QUESTION PERIOD — Public Safety
Canada Border Services Agency
May 9, 2024
Senator Gold, new customs rules for Canadian small businesses and e-commerce entrepreneurs will come into effect on May 13, and many are worried that these rules could have a negative impact on their growth and ability to reach new customers. Can you share with us the government’s rationale behind these new measures? Would the government consider a phased-in approach to implementing these new rules at the border — and perhaps even initially implementing them on a voluntary basis?
As reported in iPolitics, as of next week, the Assessment and Revenue Management System, or CARM, of the Canada Border Services Agency, or CBSA, will require all new commercial importers to be registered on a new platform, put down a deposit or financial bond to cover duties and taxes owing and meet other onerous requirements.
Thank you. Colleagues, for the benefit of those who may not have followed this as closely as some, my understanding is that the CBSA Assessment and Revenue Management System, or CARM, will provide a number of benefits. It will eliminate cumbersome, time-consuming, paper-based processes, provide better tools that will allow Canada Border Services Agency, or CBSA, to focus its compliance and enforcement efforts on potential bad actors, improve functionality for importers through the ability to enrol in commercial programs, submit accounting documents and receive notifications through their CARM Client Portal accounts.
I’ve been informed that in response to uncertainty in the labour environment, the CBSA has rescheduled the launch of CARM to trade chain partners, or TCPs, to October 2024. The CBSA has developed and communicated transition measures to ensure continued border fluidity and timely submission of accounting and payment of duties after the implementation of CARM.
Thank you for that answer. To ensure the viability, growth and competitiveness of the sector, the small business community needs a more efficient, simpler and easier way to navigate the customs regime.
Is the government currently engaged with stakeholders to find ways of improving Canada’s customs regime and show the world that we are open for business? Small to medium-sized enterprises, or SMEs, make up 98% of Canada’s economy and employ 7.8 million people.
I’ve been informed that CBSA held approximately 100 consultations and technical working group sessions, over 160 direct engagement events and has completed multiple cycles of testing, including over 10 months of simulation with direct participation by CBSA employees and industry. Industry, on its part, has worked to be ready with approximately 71,500 importers now registered in CARM. Those importers represent over 92% of the volume of goods imported.
