Language selection

Government of Canada / Gouvernement du Canada

Search

What we heard report: Consultation on the use of the customs broker business number (BN) following importer of record legislative changes

Following the launch of the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) system, on , importers were given a 12-month grace period to allow for the use of a customs broker’s business number, specifically the BN15, under specific scenarios. This allowed importers time to obtain the release prior to payment privilege (RPP) by entering into a financial security agreement or posting a deposit. Under CARM, importers must secure their own importations if they wish to benefit from the electronic release of their goods and can no longer use a customs broker's security and RPP to obtain release of their imported goods.

Customs brokers remain authorized to transact business with the CBSA on behalf of importers; however, the importer must register in the CARM system and delegate authority to their customs broker in order to do so.

Between and , the CBSA launched a public consultation on the continued use of the customs broker business number (BN) in cases where importers were not yet registered in the CARM system.

This public consultation forms part of the CBSA’s efforts to prepare for the upcoming Importer of Record (IOR) changes to the Customs Act. These changes will make customs brokers jointly and severally liable with the importer and owner of the goods for any amounts owing in duties and taxes when submitting declarations using their own BN. To support industry through this transition, the current temporary measure allowing customs broker BN use was extended until . Whether or not to amend the law to delay the coming into force of the IOR changes was outside of the scope of this consultation; as noted in the Canada Gazette on , the changes will come into force on .

On , through the Border Commercial Consultative Committee, the CBSA held an information session to discuss the objectives of this public consultation and to respond to any questions from industry and Canadians wishing to participate in the public consultation. The written submissions will inform updates to CBSA policies and may inform future legislative and/or regulatory proposals.

Thank you to everyone who participated.

Related links:

Our objective

The consultation gave industry and Canadians the opportunity to provide feedback on different scenarios wherein customs brokers are transacting business with the CBSA on behalf of importers. We wanted to know the anticipated challenges, as well as potential operational and business impacts that could arise once importer of record changes come into effect.

Key questions posed

We posed the following questions to stakeholders to better understand the possible scenarios in which the customs broker’s BN should still be used in CARM to account for goods.

  • What benefits do you see for businesses and the public by allowing the use of the customs broker BN in these circumstances?
  • Do you foresee any operational and business impacts by allowing the use of the customs broker BN in these circumstances?
  • Are there specific situations or sectors that may face challenges with the use of the customs broker BN in these circumstances?
  • Should any other scenario for use of the customs broker business number without the importer registering in CARM be considered, for example, for large sporting events?
  • How can the CBSA better support infrequent importers (those importing less than 10 times per year)?
  • How can a fully licensed customs broker better serve infrequent importers (those importing less than 10 times per year) and what can the CBSA do to support this?
  • How can a fully licensed customs broker serve small businesses (defined as a companies with 1 to 99 paid employees) that import goods into Canada and what can the CBSA to do support this?
  • Do you envision new business opportunities for companies or other entities to support small businesses that import goods into Canada under this framework?

Who was consulted

The CBSA sought feedback from:

  • commercial importers
  • customs brokers
  • trade chain partners
  • industry associations
  • other government departments
  • other interested stakeholders

What we heard can be broken down into the following topics:

  1. Compliance and fairness
  2. Support for small and infrequent importers
  3. Customs broker liability
  4. Trade facilitation and economic competitiveness

Compliance and fairness

There was stakeholder support for universal importer registration in CARM to maintain compliance, transparency, and a level playing field. Some stakeholders emphasized that all commercial importers should be required to register in CARM, regardless of shipment volume or frequency.

The use of customs brokers or courier BNs to clear shipments for unregistered importers is viewed by some as undermining compliance, distorting data integrity, and reducing importer accountability.

Some industry members said that current practices give couriers and customs brokers an unfair advantage, allowing them to expedite clearances without proper importer registration or oversight.

However, other stakeholders did support the limited use of broker BNs for low-value and/or infrequent importers, to prevent delays at the border and support small business.

