March 29, 2021 | Industry Insights, Surety Bonds

Are You CARM Ready?

Share This:

What Is CARM?

CARM is a multi-year initiative implemented by Canada Border Services Agency  (CBSA). CARM stands for CBSA Assessment and Revenue Management and is intended to modernize and streamline the process of imports into Canada.

Under CARM, importers will need to secure and post their own import bond in order to participate in the Release Prior to Payment Privilege (RPP). This is a significant change that impacts importers and customs brokers. Prior to CARM, customs brokers were allowed to extend use of their own customs bond to any importer.

CARM Customs Bond Requirement Details

CARM Phase 0  went into effect in January of 2021. Release 1 is scheduled to launch Spring 2021 and Release 2 in the Spring of 2022.

As of Release 2, an importer must post security using one of the following two options to be eligible for RPP:

  • A surety bond for 50% of their highest monthly accounts receivable with a minimum bond of $25,000
  • – OR – a cash security for 100% of their highest monthly accounts receivable

The RPP Bond will allow the importer to:

    • Obtain the release of goods from the CBSA before paying duties and taxes
    • Defer accounting for goods
    • Defer payment of duties and taxes (including GST)

What Can You Do To Be CARM Ready?

Although CARM Release 2 is scheduled for Spring of 2022, customs brokers and their import clients should begin discussions now with their surety bond provider.

We recommend that brokers take the following steps now to prepare:

  • Confirm accurate information (importer address, business number)​
  • Review all importer clients to determine bond amount​
  • For bonds greater than $25,000 – underwriting may be required​ and should be sent to Roanoke or your surety partner for review​
  • Work out a schedule to ensure an orderly process to obtain bonds for your clients
  • Visit CBSA’s website to learn more about CARM. CBSA provides information specific to importers, customs brokers, trade consultants, surety companies and other trade partners in an effort to assist all parties in preparing for Release 1 and 2.

Roanoke and their surety partners are already working closely with CBSA on the business requirements they need to enhance their online customs bond issuance system FastBond™ for the upcoming bond changes. Once these negotiations are finalized, the digital platform will be updated to provide a convenient and fully compliant application for customs brokers.

While the bond is not required immediately, Canadian importers may choose to obtain it prior to Release 2. To speak to one our representatives about CARM Customs bonds for your clients, please provide us your contact information using the link below. Or, you can email  us at infospot@roanokegroup.com.

 

Sources: Canada Border Services Agency, PCB Customs Brokers

Share This:

Related


Fraud and Cyber Crime – Emerging Cargo Theft Trends

The ongoing global pandemic has triggered significant changes in the supply chain environment, and cargo thieves have deftly adapted their methods to this new reality. As a result, these resilient and opportunistic criminals pose a grave threat to supply chain security throughout the globe. The spread of the COVID-19 virus combined with disruptive measures enacted […]

Industry Insights

Roanoke Introduces New Client Experience Department!

Roanoke Insurance Group is excited to announce the formation of our Client Experience department. This new department will be led by Amanda Barlow, who has served our clients in a variety of capacities throughout her tenure at Roanoke. Most recently as the Regional Vice President of our Western region. Roanoke’s Kylie Reinert will join Amanda […]

Industry Insights

How Vulnerable is Your Company to an Attack by Cyber Criminals?

As featured in Forward Magazine At the AirCargo 2022 conference, a question was posed to the audience: Who has cyber insurance? Only 20% of the audience raised their hands! This is concerning because cyber-related crime is at an all-time high and still growing fast. The current data around cybercrime is alarming. By April of 2021, […]

Cyber Security, Industry Insights

Sign up for our latest articles and events.

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.

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

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc. A Munich Re company

Better Business Bureau logoCoverholder at Lloyd's logo