The Canada Border Services Agency (CBSA) is introducing significant changes to how duties and taxes are collected on goods entering Canada through the CBSA Assessment and Revenue Management (CARM) initiative.
This digital transformation aims to modernize and streamline processes, making them more efficient and less reliant on outdated paper-based systems.
CARM is set to launch internally for CBSA use on May 13, 2024, as part of the agency’s effort to enhance compliance and enforcement capabilities. However, current strike actions by the Public Service Alliance of Canada have delayed its broader rollout.
As a result, the full launch for trade chain partners, initially planned for the same timeframe, has now been rescheduled to October 2024.
“We're glad to hear small businesses will be given more time to register with CARM, given the learning curve with this new system. The increased compliance burden and complicated registration process are already deterring some businesses from scaling up or getting involved in international trade at all. The government agencies must ensure that businesses have enough time, help and resources to navigate the new system, so there are no supply chain impacts and delays at the borders,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.
According to NTEA, this phased implementation ensures the CBSA can adequately support its trade partners as they transition to the new system. The delay also aligns with scheduled IT updates, critical for integrating CARM with existing mainframes at the CBSA and Canada Revenue Agency.
Throughout the development of CARM, the CBSA has engaged with industry stakeholders extensively, conducting about 100 consultation sessions and over 160 direct engagement events.
The agency has also completed numerous testing cycles, including simulations involving CBSA employees and industry participants.
CARM promises several advantages for Canada’s import sector:
- Elimination of laborious paper-based processes, replacing them with more efficient digital procedures.
- Enhanced tools allowing CBSA to focus on high-risk compliance issues, targeting potential fraud and misclassification.
- Improved functionality for importers, including enrollment in commercial programs, document submission, and real-time notifications.
These improvements are expected to secure and grow about $40 billion annually in revenue for Canada, while also boosting compliance through better oversight and error detection in duty and tax submissions.