CBSA Announces Extended CARM Transition Measures

The extended transition period gives importers more time to adjust to the CARM requirements. However, they must act now to avoid any penalties or accrued interest.

The Canada Border Services Agency (CBSA) has extended its CARM transition measures by offering additional relief for importers as they adapt to the new CBSA Assessment and Revenue Management (CARM) system.

These updates, detailed in Customs Notice 25-02, outline key deadlines for penalty reinstatement and interest accrual.

To help importers adjust to CARM and its system requirements, CBSA had implemented a 90-day relief period from October 21, 2024, to January 19, 2025. During this period, no penalties or interest were applied for late accounting or payments.

The updated CARM transition measures further extend relief to businesses by offering an additional penalty-free period until March 31, 2025. Penalties and accrued interest will apply starting April 2025.

As per Customs Notice 25-02, importers must take note of the following measures and dates to ensure compliance and avoid penalties: 

Extension of penalty-free period

From January 20 to March 31, 2025, no penalties will be applied to late payments. This extension will give importers more time to resolve outstanding account management challenges and align with CARM requirements.

Penalty reinstatement

Starting April 1, 2025, penalties will apply to accounts with overdue balances from the March 2025 statement of account (SOA). This marks a return to standard enforcement and makes it critical for importers to settle their accounts right away.

Interest accrual

Interest on overdue amounts will begin accruing on April 4, 2025. These charges will first appear in the April 25, 2025, SOA. Importers must address any unpaid balances promptly to minimize financial liabilities.

Collection measures by the CRA

The Canada Revenue Agency (CRA) will initiate collection actions for unpaid accounts following their due dates. Importers with outstanding amounts will be subject to standard CRA collection protocols.

What you can do now to prepare

In preparation for the new April 2025 deadline, we recommend you do the following:

• Review your account statuses regularly through the CARM client portal (CCP) to identify and address outstanding balances.

• Allocate payments accurately to ensure funds are applied to the correct transactions, which will help reduce errors that may result in penalties.

• Speak to your customs broker to stay informed on compliance expectations and processes.

Please reach out to one of our trade professionals to discuss how to navigate this extended transition period and avoid any future penalties.