CARM and The New E29B

The Customs procedures for temporary entry of goods into Canada, or as it’s better known, the E29B, are changing when CARM arrives. If you are a commercial importer who makes or intends to make temporary imports, then now is the time to prepare for these changes. 

Here is a hint of what is to come:

• The process is longer, and any attempt to rush it ‘at the border’ will be met with frustration.
• Like everything under CARM, it requires you to provide your own financial security. 

With those things in mind, let’s focus on what we can expect from these changes and how best to prepare for what is to come. After all, a bit of education on what’s changing under CARM could be the difference between a smooth import and a panicked one in a few months. 

Before we get into the details, as always, it is recommended you get in touch with our team at PCB for the information your specific business needs to thrive in this new system. This post aims to inform and highlight what will be happening under CARM in the near future, but your broker is there to offer specific guidance and recommendations bespoke to your business.   

What is the E29B Currently?

For those unaware, an E29B is a special entry type that applies to imports intended to only briefly stay in the country. Typically, the E29B covers trade shows, exhibits, repairs, and manufacturing. Previously, we discussed in detail how the E29B works today along with the current process of how to import trade show items into the US and Canada. 

As detailed in the post above, the E29B differs significantly from its closest US counterpart, the Temporary Import Bond (TIB) in that it currently works off an agreement and paid deposit system for imports. Under CARM, this system is set to fundamentally change and will end up being much closer to its American counterpart. 

For Canadian Commercial Temporary Imports, What is Changing Under CARM?

As is going to be the case for every commercial entry into Canada, under CARM, importers are not allowed to use their broker’s bond—and that includes temporary imports. Instead, importers must now post their own bond into the CARM Client Portal while still applying for a Temporary Admission Permit (TAP). All temporary imports into Canada will require a TAP and the associated bond or cash deposit. 

Applications for the TAP must qualify for that permit as outlined in this D-memo.  

The application process for a TAP has become more complex with CARM. In the past, brokers could use their bond and fill out the application for clients relatively quickly - even helping those who were currently waiting at the border to cross. When CARM arrives, your broker will no longer be able to meet extenuating needs in a timely fashion, as the process now involves significant steps and necessary preparations that must be in place well before you cross. 

Prior to CARM, your broker essentially was able to recap the shipment to determine the value for duty (VFD) relying on years of experience and knowledge to guide them. The application process moved forward based on that trusted assessment, but this is also changing. CARM does not allow for these kinds of calculations, even from a trusted source, and the exact shipment details need to be determined well ahead of time. 

That, in short, means that, at the very least, a tariff classification needs to be conducted before the application for a TAP can be submitted. So, if there is one thing you take away from reading this, let it be this - discuss your application for a TAP with your broker well in advance of your crossing. 

What Do I Need to Do Now? 

Many importers have grown accustomed to the relatively quick turnaround of the previous E29B system. With the arrival of CARM, the world where you could call your broker and be on your way in an hour or two is at an end, and a more proactive approach will be required. 

There are a few other things to consider as this new regime begins in earnest:

• Everything is run through the CARM Client Portal, so if you wish for your broker to help manage your application, you will need to have delegated access. Additional service costs may apply.
• The CARM Client portal requires each individual item included on the TAP to be entered in full appraisal quality detail, just like they were being imported permanently.  This means importers will need to treat TAPS like regular imports and provide complete, detailed product descriptions for each item.
• If you work with PCB, your broker can help you with the TAP application and we can also sell you the surety bonds needed for this or any other import. For further details on these services, be sure to get in touch with our team today.

For more information about the E29B, Temporary Import Permits, bonds, or anything else in the world of global trade, please get in touch with our trade advisory team today. With CARM right around the corner, now is the time to check in and make sure you have everything you need to be successful when the new system touches down.