CARM, which stands for CBSA Assessment and Revenue Management, is a modernized system implemented by the Canada Border Services Agency (CBSA) to manage the assessment and processing of imported goods. In simple terms, it's a system that helps streamline how imports are assessed, helping collect duties, taxes, and ensuring compliance with regulations.
For importers to comply with CARM and avoid shipment delays or penalties, several steps are crucial:
1. **Registering and Getting a Business Number:** Importers need to have a Business Number (BN) to sign up for CARM. This number is obtained through the Canada Revenue Agency (CRA).
2. **Enrolling in CARM:** Once an importer has their BN, they need to enroll in CARM through the CBSA website or the CARM Client Portal.
3. **Applying for a Bond:** Importers might need a surety bond. This ensures that duties and taxes will be paid to the government. They can obtain a bond through an insurance or surety company.
4. **Compliance and Accurate Reporting:** Accurate and complete reporting of imported goods is crucial. Importers should ensure they provide all necessary information, adhere to regulations, and pay the correct duties and taxes.
Failure to comply with CARM or import regulations can result in penalties. Penalties may include fines, delayed clearance of shipments, or even seizure of goods. The severity of penalties can vary depending on the violation and its impact.
Canadian importers are required to accurately report imported goods, pay duties and taxes, and comply with regulations outlined by CBSA. They need to enroll in CARM to interact with the system.
Importers can sign up for CARM and manage their account through the CBSA website or the CARM Client Portal.
The role of a Customs Broker in the CARM system involves acting as an intermediary between the importer and the government, helping with the complexities of customs procedures. Customs Brokers assist importers in ensuring compliance with regulations, submitting the required documentation, and navigating the CARM system efficiently. They can help in the proper classification of goods, ensuring accurate valuation, and adherence to various rules and regulations, ultimately facilitating smooth and lawful importation processes.
In summary, CARM is a system designed to streamline and modernize the import process. Importers must enroll in CARM, ensure accurate reporting, pay duties and taxes, and comply with regulations to avoid delays and penalties. Using a Customs Broker can greatly assist importers in navigating this system effectively and ensuring compliance with import regulations.