CARM is here – and the cutover period starts October 4, 2024
- The CARM cutover period will take place from October 4 (4:00 pm ET) to October 21 (3:00 am ET). This is necessary for CBSA to transition from the old system to the new one.
- The CARM Portal will be unavailable during the cutover period.
- Importers need to register their company in the CARM Portal before October 4th.
- Importers who haven’t registered in the CARM Portal or haven’t delegated authority to their customs broker will experience significant border delays starting October 4th.
For more details, please see Customs Notice 24-29: Preparing for the CARM October Implementation – Cutover Period.
Here’s what’s new with CARM:
- A new Commercial Accounting Declaration (CAD) will be used instead of the current customs coding (B3) and request for adjustment (B2) forms.
- Commercial invoice lines will no longer be consolidated as they are today with B3 lines. Instead, each commercial invoice line will require a separate declaration line on the CAD.
- The CARM system will automatically calculate duties and taxes based on the information provided by the importer/broker on the CAD.
- Importers/brokers can make changes to their CADs before and after the payment due date, creating a new digital version of the CAD.
- Any corrections or adjustments made to a CAD will be recorded as a new version of the original declaration.
- All versions of the CAD, including any adjustments and amendments, are recorded in the transaction history for audit purposes.
If you have any questions or need assistance with the registration process, please feel free to contact your Client Care representative or Mark Glionna, Vice President—Client Relations & Business Development.
Seamless Cross-Border Trade: Expert Canadian & US Customs Consulting Services
At Universal Logistics, our Canadian and U.S. Customs Consulting Services teams provide expert guidance to help businesses navigate the complexities of cross-border trade. From tariff classification and duty minimization to ensuring full compliance with CBSA and US Customs regulations, our team of certified customs professionals is equipped to handle all aspects of customs brokerage. Whether you need assistance with CUSMA/USMCA management, duty drawback filings or post-audit services (entry reviews, refunds and amends), Universal is here to assist on both sides of the border. Learn more about our consulting services for Canadian Customs Brokerage and U.S. Customs Brokerage.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
Canada Imposes Surtaxes on Steel, Aluminum and EVs
Effective October 15, 2024, the Government of Canada plans to impose a 25% surtax on steel and aluminum imports from China. The initial list of goods subject to surtaxes may be found in Annex 1. Descriptions are included for illustrative purposes, with the scope established by the tariff item in column 1. For precise descriptions, please refer to the Schedule to Canada’s Customs Tariff.
- The final list of goods subject to the surtax will be announced by October 1, 2024, with the surtaxes taking effect on October 15, 2024. The surtaxes will not apply to Chinese goods in transit to Canada on the day the surtaxes come into force.
- It is the government’s intention that the surtaxes will be reviewed within a period of one year from implementation and could be extended for a further period of time and supplemented by additional measures, as appropriate.
Effective October 1, 2024, the Government of Canada also intends to implement a 100 per cent surtax on all Chinese-made EVs. This includes electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans. This surtax will apply in addition to the Most-Favoured Nation import tariff of 6.1 per cent that currently applies to EVs produced in China and imported into Canada.
For more information, contact Ivy Woo, Manager – Customs Consulting Service.
U.S. Increases Tariffs on Chinese Imports by Billions
On September 13, 2024, the United States Trade Representative (USTR) issued a statement regarding the timelines for the China Tariff increases on $18 billion worth of imports from China.
Ambassador Katherine Tai stated, “Today’s finalized tariff increases will target the harmful policies and practices of the People’s Republic of China that continue to impact American workers and businesses. These actions underscore the Biden-Harris Administration’s commitment to standing up for American workers and businesses in the face of unfair trade practices.”
Tariff increases in 2024 will apply to products entered for consumption or withdrawn from the warehouse for consumption on or after September 27, 2024.
Tariff increases in 2025 and 2026 will apply to products entered for consumption or withdrawn from the warehouse for consumption on or after January 1st of the corresponding year.
More detailed information on the revisions to China Tariffs is available in USTR’s Federal Register Notice, which can be found here.
Background
The following statement from the White House was issued on May 14, 2024:
“Following an in-depth review by the United States Trade Representative, President Biden is taking action to protect American workers and American companies from China’s unfair trade practices.
To encourage China to eliminate its unfair trade practices regarding technology transfer, intellectual property, and innovation, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.”
The following tariff increases have been proposed:
- Certain steel and aluminum products will increase from 0–7.5% to 25% this year, and battery parts will rise from 7.5% to 25%.
- Lithium-ion EV batteries will increase from 7.5% to 25% this year, while lithium-ion non-EV batteries will increase from 7.5% to 25% in 2026.
- Certain other critical minerals will increase from zero to 25% this year.
- Solar cells will increase from 25% to 50% this year.
- Syringes and needles will go from zero to 50% this year.
- Certain personal protective equipment, including certain respirators and masks, will increase from 0–7.5% to 25% this year.
- Semiconductors will increase from 25% to 50% by 2025.
- Natural graphite and permanent magnets will increase from zero to 25% in 2026.
- Rubber medical and surgical gloves will increase from 7.5% to 25% in 2026.
USTR expects to launch the machinery exclusions process soon, as well as the comment period for proposed modifications of tariff rates on certain tungsten, wafers, and polysilicon tariff lines.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
Asia Faces Major Airfreight Capacity Shortages
The peak season for airfreight started in September, and it has already been challenging to secure capacity. Demand from Asia is very strong due to the surge in e-commerce goods, pushing capacity limits. People are still purchasing goods, and due to heavy inflation in many countries, they are buying cheaper items through e-commerce sites. Apple has moved its manufacturing back to China and is set to roll out its iPhone 16, which will further add to the capacity constraints.
The increase in demand is causing congestion at transit hubs in Korea, Taiwan, Japan, and the Philippines. Singapore’s space challenges have also been heightened by the fact that some airlines no longer fly over Iranian airspace for long-haul routes.
Analysts expect that rates from South China to North America will rise this month. We recommend building in additional lead time if you have an urgent shipment to move by air and starting to plan with Universal as early as possible.
For more information, please contact Debbie McGuire, Director of Freight Solutions.
Global Spotlight Quiz
Name the city known for the Calanques National Park
- One of the oldest cities in Europe – founded by the Greeks around 600 BC.
- Has one of the biggest commercial ports in the country.
- Has a vibrant music and arts scene and is home to numerous galleries and cultural institutions.
- Notre-Dame de la Garde basilica is one of the city’s most famous landmarks.
- Setting for numerous films like “The French Connection” and “Love Actually”.
Answer: Marseille, France
For more information about shipping freight to or from this city, contact Debbie McGuire, Director – Freight Solutions.
Quick Tip
Timing is everything with your international trading partners
Remember to consider time zones when communicating with your international trading partners. People working in Europe are generally 5-6 hours ahead, so it’s best to begin your day with them. Use the mid-day to communicate with trading partners in your time zone, and reserve the end of the day for business contacts on the West Coast of North America (who are three hours behind) or correspond with contacts in Asia or Europe, who will see it first thing when they start their workday.
At Your Service
Rhiannan Stacey
US Customs Operations
Rhiannan (Nan) Stacey joined Universal Logistics USA in August 2022. She works at our Buffalo, NY office and is responsible for handling cross-border clearances from 4:00 pm to 12:00 am. Nan has extensive knowledge in handling customs clearances at all ports across the U.S.
You can reach Rhiannan by email.
US Customs Operations
SMART Logistics
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