CARM – Deadline to obtain or update financial security is April 19!
All importers are required to post security with the Canada Border Services Agency (CBSA) by April 19, 2025, when the Release Prior to Payment (RPP) 180-day transition period ends, using one of the following two options:
- Option 1: a financial security instrument, e.g. RPP bond, for 50% of their highest monthly accounts receivable (inclusive of GST) with a minimum financial security of $5,000 per import program (RM)
- Option 2: cash security deposit for 100% of their highest monthly accounts receivable (inclusive of GST)
Recommendation – obtain a bond for a higher amount than required to avoid costly bond endorsements
(associated with fluctuations in importer security requirements)
Importers who have not yet obtained an RPP bond:
Here’s what you need to do:
To determine your Financial Security requirements, log into the CARM Portal and follow the following 3 steps:
- Go to the Financial security page (Home or Menu – Financial information – Financial security) to view your Financial security dashboard.
- The first item listed on the Financial security dashboard displays your Financial security overview, which includes the following:
- Total security required: how much financial security you need for your account
- Current security coverage: how much financial security you have
- Contact your Universal Logistics Client Care Representative to assist with securing your RPP bond.
Importers who have already secured their RPP bond with CBSA:
Here is what you need to do:
Ensure you have the required coverage – log into the CARM Portal to review your current security coverage ahead of the April 19, 2025 deadline and follow the 3 steps outlined above.
The CARM system uses a nudging framework to encourage real-time compliance with financial security requirements. The nudging framework is used for RPP importers only. When an RPP importer’s financial security utilization is approaching (for example, greater than 75%) or over capacity (greater than 100%), the CARM system will nudge the importer to either increase the financial security posted or post-payment to reduce the account balance.
During the current 180-day RPP transition period, these ‘nudges’ or financial security notifications are for information purposes only, reminding importers to post the applicable financial security before the end of the 180-day transition period to continue benefiting from the RPP privilege.
Universal has secured very competitive RPP Bond rates with our Surety. To take advantage of these rates please contact your Client Care representative or Mark Glionna, Vice President—Client Relations & Business Development.
Take Your Shipments to New Heights with Universal Logistics Air Freight Services
When time is critical, Universal Logistics’ air freight solutions offer the speed, reliability, and global reach your business needs. Whether handling urgent shipments, high-value cargo, or just-in-time inventory, we ensure fast and seamless delivery through our trusted airline partners. With priority air freight services, flexible shipping options, and expert customs clearance, we help minimize transit times and streamline your supply chain. Let Universal Logistics take your shipments to new heights—contact us today to explore how our air freight expertise can keep your business moving forward.
Canada/USA Trade War – Tariffs
US President Donald Trump kept the trade world on edge in February with the announcement of a multitude of tariffs, and the next couple of weeks are sure to be a nail-biter with the following deadlines coming up:
- March 4th – 25% tariff on Canadian made goods (10% on energy products)
- March 12th – 25% tariff on all Steel and Aluminum and derivative products (from electrical conduit tubing to furniture)
On February 18th, Donald Trump also floated the idea of more tariffs which may be announced on April 2nd.
- 25% on imports of vehicles
- 25%, or more, on imports of pharmaceuticals and semiconductor chips
- Reciprocal tariffs on all countries
Watch for our Trade Alerts as more information becomes available.
Cargo Insurance – Limited Liability
Limit of liability determines the maximum amount of money that carriers can be held liable for in the event of damage or loss of cargo. The limits of liability vary between carriers and mode of transport, however, in most cases they do not reflect the value of the cargo. Instead, freight liability reimbursements will typically be based on weight, not the true value of your cargo, potentially exposing shippers to financial risk.
This can come as an unpleasant surprise to shippers, as many are under the impression the parties involved in a claim will provide them with complete reimbursement. To many, this is the first time they are made aware of limited liability, and the fact that the liability of the carriers is very low.
Also, to be very clear, carrier limit of liability only covers damage or loss that occurred due to carrier negligence. To settle a claim, the responsibility to prove that the damage was the fault of the carrier is typically on the importer or exporter, which can be difficult to verify in many cases, affecting the ability to receive even minimal reimbursement. In reality, more than half of all limited liability claims are denied outright because shippers fail to meet the stringent burden of proving carrier negligence. There is also no official deadline to settle a claim, so the process could drag on for months and would not include reimbursement for any freight charges paid.
