CARM Release 2 – $10M Cap clarification
The maximum bond amount of $10M applies to each surety bond secured for each of the RM (BN15) accounts associated with the BN9 business account.
For example, if a legal entity (BN9) with 5 associated RM accounts currently holds a single bond for $10M covering the total accounts payable across all 5 RM(BN15) accounts, where each individual RM account has an accounts payable in excess of $10M, they can either post 5 individual $10M bonds (one bond per RM (BN15) account) OR they can post one bond for $50M and allocate coverage across all 5 RM accounts. The automatic monitoring of the bond utilization is set at the RM level in CARM.
Please note that a surety customs bond can only be shared within a specific program account. For example, an importer with multiple Import RMs can use the same bond to secure all Import RMs, but the same bond cannot also be used to secure a Carrier RM or Customs Broker RM that also falls under the same BN9.
Please consult the CSCB Road to CARM available on our website for more information or contact mbedard@cscb.ca
Source: Canadian Society of Customs Brokers (CSCB)
View Farrow’s CARM page for the latest CARM information along with a wide selection of CARM resources.
