Canadian shippers have pleaded with cabinet to delay the May 13 launch of a digital customs collection scheme 42% over budget, according to Blacklock’s Reporter. “If it launches and launches poorly, this will land on the government’s feet because they have been warned,” said Conservative MP Kyle Seeback (Dufferin-Caledon, ON) in a speech to the House of Commons Trade Committee (CTC).“Every single stakeholder that has submitted something has said the system is not ready, that it won’t work and that it will have disastrous effects on importers in this country.”The project was budgeted at $370 million, but it has cost $526 million to date by official estimate. The Canada Border Services Agency (CBSA) Assessment and Revenue Management System (CARM) proposes to digitize billing and collection of customs duties on imports worth $564 billion per year. By May 13, the CBSA said all importers must register and adjust their IT systems. Seeback read into the CTC record a censored 2022 Access to Information and Privacy email by the CBSA acknowledging significant concerns from shippers and the completion date is unfeasible. Its managers insist the system is ready. “We understand transitioning to CARM is a big change,” said CBSA Executive Vice President Ted Gallivan. “With any big change, there is apprehension and we acknowledge there are partners in the business community who are concerned about this coming change.”Of 200,000 shippers in Canada, including 80,000 deemed active importers, 56,000 have registered to date. “Colour us skeptical on this side,” said Conservative MP Matt Jeneroux (Edmonton Riverbend, AB).Jeneroux asked what Plan B is if technical difficulties happen. “We do have a rollback plan,” said Gallivan.Since a rollback plan exists, Jeneroux asked for clarity. “That is correct,” said Gallivan.Jeneroux said it would roll back to the old system. “If we discover there is a catastrophic failure, of course we’ve developed a contingency plan for that,” said Gallivan.While he said it was prepared, Jeneroux admitted he did not believe him. “That’s the point,” he said. “It’s 10 years and this much money.”The Canadian Society of Customs Brokers (CSCB) said it was unaware of any rollback plan. “A Big Bang approach to implementation was the only option for CARM,” said CSCB Vice Chair Candace Sider. “As such, customs brokers and importers have invested millions of dollars in reprogramming their own systems.” Once trade begins to cut over to CARM, Sider said a rollback to the old system will not be an option. The Canadian Association of Importers and Exporters (CAIE) said it feared disruption to cross-border trade after May 13. “The system is not ready,” said former CAIE chair Kim Campbell. “We have no confidence in where we are now and if the Canada Border Services Agency still insists on implementing on May 13, there will be extreme stress imposed on industry trying to figure it all out.”When it comes to the May 13 changeover, Canadian Federation of Independent Business Executive Vice President Corinne Pohlmann said many small importers had not heard of it. “The smaller the business, the less likely they are registered,” said Pohlmann. “For those not registered to CARM, about half are just not aware of it.”
Canadian shippers have pleaded with cabinet to delay the May 13 launch of a digital customs collection scheme 42% over budget, according to Blacklock’s Reporter. “If it launches and launches poorly, this will land on the government’s feet because they have been warned,” said Conservative MP Kyle Seeback (Dufferin-Caledon, ON) in a speech to the House of Commons Trade Committee (CTC).“Every single stakeholder that has submitted something has said the system is not ready, that it won’t work and that it will have disastrous effects on importers in this country.”The project was budgeted at $370 million, but it has cost $526 million to date by official estimate. The Canada Border Services Agency (CBSA) Assessment and Revenue Management System (CARM) proposes to digitize billing and collection of customs duties on imports worth $564 billion per year. By May 13, the CBSA said all importers must register and adjust their IT systems. Seeback read into the CTC record a censored 2022 Access to Information and Privacy email by the CBSA acknowledging significant concerns from shippers and the completion date is unfeasible. Its managers insist the system is ready. “We understand transitioning to CARM is a big change,” said CBSA Executive Vice President Ted Gallivan. “With any big change, there is apprehension and we acknowledge there are partners in the business community who are concerned about this coming change.”Of 200,000 shippers in Canada, including 80,000 deemed active importers, 56,000 have registered to date. “Colour us skeptical on this side,” said Conservative MP Matt Jeneroux (Edmonton Riverbend, AB).Jeneroux asked what Plan B is if technical difficulties happen. “We do have a rollback plan,” said Gallivan.Since a rollback plan exists, Jeneroux asked for clarity. “That is correct,” said Gallivan.Jeneroux said it would roll back to the old system. “If we discover there is a catastrophic failure, of course we’ve developed a contingency plan for that,” said Gallivan.While he said it was prepared, Jeneroux admitted he did not believe him. “That’s the point,” he said. “It’s 10 years and this much money.”The Canadian Society of Customs Brokers (CSCB) said it was unaware of any rollback plan. “A Big Bang approach to implementation was the only option for CARM,” said CSCB Vice Chair Candace Sider. “As such, customs brokers and importers have invested millions of dollars in reprogramming their own systems.” Once trade begins to cut over to CARM, Sider said a rollback to the old system will not be an option. The Canadian Association of Importers and Exporters (CAIE) said it feared disruption to cross-border trade after May 13. “The system is not ready,” said former CAIE chair Kim Campbell. “We have no confidence in where we are now and if the Canada Border Services Agency still insists on implementing on May 13, there will be extreme stress imposed on industry trying to figure it all out.”When it comes to the May 13 changeover, Canadian Federation of Independent Business Executive Vice President Corinne Pohlmann said many small importers had not heard of it. “The smaller the business, the less likely they are registered,” said Pohlmann. “For those not registered to CARM, about half are just not aware of it.”
