Canadian Custom Bonds FAQs

What is CARM?

CARM stands for “CBSA Assessment and Revenue Management”. CARM is a multi-year initiative by the Canada Border Services Agency (CBSA) to modernize, streamline, and transform the process of importing goods into Canada. The key focus of this program is to make Canadian importation faster and easier, while enhancing Customs compliance.

When Does CARM Take Effect?

The CARM portal began functioning in May 2021. Once importers gain portal access, they able able to register their business number and customs bond.

 

With the release of CARM 2, all importers will be expected to fully comply with CARM. At that time, full portal functionality will be available for both importers and trade chain partners, and Importers that are not in compliance will no longer be allowed to import into Canada. According to the CBSA, CARM 2 is currently planned to come into force in May 2024, when it will become the official system of record. Further enhancements are planned to be rolled out in the Fall of 2024. 


The CBSA encourages all importers bringing goods into Canada to register on the CARM Client Portal now in advance of the May 2024 coming-into-force date.

CARM Compliance - How Do I Get Ready for CARM?

CARM compliance starts with obtaining a Canadian BN (Business Number). Once you have a BN, you can register it in the CARM Client Portal (CCP). You will also need to secure a D120 Canadian Customs Bond, a key component of Canada’s Release Prior to Payment (RPP) system, and register it in the CCP in order be CARM-compliant.

Businesses are required to be completely CARM compliant before May of 2022. We can help you every step of the way. DB Schenker Trade Solutions has over 150 years of experience, and we work with A+ rated sureties to get you the best bond at the best price. Click here to learn more about D120 bonds — Don’t delay, get started now!

How Will CARM Affect US Importers?

Once CARM 2 goes into effect, US Importers must be CARM compliant, or they will no longer be allowed to import into Canada.


As of May 2021, US Importers can register their Canadian Business Number (BN) and D120 Canadian Customs bond in the CARM portal, and can delegate authority to a Customs Broker.


DB Schenker Trade Solutions can help you acquire get a Canadian BN, acquire a customs bond, and guide you every step of the way — visit our Canadian Customs Bond page to get started.

Want More Info? Contact Us Today!

What Happens If I Am Not in Compliance with CARM?

Once CARM 2 goes into effect, importing privileges into Canada will be suspended if you are not CARM compliant. In order to be CARM compliant, you must register for an account on the CARM portal with a valid Canadian business number and a D120 Canadian Customs bond.

 

Please see our Canadian Bonds page to get started with CARM compliance. At DB Schenker Trade Solutions we can take you through the steps.

Does CARM Mean I Need a Bond?

Yes. CARM regulations require all importers to have a D120 bond on file with the Canada Border Services Agency (CBSA).

 

Visit our Canadian Customs Bond page to purchase a bond online.

What is a Canada Customs Bond/D120 Bond?

A Canada Customs Bond (D120 Bond) makes Release Prior to Payment (RPP) possible. It allows CBSA to release your goods prior to paying duties and taxes, and defer accounting and payment fees. This greatly speeds up the importing process. A D120 Bond is a required feature of the CARM (CBSA Assessment and Revenue Management) initiative.

How Much Does a Canada Customs Bond/D120 Bond Cost?

Prices vary according to the amount of bond required, and the bond duration.

 

 

Visit our Canadian D120 Bond page for more information. DB Schenker Trade Solutions has over 150 years of experience in customs and we work with A+ rated surety providers.

What Size Canadian Bond (D-120) Should Be Procured?​

D-120 Customs Bond – DB Schenker recommends starting with a Canadian Customs bond D-120 for $25K. CBSA will review after a few months and provide feedback post audit if a smaller or larger bond size is needed and DB Schenker can issue an endorsement.

How Can I Become an Importer of Record in Canada?

Both Businesses and Individuals must obtain a Business Number (BN) issued by the CRA (Canada Revenue Agency) in order to import or export items of value.

 

 

For more information visit https://www.cbsa-asfc.gc.ca/import/guide-eng.html. DB Schenker Trade Solutions can assist. The account is free of charge and can be obtained quickly.

What is NRI, GST, CBSA, CRA?

These are all terms involving Canadian Customs and Bonds:

 

NRI (Non-Resident Importer): A Non-Resident Importer (NRI) is a business located outside of Canada that ships goods to customers in Canada. The goal of the NRI program is to simplify pricing, ease the trade process for the Canadian customer, increase the U.S. company’s competitive advantage, improve shipment control and expand the U.S. company’s market reach into Canada.

 

GST (Goods & Services Tax): Goods & Services Tax (GST) is levied on supplies of goods or services purchased in Canada. It includes most products, with the exception of certain essentials such as groceries, residential rent, medical services, and financial services.

 

CBSA (Canadian Border Services Agency): The Canada Border Services Agency (CBSA) is a federal law enforcement agency that is responsible for border protection, immigration enforcement, and customs services in Canada.

 

CRA (Canadian Revenue Agency): The Canada Revenue Agency (CRA) is responsible for administering tax laws for the government of Canada, as well as most of their provinces and territories. It is comparable to the U.S. government’s IRS department.

Contact

Have questions? Click below to contact us anytime. Click here to send us an email. Or call us and speak directly with one of our experts (Monday through Friday, 8 a.m. to 8 p.m. ET). 

Schenker, Inc.
Trade Advisory & Risk Solutions
41 Pinelawn Road, Suite 110
Melville, NY 11747
Phone +1 (844) 724-8723 (in USA)
Phone +1 (516) 690-2171 (outside USA)
TradeSolutionsUS@dbschenker.com