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Canada's New Customs Payment System Faces Low Adoption at Launch

As CARM rules take effect, only 30% of importers have enrolled, raising concerns over financial and logistical challenges.

Containers are unloaded at the Port of Montreal in Montreal on July 20, 2017. THE CANADIAN PRESS/Ryan Remiorz

Overview

  • The Canada Border Services Agency (CBSA) launched the CARM portal, requiring importers to provide upfront security deposits or surety bonds for goods based on peak monthly volumes.
  • Only 30% of Canada's 197,000 active importers have registered for the 'release prior to payment' component, sparking concerns about compliance readiness.
  • Importers and industry representatives warn the new system could strain cash flows, disrupt supply chains, and increase costs for businesses and consumers.
  • CBSA asserts that CARM will improve cross-border transport by enhancing data access, streamlining customs processes, and securing government revenue even in cases of non-payment or bankruptcy.
  • Critics, including Winnipeg-based customs broker Alan Dewar, argue the system complicates the import process and imposes unnecessary financial burdens on businesses.