Stakeholder feedback revealed no consensus, with some supporting universal CARM registration to ensure compliance and fairness, while others favoured limited use of broker business numbers for low-value or infrequent imports to avoid delays and support small businesses.

Related links:

Support for small and infrequent importers

Some feedback received during the consultation noted that small and infrequent importers may face challenges when registering in CARM. Some called for simplified or tiered registration options, reduced financial security requirements, and voluntary participation mechanisms for occasional or infrequent importers.

While stakeholders support CARM registration, some state that the current process is too complex. Proposed improvements include:

  • a “light” registration process
  • simplified financial security thresholds or shared bonding options for low-volume importers
  • voluntary registration options

Other suggestions included expanding eligibility for BN use to all temporary event imports and defining infrequent importers based on volume and value of shipments. This was suggested as easing temporary entries and returns without full CARM onboarding or full financial security as a condition to participate in the Release Prior to Payment (RPP). It would also benefit smaller event organizers.

Some have also recommended to remove the word “temporary” from the International Events and Convention Services Program definition which limits participation to short-term trade shows and conventions.

Stakeholders also highlighted that non-resident importers often encounter difficulties in navigating the Canadian customs system, particularly regarding registration and compliance in the CARM system. The complexity of the registration process can deter them from participating in the Canadian market.

Related departmental memoranda

Memorandum D8-1-1: Administration of Temporary Importation (Tariff Item Number 9993.00.00) Regulations 

Customs broker liability

Customs brokers are generally requesting additional precision on using their BNs on behalf of unregistered importers. There is interest in explicit definitions of who is responsible for penalties, interest, and Other Government Department (OGD) liabilities when a customs broker BN is used. There is some support for prohibiting the use of customs broker BNs.

Stakeholders in the broker community note that ambiguity related to the definition of an importer extends beyond accounting declarations, including both release declarations and liability under OGD regulations. While OGD legislative requirements are outside of the scope of the consultation, the feedback received was noted.

Some stakeholder suggestions were:

  • Reverting to a system that allows for the separation of the IOR and the surety holder within the CARM platform
  • The CBSA should issue BNs solely for the purpose of securing the release of goods on behalf of an importer who is in the process of registering, to prevent the customs broker from being jointly and severally liable
  • Create a CBSA-administered BN for small or infrequent importers to avoid shifting responsibilities onto customs brokers
  • Introduce a low-value threshold where security is not required if importers maintain payment compliance, such as pay their monthly Statements of Account (SOA) ahead of the payment due date.

Related departmental memoranda

Trade facilitation and economic competitiveness

Across submissions, stakeholders emphasized that CARM implementation and related policy changes must balance compliance assurance with trade facilitation. CARM should enable businesses to trade effectively while maintaining oversight and risk management.

Some stakeholders cautioned that too many administrative steps could discourage small businesses from using CARM and reduce Canada’s competitiveness in global trade.

Some noted that flexibility for customs brokers to use their BNs in certain low-risk scenarios could support supply chain continuity and help small business compete internationally.

Stakeholders called for simplified CARM participation requirements and better integrations of Commercial Accounting Declarations (CADs) into importer accounts.

Related departmental memoranda

What’s next

Input received through this consultation will inform updates to CBSA policies and may inform future legislative and/or regulatory proposals.

Contact us

If you are a stakeholder that took part in this consultation and have any feedback with respect to this What we Heard report, please email: cbsa.licensing_unit-unite_agrements.asfc@cbsa-asfc.gc.ca

