Navigating the New CARM Program: What Canadian Importers and Businesses Need to Know

Image Source: Freepik | Navigating the New CARM Program: What Canadian Importers and Businesses Need to Know

As of May 20, 2025, the Canada Border Services Agency (CBSA) has fully implemented the Assessment and Revenue Management (CARM) system, marking a significant shift in how commercial goods are imported into Canada. This modernization aims to streamline customs processes, enhance compliance, and improve revenue collection. 

For businesses engaged in importing, understanding and adapting to CARM is crucial to ensure smooth operations and avoid potential disruptions.

What is CARM?

CARM is a comprehensive digital platform developed by the CBSA to manage the assessment and collection of duties and taxes on imported goods. It replaces outdated systems, providing a more efficient and transparent process for importers and trade partners. The system offers a centralized hub for managing import accounts, submitting declarations, making payments, and accessing various customs services.

Key Features of the CARM System

• CARM Client Portal (CCP): A secure online platform where importers can manage their accounts, submit import declarations, track shipments, and make payments.

• Commercial Accounting Declaration (CAD): An electronic form that replaces the traditional B3 customs coding and B2 adjustment request forms, streamlining the process of accounting for imported goods.

• Release Prior to Payment (RPP): A program that allows importers to release goods before paying duties and taxes, improving cash flow and supply chain efficiency.

• Financial Security Requirements: Importers must post their own financial security to participate in RPP, either through a cash deposit or a surety bond.

Transition Period and Deadlines

To facilitate a smooth transition, the CBSA introduced a 180-day grace period following the CARM system's launch on October 21, 2024. This period allowed importers to adapt to the new system and fulfill new requirements. However, as of May 20, 2025, this transition period has ended. Importers who have not registered in the CARM Client Portal or posted the necessary financial security will no longer be able to benefit from RPP and may face delays in releasing their goods.

Steps for Importers to Comply with CARM

• Register for the CARM Client Portal: All importers must create an account in the CCP to manage their customs transactions.

• Obtain a Business Number (BN): A 9-digit BN from the Canada Revenue Agency is required to register in the CARM system.

• Post Financial Security: To participate in RPP, importers must post financial security, either through a cash deposit or a surety bond.

• Delegate Authority: If using a customs broker, importers must delegate authority to their broker through the CCP.

• Submit Commercial Accounting Declarations: Utilize the CAD system to submit and manage import declarations electronically.

Benefits of the CARM System

• Efficiency: Automates and streamlines customs processes, reducing paperwork and processing times.

• Transparency: Provides real-time access to account information, transaction history, and duty/tax assessments.

• Compliance: Enhances the CBSA's ability to monitor and enforce trade regulations, ensuring a level playing field for all importers.

• Cost Savings: By participating in RPP, importers can defer payments, improving cash flow and reducing upfront costs.

Challenges and Considerations

While CARM offers numerous advantages, businesses should be aware of potential challenges:

• System Familiarization: Adapting to the new digital platform may require training and time. crimsonlogic-northamerica.com

• Financial Planning: Posting financial security requires upfront capital, which may impact cash flow. dsv.com+8canada.ca+8canada.ca+8

• Regulatory Compliance: Importers must stay informed about evolving trade regulations and ensure ongoing compliance.

Final Thoughts

The implementation of the CARM system represents a significant modernization of Canada's customs processes. While the transition may present initial challenges, the long-term benefits of efficiency, transparency, and improved compliance are substantial. Importers who proactively engage with the CARM system and fulfill their obligations will be well-positioned to navigate the evolving landscape of international trade.