CARM - Mandatory importer registration and electronic payments
On October 21, 2024, the CBSA Assessment and Revenue Management (CARM) system became the official system for importers and other trade chain partners (TCPs) to account for their goods and pay applicable duties and taxes owed to the Canada Border Services Agency (CBSA).
With the implementation of CARM all importers are now required to:
- register in the CARM Portal
- pay duty and GST directly to CBSA in Canadian funds
CARM Registration
- Mandatory for all importers into Canada. If not already registered, you must register in the CARM Portal immediately; otherwise, you may be subject to clearance delays and CBSA penalties (based on late accounting, late or non-payment of duty and GST).
- Without your CARM registration and delegation of authority as your broker in the CARM Portal, Universal Logistics will not be able to manage your future clearances, as we will not be authorized to send the required CAD (Commercial Accounting Declaration) to CBSA to account for transactions on your behalf.
For information and instructional videos about CARM registration and Delegation of Authority, please visit Universal Logistics – What is CARM? or log in to CBSA’s CARM Portal.
Here’s what you need to know:
- All importers must now pay CBSA directly for their import duty and GST.
- Universal Logistics’ invoices to clients will no longer include import duty or GST.
- All clients will now receive a separate statement from Universal outlining the customs entries and duty and GST payable on transactions managed by Universal (this report is sent on the 25th of each month – once the CBSA Statement of Account (SOA) is available).
- All importers should verify their duty and GST payable by logging into the CARM Client Portal and viewing their monthly SOA.
- All clients must make the duty and GST payment directly to CBSA through online e-payment, Pre-Authorized Debit (PAD) through the CARM Portal, or by EDI (EDI820).
- Importer payments must be made 10 weekdays after the 17th of each month (typically coinciding with the last business day of each month).
- Your first duty & GST payment is payable to CBSA by October 31, 2024.
- All importers must post security for their import duty and GST. CBSA has given a 180-day grace period (from October 21) for importers to comply – Universal can assist with securing your bond.
Electronic payment options to CBSA
Electronic duty and GST payments will only be accepted by CBSA utilizing one of the following electronic payment options:
- Online banking via the financial institution’s website
- Online via the CARM Client Portal (CCP)
- Pre-Authorized Debit (PAD)
- Credit card (up to $4,999.99 Canadian dollars)
- Interac® Online (subject to the limit imposed by the card’s financial institution)
- Electronic Data Interchange (EDI820)
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.
Hassle-Free Canadian Customs Clearance
Navigating Canada’s complex customs regulations has never been easier with Universal Logistics’ comprehensive customs brokerage solutions. Our experienced team ensures your goods clear customs efficiently, minimizing delays and compliance risks. Whether you need assistance with CARM registration, duty payments, or handling your Commercial Accounting Declarations (CADs), we provide personalized support tailored to your business.
Visit our Canadian Customs Brokerage page to learn more, or contact us for more information.
Update: Port Strikes
US East Coast
The International Longshoremen’s Association (ILA), ended their strike on October 3rd, with US East Coast ports re-opening on October 4th. The union reached a tentative agreement with the United States Maritime Alliance Ltd. (USMX) on wages and extended the current master contract until January 15, 2025, five days before the new U.S. president takes office. In a joint statement, both parties said they would return to the bargaining table to negotiate all other outstanding issues. The backlog and subsequent congestion are expected to be a factor for at least the remainder of October.
Port of Montreal
Longshore Workers Union (CUPE Local 375) at the Port of Montreal began a halt to all overtime work on October 10th, putting further pressure on their employers, the Maritime Employers Association (MEA). The union has said that scheduling remains a key issue in the bargaining sessions, which resumed last week alongside federal mediators. The MEA, which represents shipping companies and terminal operators, says that the freeze on overtime work will have a big impact on operations. At a meeting held on October 15th, the Labour Minister, Steven MacKinnon, proposed the appointment of a special mediator so that parties can resume negotiations without any pressure tactics from either party for 90 days. The MEA and the Union were to submit responses to the Minister of Labour no later than Friday, October 18th at 5:00 p.m.
