UPDATE: We have received news that the date for CARM Release 1 go-live is May 25, 2021, barring any unforeseen delays.
Release prior to payment program
One of the most important features of CARM is the financial security requirements for the Release Prior to Payment (RPP) program.
All importers (non-resident and resident) who wish to participate in the RPP program, under current guidelines, must provide financial security in the form of either a surety bond or a cash deposit.
Financial security needs to be in place for Release 2 (Spring 2022).
- Surety bonds can be secured through the CBSA’s list of approved surety providers
- Cash deposits can be made to CBSA
The key change once Release 2 goes live in 2022 is that importers will no longer be able to use their Custom brokers’ financial security to obtain customs release upon the arrival of inbound shipments. All importers will need to provide their own security.How much?
- The Surety Bond amount will be based on 50% of your highest single month’s accounts receivable to CBSA (inclusive of taxes and duties) for the previous 12-month period. The minimum bond amount is $25,000.
- Cash deposits will be set at 100% of your highest monthly accounts receivable to CBSA.
- If your accounts receivable with CBSA is at $0, no bond or deposit is required.
- CBSA has advised that single trip bonds will be available for exceptional shipments, but details have not yet been published.
Companies with multiple RM Import Accounts within their Business can acquire a single bond on their Business Number and apportion it out at the RM level, orthey can obtain separate bonds for each import entity. However, each individual RM level entity must have a $25,000 minimum bond.
Currently, the RPP financial security bond calculation does not include taxes (GST), but once CARM is fully released, the amount will be inclusive of GST. These requirements will take effect as of Release 2.What do importers need to do?
Once Release 1 is live in late May and before Release 2 go-live next spring, the key actions you must take are:
- Make sure you have a business number if you are a commercial importer. Verify with CRA and your customs broker that your entity and contact information is up to date.
- Determine who will be the Business Account Managers of your organization, and what other roles and visibility will be granted to others. Discuss this with your broker to ensure a smooth onboarding process with minimal disruptions to your services.
- Create your CARM portal user account and business account.
- Delegate authority and access to your CARM account to all appropriate third parties, such as your Customs broker.
- If you have further questions, Cole is here to help. Please do not hesitate to contact your local account manager or EMAIL US today.
- Require a customs bond? CLICK HERE to submit a request and one of our CARM representatives will contact you directly.
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