Importing to Canada Under CARM: Everything Businesses Must Prepare For

On October 21, 2024, the Canada Border Services Agency (CBSA) officially launched the CBSA Assessment and Revenue Management (CARM) system. This marks one of the biggest shifts in how commercial imports are processed, documented, and paid for in Canada.

For businesses importing goods into Canada, adapting to CARM is not optional. This article explains what CARM is, how it works, and—most importantly—what steps importers must take to stay compliant and avoid costly delays.

1. What is CARM, and why does it matter

CARM is a digital platform that modernizes the way CBSA collects duties and taxes on imported goods. It replaces legacy systems like CADEX and CCS, aiming to:

Improve transparency by giving importers visibility into their accounts.

Streamline customs clearance with digital documentation.

Transfer liability for duties and taxes directly to importers, not customs brokers.

According to CBSA, CARM will handle nearly $40 billion in annual revenue from duties and taxes, making it central to Canada’s trade environment (CBSA).

2. Key Requirements for Importers Under CARM

a) Register on the CARM Client Portal (CCP)

All importers must register through the CARM Client Portal (CCP) using their:

• Business Number (BN)
• Import-Export program account (RM)

Without registration, you cannot legally import goods. CBSA recommends completing this process as early as possible (Government of Canada).

b) Liability Shift – Importer of Record

Previously, customs brokers could assume financial responsibility using their broker bonds. Under CARM, the Importer of Record is fully responsible for all duties and taxes. Brokers may still assist, but financial security (bonds, deposits) must be in the importer’s name.

c) Documentation and Reporting

Every shipment now requires:

• Accurate product classification (HS codes)
• Correct valuation for duties.
• Digital submission via CCP.
• Errors can trigger penalties or clearance delays.

3. Benefits of CARM for Businesses

Despite early challenges, CARM offers significant long-term advantages:

• 24/7 Online Access to duties, taxes, and compliance history.
• Simplified Processes compared to paper-driven systems.
• Transparency through real-time account statements and notifications.
• Faster Dispute Resolution with online adjustments and correction requests.

For proactive businesses, these tools can reduce clearance costs and improve compliance accuracy.

4. Common Challenges Importers Are Facing

Feedback from businesses shows that not all transitions have been smooth:

Portal registration issues: “Clients are struggling with CARM portal registration because of the convoluted process and busy CBSA support lines.” (Reddit – Customs Broker Community)

Error codes like EC-1029 caused mismatches between CBSA data and business records.

Financial burdens as importers now need their security bonds.

These challenges highlight the need for preparation and possibly professional customs broker assistance.

5. How to Prepare Your Business for CARM

1. Register now on the CARM Client Portal.
2. Verify your account data to avoid portal mismatches.
3. Secure financial liability through a bond or deposit in your name.
4. Review your HS codes and valuation methods to ensure compliance.
5. Leverage a customs broker to manage complex entries and reduce risks.
6. Educate your team on CCP usage and reporting requirements.

Conclusion

CARM has fundamentally changed how Canada manages imports. While it introduces new compliance burdens, it also provides digital tools that make trade more transparent and manageable.

Businesses that prepare early—by registering, securing financial responsibility, and updating their compliance processes—will not only stay ahead of regulations but also gain a competitive advantage in efficiency and trust.

If your business is struggling with CARM registration or clearance, partnering with an online customs broker can help you adapt quickly and minimize risks.

FAQ Section

Q1: What is the deadline to register in the CARM Client Portal?

Registration is mandatory for all importers as of October 21, 2024. Without it, you cannot legally import goods into Canada.

Q2: Can my customs broker still pay duties on my behalf under CARM?

No. Under CARM, only the Importer of Record is financially responsible. Brokers can assist with filing, but cannot assume liability.

Q3: What happens if I don’t register in CARM?

Your shipments may be delayed or rejected at the border, and you could face penalties.

Q4: Does CARM increase costs for importers?

Yes, since importers must now secure their financial bonds. However, the system may reduce administrative costs in the long run.