Customs Act amendments to enable CARM launch

Summary#

This order sets May 13, 2024 at 3:00:00 a.m. Eastern Daylight Time as the day and time when parts of the Budget Implementation Act, 2021, No. 1 (sections 209–211) and the Budget Implementation Act, 2022, No. 1 (sections 303, 329, 330) come into force. The changes amend the Customs Act so the Canada Border Services Agency can launch the next phase of its digital import-accounting system, known as CARM.

What it does#

• Fixes the coming-into-force date and time: May 13, 2024 at 3:00:00 a.m. Eastern Daylight Time for sections 209–211 of the Budget Implementation Act, 2021, No. 1 and sections 303, 329, 330 of the Budget Implementation Act, 2022, No. 1.
• Enables the full launch of CARM (Assessment and Revenue Management), the CBSA’s updated system for accounting and collecting duties on imported goods.
• Changes to the Customs Act that support CARM, including:
  • introducing a rule for a “prescribed day” after which a correction becomes a re‑determination and interest on duties starts to accrue;
  • allowing regulations (on the recommendation of the Minister of Finance) to set interest‑free periods for duties;
  • requiring that deposits, bonds or other security follow terms that can be set by regulation;
  • letting regulations specify when, how and where payments to the Receiver General must be made, and allowing different payment rules by amount or type of goods;
  • clarifying that bonds, deposits and other acceptable forms of security are permitted and letting the government prescribe their terms.

Who's affected#

• Importers of commercial goods and their financial officers.
• Customs brokers and service providers who handle entries and payments.
• Carriers and other trade chain partners (TCPs) that interact with the CBSA’s systems.
• Canada Border Services Agency staff who run the new system and oversee compliance.
• The Receiver General is named in relation to payment rules.
• Exact costs or compliance burdens depend on the final regulations that support these changes (those financial details are set out in the related regulatory analysis).

Why it matters#

• It lets the CBSA switch from older, paper or legacy systems to a digital platform for duties and security. That can speed processing and create clearer financial records.
• Some businesses will need to set up electronic payment and security processes and finish onboarding to the CARM tools before May 13, 2024. That can affect cash flow and how soon interest begins on owed duties.
• The government delayed the launch date to give industry more time to prepare; the order ensures the legal changes start only when the system is ready.
• The government says the coming-into-force itself has no direct financial implications, but the supporting regulations include more detailed financial impacts.