CBSA has announced that CARM Release 2 will be postponed until October 2024 for Canadian importers and other trade chain partners. However, CARM will still launch as scheduled on May 13 for internal CBSA employees. Read on to learn more.
In a news release published on April 19, the Canada Border Services Agency (CBSA) announced that CARM Release 2 will be postponed to October 2024 for Canadian importers and other trade chain partners. However, CARM will still launch as scheduled on May 13 for internal CBSA employees.
Triggered by the ongoing strike vote activity by the Public Service Alliance of Canada (PSAC) and the potential impact on agency operations, the decision to postpone CARM Release 2 aims to ensure adequate support for partners during the transition period. Until the fall, Canadian importers and other trade chain partners will continue their operations as usual.
This is the fourth delay for CARM Release 2. While Release 1 was rolled out in May 2021, the second release was originally scheduled for May 2022. However, it was pushed to May 2023, then again to October 2023, and then again to May 2024. It is now decided that the next suitable window for implementation is in October 2024, to guarantee that major IT changes are synchronized with other business mainframe systems.
While CARM is still planned for deployment, CBSA underscores the critical role of its employees in ensuring a successful implementation. Rescheduling the launch aligns with the agency's commitment to setting industry partners up for success.
Extensive preparations were made prior to the rollout of CARM, which included multiple consultation sessions, technical working groups, and testing cycles spanning 10 months. The industry has shown readiness, with approximately 71,500 Canadian importers already registered in CARM, representing over 92% of the volume of imported goods.
CARM is expected to provide $40 billion in annual revenues for Canadians while offering several other benefits for Canadian importers. These include:
The internal launch of CARM Release 2 in May marks a significant step towards improved compliance efforts. CARM aims to modernize duty and tax collection processes for imported goods. Through this program, CBSA will identify and rectify errors and discrepancies in duties and tax submissions, addressing concerns raised by the Auditor General of Canada regarding the misclassification of goods and resulting revenue loss.
PSAC, the union representing a significant portion of federal public servants, recently declared a nationwide strike mandate. According to the union, its members are prepared to initiate strike action pending the outcome of ongoing negotiations with the Liberal government.
The potential strike could impact various federal services, including those of the Canada Revenue Agency, the Canadian Transportation Agency, Global Affairs Canada, and Transport Canada. Departments and agencies are currently assessing which essential services will remain operational during a strike, while others may face disruptions.
To learn more about the program, visit our dedicated CARM page. You can also reach out to one of our trade professionals, who will be happy to clarify how this delay might affect your trade operations.