April 24, 2024, 11:09 AM

New Launch Date for CBSA's Customs Portal Is A Welcome Delay for Canada Small Importers, Says CFIB

The Canadian Federation of Independent Business (CFIB) Wednesday welcomes the Canada Border Services Agency (CBSA)'s decision to reschedule the public launch of its mandatory portal for trade chain partners from May to October 2024.

The CBSA Assessment and Revenue Management System (CARM) will come into effect for trade chain partners in October 2024. It will require all importers to use CARM to do business internationally. However, only a quarter (25%) of small- and medium-sized businesses (SME) involved in trade are currently registered, reveals a new CFIB survey.

"We're glad to hear small businesses will be given more time to register with CARM, given the learning curve with this new system," said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB, in a statement. "The government agencies must ensure that businesses have enough time, help and resources to navigate the new system, so there are no supply chain impacts and delays at the borders."

In the past three years, nearly two-thirds (65%) of SMEs imported goods, services or both. Although the smaller the business the less likely it is to import, about half of micro-businesses with one to four employees have been involved in importing, noted CFIB.

"Small businesses import goods for a variety of reasons: to expand, meet customer demand or access specialized materials. But nearly half of them don't import that often, about once or twice a year, so having to learn how to use a new complex platform is overwhelming and time-consuming for them," Pohlmann added.

Among those not registered to CARM, about half are just not aware of it, 22% are not sure whether CARM applies to their business, 16% are relying on their brokers and 11% are confused by the registration process, according to CFIB. More than half (55%) also felt like they didn't know if CARM had considered the realities of small businesses mostly because they are unaware of what it is and how it works.

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