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Customs Union Criticizes New Border Services System for Following ArriveCan’s ‘Pattern’ at Rushed Pace


A customs union expresses concerns about a plan by the Canada Border Services Agency to digitize $32 billion in annual tariff collections, comparing it to the problematic ArriveCan application.

In a letter to the House of Commons Trade Committee, the Customs and Immigration Union outlined its worries regarding the implementation of this plan. They stated, “It seems to follow the same pattern established by previous projects, notably ArriveCan, where a rushed system is deployed as a solution to a non-existent problem.”

The Canada Border Services Agency (CBSA) has been working on the Assessment and Revenue Management System (CARM) since 2016. Originally budgeted at $370 million, current estimates suggest it has cost $526 million to date.

The launch of the computer system, initially scheduled for May 13, has been postponed until October. Once operational, CARM will become the official system used by Canada’s trade partners to pay duties and taxes on imported commercial goods.

The union expressed concerns about the lack of sufficient training for front-line border officers, stating that managers with little experience in commercial operations were providing inadequate guidance.

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The union emphasized the need for proper training to avoid costly mistakes that could have significant impacts on schedules, finances, and individuals’ relationships with the Agency.

Furthermore, the union criticized CARM for not being designed for the CBSA, as it is based on an accounting solution initially developed by the Canada Revenue Agency without adequate adjustments for the Agency’s needs.

During a testimony on March 24, CBSA Executive Vice-President Ted Gallivan acknowledged that only 56,000 out of 200,000 Canadian shippers had registered for digitized tariff payments, despite the system being mandatory. He recognized the challenges of transitioning to CARM and the concerns of some in the business community.

The Canadian Association of Importers and Exporters expressed skepticism about the program’s readiness, with past chair Kim Campbell testifying, “We have no confidence in where we are now.”

The ArriveCan application, costing $59.5 million and used for checking COVID-19 vaccination status during the pandemic, has faced scrutiny for its high costs. An auditor general’s report earlier this year highlighted issues with the app’s development process.



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