Commercial Importers Provided 30-Day Extension to Submit Financial Security

March 26, 2025. Following up on a request made by a number of stakeholders, Treasury Board has approved a regulatory package for a 30-day extension to the period in which imported goods may be released prior to payment without giving financial security until May 20, 2025 at 3:00 am (EDT). An importer who does not meet the financial security requirement of Release Prior to Payment (RPP) by the end of the transition period will no longer be able to benefit from having their goods released at the border prior to making payment of the duties and taxes. Key Details:

• The original 180-day transition period, which began with the external launch of CARM on October 21, 2024, has been extended.
• Importers now have until 3:00 am (EDT) on May 20, 2025 to post their financial security in the CARM system.
• Failure to post financial security by this deadline will result in the loss of benefits under the RPP program, requiring payment of all duties and taxes before goods can be released at the border.

Action Required: Importers and trade chain partners (TCPs) are strongly encouraged to take immediate action by providing financial security in CARM, if they are already enrolled in RPP or by enrolling in the program before the end of the transition period. Importers choosing to participate in the RPP program will now have until 3:00 am (EDT) on May 20, 2025 to post their financial security in the CARM system. Commercial goods belonging to RPP participants will continue to be released prior to payment without a posted financial security until this date. Benefits of the RPP Program:

• Accelerated Goods Release: Minimize potential costs and delays.
• Deferred Accounting and Payment: Improve cash flow management.
• Enhanced Supply Chain Efficiency: Reduce border wait times and expedite customs clearance.

Importers who do not post financial security by May 20, 2025 will no longer be able to benefit from having their goods released electronically at the border prior to making payment of the duties and taxes. Without RPP, importers will have to pay all duties and taxes at the time of arrival at a port of entry. Quick Facts:

• The new financial security model requires all commercial importers to post their financial security in CARM either by making a deposit into their importer account or by entering into a financial security agreement with a provider.
• Participating in the RPP program offers several advantages, including accelerated goods release, deferred accounting and payment, and enhanced supply chain efficiency.

Memorandum D17-1-8 provides detailed instructions for TCPs to follow in enrolling in the Release Prior to Payment program. If you have any questions or need assistance with the CARM system, please do not hesitate to contact us at canadianimportbonds@buckland.com.