Change in Procedure for DDP Imports into Canada:

Swiss firms registered as importers in Canada must therefore obtain a Business Number from the Canada Revenue Agency. This process is not complicated and only takes a few minutes. More info: Import-Export Program Account – Canada.ca.

In addition, the CARM: assessment and payment of duties and taxes on imported commercial goods (cbsa-asfc.gc.ca) is the new system for payment of duties and taxes on commercial goods imported into Canada that will come into effect in October 2024. Swiss firms registered as importers in Canada should inquire with their customs broker (or agent) in Canada about this.

To avoid these procedures, Swiss companies can always ship by DAP after notifying the buyer that the buyer will have to bear the cost of customs clearance in Canada.

New Import Procedures into Canada

In October 2024, the Canada Border Services Agency (CBSA), Canada’s customs authority, will launch the CBSA Assessment and Revenue Management (CARM), the new official registration system for the assessment or collection of duties and taxes. The CARM client portal will allow importers to view transactions recorded on their accounts, make payments, request and track decisions electronically, classify goods and estimate duties and taxes. The purpose of the CARM is to identify errors and discrepancies in duty and tax declarations, given that 20% of goods entering Canada are currently misclassified, resulting in a lower amount of duty being paid.

Swiss companies registered as importers of record in Canada must register with the CARM and delegate a commercial account manager to the CARM before October 2024. In addition, the CARM introduces changes to the Release Prior to Payment (RPP) program that allows importers to obtain the release of goods from the CBSA prior to final accounting and payment of duties and taxes. Importers will no longer be able to use their customs broker’s RPP guarantee to clear shipments prior to paying duties and taxes. From October 2024, they will have to deposit their own financial security. To do so, they will have to choose one of the following options:

Option 1: A financial security equivalent to 50% of their highest monthly receivables, with a minimum financial security of $5,000 per import program account.

Option 2: Cash deposit for 100% of their highest monthly receivables.

Swiss importers must ensure that they meet all requirements introduced by the CARM before October 2024. For more information, they may contact their customs broker (i.e. their agent) in Canada or the CBSA.