Important CARM Update for Customs Brokers and Importers

Share This:

On March 27th, the CBSA held a Trade Chain Partner Working Group meeting and announced the following changes related to CARM’s Release 2 (“R2”), coming May 13, 2024:

The minimum bond amount requirement will change from $25,000 to $5,000 for all importers with the implementation of R2.
- The maximum bond amount will remain capped at $10,000,000 per RM account.
- As a reminder, the bond amount will be calculated at 50% of the highest month of duties and taxes (including GST and all debts/accounts receivables) over the previous 12-month period.
CBSA cannot keep up with the paper bond filings (we have noticed a 6-8 week response time on bonds we submitted). Therefore, CBSA is encouraging the trade to wait to file any new bonds until the May 13, 2024 R2 date.
- Importers who have created their CARM Client Portal account before April 26, 2024, will be granted up to a 180-day grace period for obtaining and posting their financial security in CARM. Therefore, if a paper bond is in the process of filing, importers will have time to finalize their bond.
On March 21, 2024, the Standing Committee on International Trade (CIIT) held a meeting where it was encouraged to delay the release of R2 by several groups. However, CBSA appears to be pushing forward with the May 13^th release date. We encourage you to visit the CBSA website regularly for the latest updates and developments.

Roanoke’s FastBond™ will be ready for R2 to electronically file Release of Goods bonds in CARM! Stay tuned for FastBond™ updates coming soon.

To learn more, visit our Canada Customs Bond solution page or contact Glenn Patton, Managing Director – of Roanoke Insurance Group Canada, at glenn.patton@roanokegroup.com or call +1-800-ROANOKE.

Share This:

Managing Potential 2025 Tariffs: A Guide for Importers and Customs Brokers

By: Dennis Gates, Regional Vice President Northeast Region The announcement of potential tariffs has sparked concern across industries. In November 2024, the U.S. President-elect proposed a 25% tariff on imports from Canada and Mexico. This move could significantly disrupt trade, particularly for goods previously duty-free under the U.S.-Mexico-Canada Agreement (USMCA). For importers and their customhouse brokers, these tariffs could bring significant financial and logistical challenges. Understanding the Potential Impact These proposed tariffs may affect a wide array of goods, from raw materials to finished products. Importers need to understand how these changes could increase costs, strain supply chains, and lead […]

Customs Bonds

CARM Release 2 Update: Compliance Insights for Customs Brokers and Importers

CARM Release 2 Important Update for Customs Brokers and Importers On August 11, 2023, CBSA’s CARM Engagement team released an important update on the next phase of the CARM project launch. Per their email to trade and logistics partners: “In October 2023, the CARM Release 2 system will be available for selected industry partners who want to test their own internal systems, and for software service providers to continue to certify their software with CARM. The proposed regulatory amendments continue on schedule with a planned coming-into-force date of May 2024, when CARM becomes the official system of record. Further enhancements are […]

Customs Bonds

CARM & RPP: Essential FAQs for Canadian Importers

This FAQ is tailored for Canadian importers who need guidance on complying with the upcoming Release Prior to Payment (RPP) changes under the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) initiative. Frequently Asked Questions (FAQ) – Release Prior to Payment (RPP) Under CARM 1. What is the Release Prior to Payment (RPP) program? The RPP program allows importers to have their goods released by the Canada Border Services Agency (CBSA) before they pay duties and taxes. However, importers must now provide their own financial security to participate in RPP, as they can no longer rely on their […]

Canada

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Who We Serve

Resource Center

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173

CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Important CARM Update for Customs Brokers and Importers

Related

Solutions that Go the Distance.