In the latest update, dockworkers at the Port of Montreal walked off the job for 24 hours on October 27th, in a bid to ramp up pressure on management amid a labour standoff. The move comes on top of an ongoing strike on overtime shifts, and a three-day strike at two container terminals that ended earlier this month. The action also follows a failed bid by the federal labour minister to freeze work stoppages and revamp talks via a special mediator, with contract negotiations now at a standstill. The MEA says the pressure tactics are hurting operations and the port’s reputation. It says it hopes for an agreement reached at the bargaining table, but that after 35 mediation meetings over 15 months the parties remain at an impasse.
British Columbia Ports
In September, the union representing foremen at BC ports, the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 (ILWU Local 514), advised that their members have voted to authorize strike action if necessary, in an ongoing labour dispute with BC Maritime Employers Association (BCMEA). Thus far, no 72 hour strike or lockout notice has been issued. The BCMEA continues to advise that they remain committed to bargaining in good faith to seek a balanced agreement, which will recognize the hard work of the ILWU members while ensuring that BC ports remain competitive.
On October 23, the Canada Industrial Relations Board (CIRB) provided a written decision on outstanding issues between the BCMEA and the ILWU Local 514, and has found, for the third time in this round of negotiations, that Local 514 has bargained in bad faith (Canada Industrial Relations Board’s decision). Subsequent to this, the BCMEA and the ILWU Local 514 were scheduled to meet with the assistance of the Federal Mediation and Conciliation Service (FMCS) on Tuesday, October 29, and continue as necessary on October 30 and 31.
Canadian Rail
After the decision by the Canadian Industrial Relations Board (CIRB) to impose binding arbitration on both parties on August 24th, following an unprecedented dual work stoppage at Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC), the Teamsters Canada Rail Conference (TCRC), representing more than 9,000 rail workers at both companies, launched court challenges to this back-to-work order. On August 29th, the union filed four separate challenges in the Federal Court of Appeal, disputing the directive for binding arbitration and asking that the proceedings be expedited. However, Canada’s justice system is famously slow-moving, and whoever loses the appeal is likely to take it to the Supreme Court, which means the case could take years to resolve.
On October 23rd, CN announced that CN and the TCRC have recently agreed on an arbitrator to determine the terms of the next collective agreement. Mediation meetings will occur over seven days in March 2025. If a mediated settlement is not reached during those seven days, arbitration will be scheduled to take place in April. Per the protocol negotiated between parties, the arbitrator will have sixty days to rule. Because of the foregoing, a decision is expected before the end of Q2.
In a separate labour issue, Unifor has initiated contract negotiations with CPKC after it had previously opened negotiations with CN. Unifor represents approximately 3,500 mechanical, clerical and intermodal employees at both railways. On September 27th, three days after beginning negotiations with CN, Unifor filed a notice of dispute with Canada’s labour minister, also known as “conciliation”. On October 8th, CN announced in a press release that the labour minister appointed three conciliators who will assist the parties with reaching an agreement. The conciliation period will last 60 days, concluding December 2nd, followed by a 21-day cooling-off period. There can be no work stoppage before January 1, 2025, as the collective agreement remains in effect until December 31st, CN officials said.
For more information, contact David Lychek, Director – Ocean & Air Services.
Country of melt and pour updates for steel imports into Canada and the USA
Customs authorities in both Canada and the U.S. will require importers to identify the county of melt and pour (COM) on imports of steel.
The country of melt and pour refers to the original location where the raw steel is first produced in a steel-making furnace in a liquid state and then poured into its first solid shape. The first solid state can be either a semi-finished product (slab, billets or ingots) or a finished steel mill product. The location of melt and pour is customarily identified on mill test certificates, generated at each stage of the production process and maintained in the ordinary course of business.
To ensure this information is available during import, importers must ensure the COM is indicated on their import commercial documents to prevent delays at Customs.
