On October 21, 2024, the CBSA Assessment and Revenue Management (CARM) became the official system for importers to account for their goods and pay applicable duties and taxes owed to the Canada Border Services Agency (CBSA).
To facilitate the transition to CARM, the CBSA implemented a 90-day grace period, beginning on October 21, 2024 and ending on January 19, 2025. During this time, importers were not assessed late accounting penalties, late payment penalties, and late payment interest on transactions involving shipments that were released but not accounted for. The CBSA has announced it will not extend the grace period for late accounting penalties.
The CBSA has resumed the standard process of applying late accounting penalties to outstanding transactions in rejected status. They are doing so on a case-by-case basis.
In a recent update, the CBSA stated:
Transition measures as described in item 34 of the Customs Notice 24-29: Preparing for the CARM October Implementation – Cutover Period provided a period of 90 calendar days post October 21, 2024 whereby the Agency provided relief and did not issue late accounting penalties, late payment penalties and late payment interest related to the CARM-implementation. Please note that these transition measures will end on January 19, 2025. Goods that have been imported into Canada are expected to be accounted for within the prescribed timeframes. As such, late accounting penalties may be issued as of January 20, 2025.
Transactions rejected due to missing delegation of authority or non-compliance with CARM Client Portal registration requirement
Importers that have transactions in a ‘reject’ status because their business is not registered in the CARM Client Portal or they have not accepted their customs broker’s Delegation of Authority request, could be assessed late accounting penalties by the CBSA.
For help with the CARM Client Portal registration, refer to CBSA’s user guide: Onboarding to the CARM Client Portal.
Importers that are already registered on the Portal but have not delegated authority to their customs broker should do so immediately. For help, refer to CBSA’s user guide: Delegation of Authority in the CARM Client Portal.
Transactions rejected due to pending resolution by the CBSA
Importers that have transactions in a ‘reject’ status because they’re waiting for CBSA to address an issue, and are charged late accounting penalties as a result, can submit an appeal via the online appeal process.
With CARM, shipments are released under the importer’s BN15, and therefore it is the importer’s responsibility and liability to ensure the accounting is completed and paid within CBSA’s deadlines. To keep your account in good standing with the CBSA, ensure you address any issues pertaining to transactions in reject status and incomplete accounting.