy Release Prior to Payment Privileges (RPP). After CARM Release 2, importers will need to post their own financial security. Customs will no longer accept a broker’s bond as security for the importer’s duties and taxes.
This means that importers will be directly liable for any unpaid duties and taxes. It also means that as an importer, if you would like to continue to make use of RPP privileges, you will need to obtain a surety bond. More information about surety bonds is available here.
If you are a client of King Bros, our trade professionals can assist by obtaining a bond on your behalf. We can also assist you with setting up your CARM Client Portal and managing your accounting activity through the portal.
Can I Delegate Access And Management To King Bros. Ltd?
Absolutely. The CARM Client Portal allows for third party delegation of account, where importers can choose to provide access to King Bros Ltd., so that we can view your information and manage payments on your behalf through our CARM payment services. If you would prefer to continue having a broker manage your customs accounting, including your surety bond, that will still be possible.
Need help understanding the CBSA Assessment and Revenue Management (CARM) Client Portal, the requirement to purchase your own release prior to payment of security bond, and payment of your monthly statement? We’re here to answer your questions!
By Robin Smith, M.A., CCS
– Robin is a trade industry professional based in Victoria, BC.