Canada
On February 21, 2024, the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, announced that as of November 5, 2024, steel importers will be required to report “country of melt and pour” information to the Canada Border Services Agency (CBSA) when completing their customs declarations under Canada’s Steel Import Monitoring Program.
The Global Affairs Canada regulatory changes will add the reporting of the country of melt and pour for steel importations as a condition of using the General Import Permit (GIP 80 and GIP 81).
Carbon steel products (ICL item 80) include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheet and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes, but excludes the specialty steel products referred to in item 81. These items are covered by HS headings 7206-7217, 7225-7229, 7302, 7304-7306.
Specialty steel products (ICL item 81) are stainless steel flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, stainless steel in ingots or other primary forms, semi-finished products of stainless steel, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7218-7224, 7301, 7308, 7312-7313, and 7317.
Global Affairs Canada will analyze and publish this data in the steel import monitoring program reports.
For more information and FAQs, please reference the notice and news release from Global Affairs Canada.
USA
President Joseph Biden determined that, as per Proclamation 10783, effective November 21, 2024, importers are required to report to U.S. Customs and Border Protection (CBP) the country of melt and pour for certain imported steel articles from all countries and for imported derivative steel articles that are products of Mexico; regardless of whether Section 232 duty treatment, quota treatment, or exception treatment applies.
For purposes of implementing the melt and pour requirements in this and other proclamations, importers of steel and steel derivative articles shall provide to CBP the information necessary to identify the countries where the steel used in the manufacturing of steel article imports, covered by clause 1 of Proclamation 9705, and derivative steel articles, specified in Annex II of Proclamation 9980, are melted and poured. CBP shall implement the melt and pour information requirements as soon as practical.
Steel articles are defined at the HTSUS 6-digit level as 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTSUS classifications.
Derivative steel products:
(A) nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), suitable for use in powder-actuated hand tools, threaded (described in subheading 7317.00.30); and
(B) nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), of one piece construction, whether or not made of round wire; the foregoing described in statistical reporting numbers 7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5560, 7317.00.5580 or 7317.00.6560 only and not in other statistical reporting numbers of subheadings 7317.00.55 and 7317.00.65;
(C) bumper stampings of steel, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in subheading 8708.10.30); and
(D) body stampings of steel for tractors suitable for agricultural use (described in subheading 8708.29.21).
For more information and FAQs, please reference CSMS # 62582900 – GUIDANCE: Section 232 Melt and Pour Requirements.
For more information or to discuss how this may affect your business, please contact Marion Bradnam, General Manager – Customs Services or Lukas Hamann, Manager – Border Clearances.
Global Spotlight Quiz
Name the city with a TV Tower modelled after the Eiffel Tower
- The name means ‘dry, great river’, in reference to the Toyohira River.
- Renowned for its world famous beer and breweries.
- Hosted the 1972 Winter Olympics.
- A popular destination for winter sport enthusiasts.
- Hosts a famous snow festival every February.
- During spring, the city’s parks and streets bloom with beautiful cherry blossoms.
For more information about shipping freight to or from this city, contact Debbie McGuire, Director – Freight Solutions
Quick Tip
Put delivery and handling instructions in more than one place
Increase your chances of completing a successful package delivery by putting handling and delivery instructions on at least three of the surfaces. This simple step will not only lead to fewer stray deliveries but also help avoid the damage caused when a package is only marked in one place and has to be flipped to find the labelling.
At Your Service
Mariana Minero
Freight Solutions
Mariana Minero joined Universal Logistics in September 2022 as a member of our Head Office Freight Solutions team. In this role, Mariana coordinates shipments from Europe and Asia and manages our weekly ocean import consolidation service from the UK. Mariana has excelled in this position while continuing to develop and expand her knowledge.
Mariana’s excellent customer service skills and attention to detail ensure that our clients’ needs are well taken care of, and make her an invaluable member of the Freight Solutions team.
Mariana can be reached by phone (905) 882-4880, ext. 1211 or by email.
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