Canada Border Services Agency (CBSA) executive Ted Gallivan expressed confidence in the upcoming launch of a new digital tariff collection system, but shippers and union representatives immediately raised concerns, warning that the October 21 rollout could lead to confusion and delays.“We are largely there,” said Gallivan, CBSA’s Executive Vice-President, during testimony to the Commons trade committee. “I think we have largely de-risked this as much as we can.”Blacklock's Reporter said the new system, known as the Assessment and Revenue Management System (CARM), is designed to replace paper-based invoicing and tariff collection with a fully digitized process, requiring mandatory registration for roughly 200,000 shippers. Initially set to launch in May, the system was delayed after protests from the shipping industry. The project is now 42% over budget, with costs rising from $370 million to $526 million.While Gallivan acknowledged that tariff collection involved complex coding and tax rules, he remained optimistic about the system’s readiness. He offered examples of how goods like flowers, trees, and even marshmallows require precise tax classifications. “Our approach has been consultative and educational,” he added.However, shippers and union leaders disagreed with Gallivan’s assessment. "This is launching in about four weeks, and we still don’t really know what we are doing," testified Mark Weber, president of the Customs and Immigration Union. “We are not ready.”Weber pointed out that answers to key questions only arrived the day before the hearing. "We have not had any consultation in between whatsoever," he told the committee.Tammy Bilodeau, vice president of UPS Canada, shared similar concerns, stating that only 20% of customers had successfully registered for CARM. "We are going to be dealing with thousands of transactions and thousands of importers in real time," she warned.Renate Jalbert, managing director of Federal Express Canada Ltd., echoed these frustrations, noting that many shippers struggled to register, with some requiring multiple attempts. “There are about 55% of our Canadian importers registered, but less than 30% of U.S. importers,” she said.Despite Gallivan's assurances, opposition MPs served notice of a motion to delay CARM’s implementation until at least April 2025. The motion called for the system to only be launched once stakeholders could provide another update to the Commons trade committee, demonstrating improved readiness and confidence in the rollout.
Canada Border Services Agency (CBSA) executive Ted Gallivan expressed confidence in the upcoming launch of a new digital tariff collection system, but shippers and union representatives immediately raised concerns, warning that the October 21 rollout could lead to confusion and delays.“We are largely there,” said Gallivan, CBSA’s Executive Vice-President, during testimony to the Commons trade committee. “I think we have largely de-risked this as much as we can.”Blacklock's Reporter said the new system, known as the Assessment and Revenue Management System (CARM), is designed to replace paper-based invoicing and tariff collection with a fully digitized process, requiring mandatory registration for roughly 200,000 shippers. Initially set to launch in May, the system was delayed after protests from the shipping industry. The project is now 42% over budget, with costs rising from $370 million to $526 million.While Gallivan acknowledged that tariff collection involved complex coding and tax rules, he remained optimistic about the system’s readiness. He offered examples of how goods like flowers, trees, and even marshmallows require precise tax classifications. “Our approach has been consultative and educational,” he added.However, shippers and union leaders disagreed with Gallivan’s assessment. "This is launching in about four weeks, and we still don’t really know what we are doing," testified Mark Weber, president of the Customs and Immigration Union. “We are not ready.”Weber pointed out that answers to key questions only arrived the day before the hearing. "We have not had any consultation in between whatsoever," he told the committee.Tammy Bilodeau, vice president of UPS Canada, shared similar concerns, stating that only 20% of customers had successfully registered for CARM. "We are going to be dealing with thousands of transactions and thousands of importers in real time," she warned.Renate Jalbert, managing director of Federal Express Canada Ltd., echoed these frustrations, noting that many shippers struggled to register, with some requiring multiple attempts. “There are about 55% of our Canadian importers registered, but less than 30% of U.S. importers,” she said.Despite Gallivan's assurances, opposition MPs served notice of a motion to delay CARM’s implementation until at least April 2025. The motion called for the system to only be launched once stakeholders could provide another update to the Commons trade committee, demonstrating improved readiness and confidence in the rollout.
