CARM Update: Canadian Importers Required to Post Financial Security Before April 19
Importers should ensure they are fully registered in the CARM system, comply with financial security requirements, and review their accounts in the CCP to avoid delays, penalties, or interest.
With the CBSA Assessment and Revenue Management (CARM) transition period coming to an end on April 19, 2025, Canadian importers are advised to post their own financial security in the CARM system before the deadline.
After this date, importers who have not posted financial security will no longer be able to use the Release Prior to Payment (RPP) program, which allows goods to be released before duties and taxes are paid.
Instead, they will need to pay duties and taxes upfront. This may result in longer processing times, as shipments that do not qualify for electronic release under the RPP program require manual processing.
Commercial importers can no longer use the financial security posted by their customs broker as per the new CARM financial security model.
Beginning April 1, 2025, relief on accrued interest will also no longer be applicable, and the CBSA will start applying penalties and interest to outstanding balances.
CBSA had initially introduced a 90-day relief period from October 21, 2024, to January 19, 2025, to give businesses more time to adapt to CARM’s new financial security model and avoid border disruptions.
During this period, no penalties or interest were applied for late accounting or payments.
This relief period has since been extended until March 31, 2025.
If you have not yet submitted financial security, please complete the following steps as soon as possible to continue using the RPP program:
You can provide security through a surety bond from a recognized financial institution or submit an electronic cash deposit.
The required security amount is based on your business’s highest monthly accounts receivable, including GST, over the past 12 months. If you don’t have a 12-month history of account balances, you can make an estimate.
At Cole International, we provide customs and compliance consulting and customs brokerage services to help importers navigate changing regulations and simplify their import processes.
We also offer guidance on all CARM-related issues to ensure your business is compliant and ready for the full transition to the CARM system.
Please reach out to one of our trade professionals to discuss your financial security options and ensure your business is ready for CARM.