Importers say a new online portal for collecting taxes on goods shipped into Canada is creating headaches ahead of its rollout this week, with potential implications for consumers.
The federal government’s digital platform for paying duties is set to come online Monday in an effort to streamline the old, paper-based process that customs officials relied on for decades.
The new platform is known as the Canada Border Services Agency Assessment Revenue Management project, or CARM.
The CBSA says the portal will smooth out cross-border transport by offering tens of thousands of shippers direct access to their information and a user-friendly platform for submitting documents while shoring up enforcement. But early feedback suggests the transition isn’t going smoothly for all.
Many of the complaints revolve around registration, while others relate to navigating the platform itself, which will be used to collect some $40 billion in annual revenue.
Lisa McEwan, co-owner of customs brokerage firm Hemisphere Freight, says she’s had to hire new staff to handle the “onboarding” process and help clients make payments amid confusion over issues ranging from business numbers to customs bonds.
If the information submitted to create an account or process a transaction fails to match up perfectly with info held by the Canada Revenue Agency, the user cannot register or go through with the shipment, she said.
“Sometimes the CRA even has a different address—they'll have unit 68 but really you’re unit 69, and that doesn’t allow you to onboard the portal,” said McEwan, whose clients haul products ranging from carpets to kitchenware.
“Then you have to call the CARM hotline. At one point you were getting a ticket and it was about a four-week window before they would even get in touch with you.”
Federal employees seemed “overwhelmed,” she added.
“CARM is replacing several aging systems currently in use at the CBSA in order to improve compliance with trade rules, reduce lost revenue and simplify the import process,” the agency said in an emailed statement.
“This important milestone follows broad consultation with stakeholders and extensive system testing to ensure a smooth transition from outdated to modern systems.”
Nonetheless, the hurdles of the new direct-reporting system may lead to backlogs in the short term.
“There’s going to be some delays. And any time there’s delays in trade, then there’s usually costs associated. And those costs are passed on to the consumer,” said Dave Pentland, vice-president of Carson International, a licensed customs broker based in Vancouver.
Others claim some importers may scrap Canadian shipments entirely.
“I’ve had clients who are in the U.S. and they’re like, ‘You know what, I don’t have time, we’re just going to have to get the consignee (the receiver) in Canada to handle that,’” said McEwan. “So there could be less products available because of all these hoops you have to go through.”
Some 99,300 shippers were registered to use the portal as of Oct. 14, the CBSA said. However, the number of import businesses stood at 163,881 last year, according to Statistics Canada, suggesting that tens of thousands of Canadian importers have yet to sign up.
The registrations follow a so-called soft launch one year ago intended to allow some importers to test their internal systems and work out software kinks, the government said.