The only way to protect your interests is to have cargo insurance in place for all of your shipments, especially for cargo you control, from a freight cost perspective. If you are responsible for the freight charges (we always recommend you control your freight), you would normally be responsible for ensuring your shipment has proper cargo insurance in place.
Cargo insurance gives you total coverage, and ensures you receive full compensation in the event of loss or damage. At the same time, your cargo insurance provider will coordinate the claims process with all parties involved and expedite the settlement process. Typical cargo insurance coverage will cover the commercial invoice value of the cargo as well as the freight costs and add a 10% margin to this to cover any accessorial costs incurred. This is to ensure you are fully compensated in such instances.
In terms of cargo insurance, Universal Logistics can help you find the best match between your needs and the available coverage options, with the sole purpose of protecting your interests and limiting risks when shipping.
For more information, contact David Lychek, Director – Ocean & Air Services.
Changes to import requirements for organic products
The Canadian Food Inspection Agency (CFIA) is working to strengthen import controls for organic foods through a 2-phase project.
Phase 1 of the project was completed in November 2024. This phase introduced new Other Government Department (OGD) codes into CFIA’s Automated Import Reference System (AIRS) and required importers and brokers to declare whether they have a copy of the organic products certificate in their possession. The implementation of this phase has gone well and CFIA is now ready to proceed with Phase 2.
Beginning May 26, 2025, importers and brokers will be required to provide a digital copy (image) of the organic certificate(s) as part of their Integrated Import Declaration (IID), also referred to as the CBSA Single Window.
The CBSA will assign a Unique Reference Number (URN) for each uploaded organic product certificate. The URN can be used as part of the submission when completing the declaration in the IID. This will allow importers and brokers to use the same URN for multiple shipments. Declarations may also include multiple URNs as required.
Please note that once this measure comes into effect, failure to upload a copy of the organic product certificate or a URN (where the certificate was already provided in a previous declaration) will result in a reject message until the organic product certificate digital copy or URN is provided. It is the responsibility of the importer to familiarize themselves with the newly added organic products in AIRS and ensure compliance.
Questions may be directed to the Canada Organic Regime team at OPR-RPB@inspection.gc.ca.
For more information, contact Lukas Hamann, Manager – Border Clearances.
Global Spotlight Quiz
Name the tiny country whose capital is a UNESCO World Heritage Site
- This small landlocked country has three official languages.
- Has won only one gold medal (in total) at the Olympics.
- Offers free public transportation.
- One of the safest countries and the only Grand Duchy in the world.
- The national dish is pork and beans.
- Nearly half of the workforce are cross-border commuters.
For more information about shipping freight to or from this country, contact Debbie McGuire, Director – Freight Solutions.
Quick Tip
Design your packaging to suit your chosen mode of transport
When selecting packaging for your product, always consider the intended mode of transport and design your packaging to fully optimize your load capacity.
Can the packaging be confirmed to contain more weight, stack cartons higher, or hold more units?
Always consider the dimensions of the shipping equipment (i.e. pallets, ocean container, truck trailer or aircraft) being used and know the limitations you must work within.
More efficient use of packaging will help to reduce your freight costs.
At Your Service
Emma Saieva
Canadian Customs Operations (Fort Erie)
Emma Saieva joined Universal’s Customs Operations team in Fort Erie in September 2022. In her current role, Emma facilitates the customs clearance of truck and courier shipments from the U.S. to Canada.
Emma’s outstanding customer service skills, combined with her strong attention to detail, have made her an essential and trusted member of the team. She consistently goes above and beyond to ensure that our clients’ needs are not only met but exceeded.
Emma can be reached by phone (905) 871-0220, ext. 2203 or by email.
Canadian Customs Operations
(Fort Erie)
SMART Logistics
Controlling how freight moves through your supply chain could save you thousands – or more.
Working with us means someone always asks: how can we make this shipment better?
Single-sourced trucking, customs clearance and distribution to expedite your freight shipments between the U.S. and Canada.
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Route is produced by Universal Logistics. Editor: Bettina Scharnberg. Email: bscharnberg@universallogistics.ca While every effort has been made to ensure the accuracy of information contained herein, Universal Logistics accepts no responsibility or liability for errors or omissions. Written correspondence should be forwarded to:
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