The Canadian Federation of Independent Business has urged government and border agencies to be lenient with small importers as the Canada Border Services Agency’s new Assessment and Revenue Management System (CARM) is implemented.
The CBSA has required Canadian importers to register in the system before May 20 so their goods can be cleared at customs without paying duties and taxes on arrival. Under the CARM system, importers must post financial security in cash or bond to participate in the Release Prior to Payment program; otherwise, they must physically appear at the border to pay duties and taxes.
The CFIB revealed that 45 percent of importers have yet to enrol in the program, with 18 percent uncertain as to whether they must.
Recent Articles
“We’re already seeing disruptions to supply chains and cross-border trade. Now is not the time to push for these changes. Currently, there are only two options to meet the RPP requirements, and none of them are appealing for a small business operating on a tight budget,” said Corinne Pohlmann, CFIB’s executive vice-president of advocacy, in a statement. “Smaller importers, especially those importing only once or twice a year, would rather have an option of paying with a credit card on file than provide a cash deposit or buy a yearly security bond.”
The federation noted that before this change, customs brokers generally handled the process for importers as part of their service offering. In a letter, the CFIB asked the government to exempt small importers from the RPP program’s current financial security requirements or permit them to use credit cards.
The federation also called for government and border agencies to prioritize education over penalties in the initial phase of CARM implementation.
“It’s going to be chaos at the borders. For small importers, it’s burdensome having to go through the registration process and post financial security on top of dealing with tariff pressures. They already have so much on their plate, that going ahead with the new rules would just seem tone deaf,” said Michelle Auger, CFIB’s senior policy analyst.