CBSA phasing in CARM: launching internally for CBSA use as planned in May and later in the fall for trade chain partners

April 19, 2024

Ottawa, Ontario – Today, the Canada Border Services Agency (CBSA) provided an update on its plans for the launch of the CBSA Assessment and Revenue Management (CARM) digital initiative, which will modernize the collection of duties and taxes for goods imported into Canada. 

CARM will launch internally at the CBSA on May 13, as planned, to advance the Agency’s compliance and enforcement efforts. However, as a result of strike vote activity now underway by the Public Service Alliance of Canada and the possible impact on the Agency’s operations in the event of a positive strike vote, it is the intention of the CBSA to reschedule the launch for trade chain partners to October 2024. This will ensure that the Agency can support partners as they start using CARM. Therefore, until the fall, trade chain partners will continue to operate as they have.

CARM is ready to roll out. However, the support of CBSA employees is critical to the successful implementation of CARM. By rescheduling its launch, the Agency is setting industry partners up for success. Given the links between CARM and other business mainframe systems in the CBSA and Canada Revenue Agency, the next scheduled window to migrate major IT changes is October 2024.

The CBSA held approximately 100 consultation and technical working group sessions, over 160 direct engagement events, and has completed multiple cycles of testing, including over 10 months of simulation with direct participation by CBSA employees and industry. Industry has worked to be ready with approximately 71,500 importers now registered in CARM – these importers represent over 92 percent of the volume of goods imported.

In addition to protecting and growing $40 billion a year in revenue for Canadians, CARM will provide a number of other benefits:

• Eliminate cumbersome and time-consuming paper-based processes
• Provide better tools that will allow the CBSA to focus its compliance and enforcement efforts on potential bad actors
• Improve functionality for importers through the ability to enroll in commercial programs, submit accounting documents, and receive notifications through their CARM Client Portal account

The internal launch of CARM at the CBSA, starting on May 13, will allow the Agency to advance work towards the expected benefit of better compliance. The CBSA will use CARM to identify errors and discrepancies in duties and tax submissions, and begin to work with industry in these areas. These efforts respond to a study by the Auditor General of Canada, who had estimated that as many as 20% of goods coming into Canada were misclassified, resulting in a lesser amount of duty paid.