Canada Customs complicates carrier codes

The Canada Border Services Agency (CBSA) has recently updated its procedures for issuing carrier codes, particularly affecting marine carriers and shipping companies.

Previously, carriers and shipping companies could obtain these codes through a paper-based application process, often facilitated by agents. However, with the implementation of the CBSA Assessment and Revenue Management (CARM) system, the process has transitioned to a digital platform, introducing several key changes:

• Mandatory CARM Registration: Marine carriers and shipping companies entering Canada for the first time and without an existing carrier code must now register in the CARM Client Portal to obtain a code. Notably, agents can no longer apply for a carrier code on behalf of shipping companies, even if they are registered in the CARM portal.
• Discontinuation of Paper-Based Applications: The CBSA has discontinued the previous paper-based process for carrier code applications. Consequently, there is no longer a temporary code issuance process for shipping companies facing imminent vessel arrivals.
• Business Number Requirement: Foreign marine carriers and shipping companies must first apply for a Canadian Business Number (BN) before proceeding with the carrier code application. Non-resident carriers and shipping companies must acquire their BN directly from the Canada Revenue Agency portal, rather than through the CARM portal.
• Bonded vs. Non-Bonded Status: Carriers and shipping companies wishing to transition from a non-bonded to a bonded carrier code must complete registration in the CARM portal to facilitate this change. The CBSA strongly recommends that marine carriers and shipping companies apply for a bonded carrier code, as a bond is required anytime unreleased goods move beyond the first port of arrival (FPOA).

These changes aim to streamline and modernize the carrier code application process. However, they also introduce new complexities, especially for shipping companies unfamiliar with the CARM system or those who previously relied on agents for application submissions. It is crucial for shipping companies to familiarize themselves with the CARM portal and ensure all necessary registrations, including obtaining a Canadian Business Number, are completed promptly to avoid disruptions in their operations.

For detailed guidance on the updated requirements and the application process, carriers and shipping companies can refer to the CBSA’s official guidelines.