August 15, 2023 | Customs Bonds | Jason Palumbo

CARM Release 2 Update: Compliance Insights for Customs Brokers and Importers

Share This:

CARM Release 2 Important Update for Customs Brokers and Importers

On August 11, 2023, CBSA’s CARM Engagement team released an important update on the next phase of the CARM project launch. Per their email to trade and logistics partners:

“In October 2023, the CARM Release 2 system will be available for selected industry partners who want to test their own internal systems, and for software service providers to continue to certify their software with CARM.

The proposed regulatory amendments continue on schedule with a planned coming-into-force date of May 2024, when CARM becomes the official system of record. Further enhancements are expected to become available in fall 2024. A forum will be established with key stakeholders to discuss implementation of this phased approach and application of regulations in support of CARM.

All commercial businesses who import goods into Canada need to register to the CARM Client Portal (CCP) before May 2024 to minimize border delays and benefit from the Release Prior to Payment (RPP) transition period.

Specifically, all importers who onboard the CCP prior to the coming-into-force date in May 2024 will be assigned RPP qualifying status for a 180-day transition period allowing them to adapt to this new model, while ensuring that border disruptions are mitigated. Commercial importers will still be able to obtain release prior to payment of duties and taxes during the transition period as they proceed to meet the requirement for financial security.

The CBSA is aware of the significant investment that CARM represents for industry and for the Government of Canada as a whole. Accordingly, we also wanted to take this opportunity to inform you that our intent is to publicly announce this latest CARM update via news release this week. At the same time, we will be posting more information on our website, which we encourage you to check out once available.”

Don’t Get Caught Waiting for Your Bond

As this most recent CARM announcement reinforces, the new regulations are slated to come into force in May 2024. Now is the time to prepare for R2 (CARM Release 2). In R2, the importer will be required to post its own financial security to participate in the Release Prior to Payment Program and will no longer be able to utilize their customs broker’s bond to cover their entries. As all importers will secure their own surety bond to comply with the financial security requirement, we encourage importers to communicate with their customs brokers and make a definitive plan for when and how to obtain their own bond.

Based on the current number of bond providers, the relatively early stage of technology development around this process, and the large number of bonds that will be required to be in force at R2 launch, there is potential for significant delay in issuance. Importers are advised not to wait until the last minute to secure their bonds.

Roanoke’s customs bond and technology experts are actively working with our customers to help make the enforcement launch of R2 as smooth as possible. We have developed our FastBond™ system to include a Canada portal for easy bond issuance. Our customers are already issuing D120 Canada customs bonds in the FastBondTM system, and they are praising the system’s clean navigation and the ease of bond issuance.

For more details on CARM and the RPP process read our article Are You CARM Ready?. To learn more, visit our Customs Bond solution page or reach out to Glenn Patton, Managing Director – Roanoke Insurance Group Canada.

 

 

Share This:

Related


CARM Release 2 Update: Compliance Insights for Customs Brokers and Importers

CARM Release 2 Important Update for Customs Brokers and Importers On August 11, 2023, CBSA’s CARM Engagement team released an important update on the next phase of the CARM project launch. Per their email to trade and logistics partners: “In October 2023, the CARM Release 2 system will be available for selected industry partners who […]

Customs Bonds

4 Ways to Evaluate a Customs Bond Provider: An Important Guide for Customs Brokers

An import bond is more than a simple commodity. Choosing the right customs surety bond provider can add stability and certainty to your business as well as the flow of your import clients’ goods. Properly vetting your customs bond provider and the surety company they represent will help you deliver on your client’s service expectations. […]

Customs Bonds

Roanoke Whitepaper – An Importer’s Guide to Antidumping & Countervailing Duties

Many Customs and trade laws carry significant financial consequences for importers, and of these laws, antidumping and countervailing duties pose some of the most dangerous ramifications. These provisions exist to protect domestic industries and producers from unfair foreign competition. Under U.S. law, goods are subject to assessment of “ordinary duties” based on their classification under […]

Customs Bonds

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