Glossary of terms

Accounting for goods
To provide a report of imported commercial goods under section 32 of the act. We do this to know who is importing the goods, what is being imported, how much is being imported, the value of the goods, the country of origin, and other such information. This all has an impact on how much needs to be charged in duty and taxes.
Business numbers (BN)
15 digits identifying a business's accounts. It is comprised of the business's 9-digit Canada Revenue Agency business number accompanied by the 6-digit alpha-numerical CBSA RM import-export sub-account. The CBSA uses the BN to identify the “importer of record” to process customs documents and for compliance purposes.
Commercial Accounting Declaration (CAD)
A digital customs document used in Canada to declare imported commercial goods to the CBSA.
CARM Client Portal (CCP)
A self-service portal that lets businesses manage their own accounts, assess and pay duties and taxes owed on commercial goods they are importing into Canada and access other online services from the CBSA.
CBSA Assessment and Revenue Management (CARM)
Is an accounting system developed to modernize and streamline the process of importing commercial goods into Canada.
Courier Low-Value Shipment (CLVS) Program
A service offered by the CBSA to help simplify importing low-value goods. The program streamlines the customs processing of shipments valued at $CAN 3,300 or less. It provides the express carrier industry with expedited release. The program was designed for shipments imported by express carriers and is available for commercial and personal use.
Customs brokers
Include CBSA-licenced persons under section 10 of the Customs Act who account for the goods on the importer's or owner's behalf. Customs brokers are a category of authorized agents.
Departmental memoranda
Administrative policy issued by the CBSA. Also known as directives series or D-Memos, they outline the legislation, regulations, policies, and procedures the CBSA uses to administer its programs.
Duties
A duty is a fee charged on imported goods. The meaning is defined in section 2(1) of the Customs Act and includes duties or taxes levied or imposed on imported goods under the Customs Tariff, the Excise Act, , the Excise Tax Act, the Special Import Measures Act or other acts of Parliament.
Financial security
An acceptable form of financial instrument provided by an importer to secure the payment of duties and taxes on imported goods in accordance with Memorandum D1-7-1, Posting Security for Transacting Bonded Operations.
Importer
Usually the person(s) who brings the commercial goods into Canada or causes the goods to be imported into Canada.
Importer of record
The person identified as the importer on customs declaration when goods are accounted for under subsection 32(1), (2), (3) or (5) of the Customs Act. The importer identifies themselves by citing their business number during the CBSA release and accounting processes. The changes to section 17 of the Customs Act make it so an entity that declares itself the commercial importer on accounting documents is the importer of record. They are then jointly and severally liable with the importer and owner of the imported goods for the duties and taxes.
Infrequent importer
Any Canadian business that imports up to 10 shipments a year.
International Events and Convention Services Program
The International Events and Convention Services Program was developed by the federal government to encourage foreign businesses and organizations to hold their conventions, meetings, trade shows, events and exhibitions in Canada.
Jointly and severally liable
Any one entity involved in the importation of the goods into Canada can be made responsible for paying the full amount of duty and taxes to the CBSA. These entities include the importer of record, the importer, the owner, or their agents. This is different from being equally liable where each entity would be responsible for paying their fair share.
Licensed Customs Broker
Is an individual, partnership, or corporation, licensed by the CBSA in accordance with the Customs Broker Licensing Regulations, who acts as agent to transact business with the CBSA on behalf of the importer or owner. While in most cases, any authorized agent can transact business with the CBSA, only a licensed customs broker can account for goods and pay duties and taxes subject to section 32 of the Customs Act, as agent for the importer or owner, unless the person does so on a casual basis without compensation, charge or fee.
Non-Resident Importers
Businesses or individuals located outside of Canada that import commercial goods into the country. They are subject to specific customs regulations and requirements.
Release Prior to Payment
The Release Prior to Payment (RPP) sub-program allows participants to obtain the release of commercial goods from the CBSA before the final accounting and payment of duties and taxes. Importers must post financial security themselves to be able to participate in the RPP program, they can’t use the financial security posted by their customs brokers.
Trade chain partner
Any businesses that help importers get their goods from one country to another. They may include, but are not limited to: freight forwarders, customs brokers, trucking companies, airlines, ships, warehouse and storage facilities, consignees, agents, sub-contractors.

Related information

Page details

Date modified: