March 29, 2024 | Canada, Customs Bonds
Important CARM Update for Customs Brokers and Importers
On March 27th, the CBSA held a Trade Chain Partner Working Group meeting and announced the following changes related to CARM’s Release 2 (“R2”), coming May 13, 2024:
- The minimum bond amount requirement will change from $25,000 to $5,000 for all importers with the implementation of R2.
- The maximum bond amount will remain capped at $10,000,000 per RM account.
- As a reminder, the bond amount will be calculated at 50% of the highest month of duties and taxes (including GST and all debts/accounts receivables) over the previous 12-month period.
- CBSA cannot keep up with the paper bond filings (we have noticed a 6-8 week response time on bonds we submitted). Therefore, CBSA is encouraging the trade to wait to file any new bonds until the May 13, 2024 R2 date.
- Importers who have created their CARM Client Portal account before April 26, 2024, will be granted up to a 180-day grace period for obtaining and posting their financial security in CARM. Therefore, if a paper bond is in the process of filing, importers will have time to finalize their bond.
- On March 21, 2024, the Standing Committee on International Trade (CIIT) held a meeting where it was encouraged to delay the release of R2 by several groups. However, CBSA appears to be pushing forward with the May 13th release date. We encourage you to visit the CBSA website regularly for the latest updates and developments.
Roanoke’s FastBond™ will be ready for R2 to electronically file Release of Goods bonds in CARM! Stay tuned for FastBond™ updates coming soon.
To learn more, visit our Canada Customs Bond solution page or contact Glenn Patton, Managing Director – of Roanoke Insurance Group Canada, at glenn.patton@roanokegroup.com or call +1-800-ROANOKE.
Solutions that Go the Distance.
© 2024 Roanoke Insurance Group Inc.
