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:

Regulatory Defense: Your Strategic Advantage Against Enforcement Actions

By: Lenny Feldman, Managing Partner at Sandler, Travis & Rosenberg, P.A. With the government’s continued emphasis on enforcement, it has become mission-critical for parties engaged in international trade to set their strategic offensive in place through programs such as “regulatory defense. “The administration continues to issue executive actions and regulations that increase trade enforcement by stepping up the collection of section 301, 232, and 201 tariffs as well as antidumping and countervailing duties and the prosecution of trade and customs laws violations, particularly in the de minimis space. Additionally, federal agencies have issued regulations and decisions underscoring the need for […]

Customs Bonds

Striking the Balance: Managing Tariffs and Bond Stacking Liability

By Matt Zehner, VP, Surety Information & Analysis, Roanoke Insurance Group Inc. Recently, my colleague Colleen introduced Tariffs and Bond Stacking Liability and the need for importers to monitor bond sufficiency on a regular basis, with the goal to avoid a short-notice demand from CBP to terminate and file a larger bond. One significant reason to planning the timing of when to make use of a larger continuous bond is that by reducing the number of times the bond amount changes over time, the bond principal is able to minimize the accumulation of bond liability. There are ancillary benefits to importers when […]

Customs Bonds

Critical CBSA Updates Ahead of CARM R3 and Recommended Next Steps

As the Canada Border Services Agency (CBSA) prepares for the upcoming CARM Release 3 (R3) on October 21, 2024, two important notices have been issued to guide businesses through this transition. These notices outline key measures and processes impacting trade operations and compliance. Customs Notice 24-27- Transition Measures for CARM R3 Customs Notice 24-27 details the transition measures that will be implemented with CARM R3. These measures are designed to ensure continued border fluidity and the timely submission of accounting information and payment of duties and taxes. Importers should take note of the Release to Prior Payment (RPP) financial security […]

Canada, Customs Bonds

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.