CARM RPP transition extended to May 20

Summary#

These final regulations change the date when a short transition rule tied to the new CARM system ends. They push back the repeal of an exception that let some importers get goods released before paying duties without posting financial security, moving the end of that transition to 3:00:01 a.m. Eastern Daylight time on May 20, 2025. The change gives importers one more month to post electronic security under the new system.

What it does#

• Replaces the earlier repeal date for the temporary exception in the Regulations Amending the Regulations Amending Certain Regulations Administered and Enforced by the Canada Border Services Agency so that the relevant rule now ends at 3:00:01 a.m. Eastern Daylight time on May 20, 2025 instead of ending earlier in April.
• Extends the transition period that let importers registered in the CARM Client Portal obtain Release Prior to Payment (the RPP Program) without posting financial security by one month.
• The instrument was registered on March 23, 2025, and the regulations come into force on the day they were registered.

Who's affected#

• Importers of commercial goods who want to use the RPP Program and who have not yet posted financial security in the CARM Client Portal.
• Customs brokers and financial security providers who help importers arrange security.
• The Canada Border Services Agency (CBSA), which manages release procedures and will continue outreach during the extended period.
• As of March 19, 2025, only 27,745 of 197,414 active importers (about 14%) had posted security — meaning roughly 86% had not and could otherwise face paper-based releases when the transition ends.

Why it matters#

• More time to post security means fewer importers will suddenly be forced into slower, paper-based release steps at the border. That helps avoid shipments being delayed.
• The extension increases the period during which goods can be released without posted security, which raises short-term financial risk for the government if duties go unpaid.
• Some benefits of the move to electronic security and faster collections under CARM will be delayed by up to one month.
• Importers who already posted security may feel they incurred costs earlier than necessary; the government cannot control commercial fees charged by security providers.