Global trade has become one of the focal points of economies, and efficient customs processes are paramount to this. Canada, recognising this need, has embarked on a transformative journey with its Customs Assessment and Revenue Management (CARM) project which will become the official system of record for imposing or levying of duties and taxes from May 13th 2024 . Led by the Canada Border Services Agency (CBSA), CARM aims to modernise and streamline customs processes, enabling trade to be more efficient and secure.
Understanding CARM:
CARM represents a significant shift in how Canada is able to manage their customs processes. At its core, it introduces a new, state-of-the-art system that digitalises and automates multiple elements of customs clearance. From declarations to payments, CARM aims to simplify procedures, whilst enhancing compliance and security measures.
Key Components of CARM:
- Single Window Initiative
- Assessment and Revenue Management (ARM)
- Client Portal
Benefits of CARM Implementation:
- Efficiency
- Compliance
- Transparency
The implementation of CARM is forecast to have a significant impact on customers engaged in international trade. One of the most immediate effects customers will experience, is the streamlining of customs clearance processes. With CARM’s digitalisation and automation capabilities, the paperwork and manual tasks associated with customs declaration and payments will be greatly reduced with the introduction of a single electronic portal for data submission under the Single Window Initiative.
The portal will simplify the process for customers, allowing them to submit all necessary information in one place, increasing clearance times for their shipments and minimising the risk of errors and delays, and so improving supply chain efficiency.
Customers shipping to Canada under DDP terms will be required to register on the portal, as well as obtaining Customs bonds, which will cover duties and taxes. As well as this, customers will need to set up a Canadian bank account in order to remit the payment owing to Customs.
It is recommended in the interim period, customers consider shipping on DAP terms – enabling the responsibility for clearance, duties and taxes to rest with the Canadian Importer.
Using the new CARM’s online portal will provide real-time visibility into the status of shipments, allowing customers to benefit from increased transparency and predictability with regards to trade transactions.
The improved compliance measures and risk assessment tools integrated into CARM will help to ensure the security of trade transactions, and customers can feel confident and trust that their shipments are subject to rigorous checks and verifications.
Canada’s CARM implementation offers the opportunity to delve into a new world of efficiency, transparency and compliance in customs clearance. Here at Denholm Good Logistics, we have a deep understanding of the changes and are ready to provide information to our customers ahead of time, so customers are prepared by the time CARM is fully implemented. If you have any questions about this process, or need assistance, please contact us today.
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