CARM stands for the CBSA Assessment and Revenue Management system. It’s a digital initiative launched by the Canada Border Services Agency (CBSA) to streamline how duties and taxes are assessed and paid for goods imported into Canada.
While the program began rolling out in phases several years ago, October 21, 2024, is when CARM became mandatory for all importers of record, including U.S. businesses shipping goods into Canada. And, as of May 20, 2025, companies must also post their financial security within the system for CBSA to continue releasing shipments.
Why CARM Matters
This isn’t just a policy tweak. CARM transforms how importers:
- Track duties and taxes
- Make payments
- Communicate with CBSA
- Understand their financial obligations
CARM replaces outdated, manual systems and is now the central platform for managing commercial imports into Canada.
Why CARM is Gaining Momentum in 2025
Recent trade shifts and rising tariffs, particularly on U.S. imports, are driving many companies to reassess their trade strategies. As new duties take effect, some businesses are facing millions in unexpected import costs, especially on industrial materials such as steel, aluminum and electronics components
In response, more companies are exploring Canada as an alternative distribution base. Some are diverting shipments north of the border, where duties may be lower, while other are leveraging Canada’s Non-Resident Importer (NRI) program to reach Canadian customers directly.
In this environment, the CARM system has become increasingly relevant. It simplifies the import process for compliant importers and provides greater visibility and control over duties and taxes. For businesses adapting to global trade volatility, being properly registered in CARM can ensure smooth operations in this fast-changing landscape.
Important Dates to Know
October 21, 2024: CARM became mandatory for all importers of record.
May 20, 2025: Importers must post their financial security in the CARM Client Portal to avoid clearance delays. This can be done through a surety bond or a cash deposit, depending on the business’s needs. Without it, shipments will not be released by CBSA.
Who Needs to Register?
Anyone importing goods commercially into Canada, including:
- Canadian resident businesses
- Non-resident importers (NRIs), such as U.S companies acting as the importer of record)
- Customs brokers, freight forwarders, bonded warehouses
How to Register in the CARM Portal
To get started, you will need:
-
- A Canada Revenue Agency (CRA) 9-digit business number (BN)
- An RM (Import/Export Program) account number.
- A business user profile on the CARM Client Portal (CCP).
- The authority to delegate account access to brokers or service providers.
Once registered in the CARM Client Portal, importers gain access to tools that simplify compliance. They can view their Statement of Account (SOA), pay duties and taxes electronically, submit corrections or adjustments to previous declarations, and monitor all financial transactions with CBSA in real time.
To make the process easier, importers can also follow the CBSA’s step-by-step registration guide and explore CBSA’s user guides, which provide documentation about the portal’s onboarding process and its functionalities.
What Happens if you Don’t Register?
If you’re not registered and haven’t posted the required financial security by the deadline, your cargo WILL NOT BE CLEARED at the border.
While using older systems may feel familiar, transitioning to the new CARM Client Portal is ultimately a smarter move for long-term compliance, transparency, and operational control.
What Does this Mean for U.S Importers?
If you’re a U.S.-based company shipping into Canada, you are now responsible for CARM registration, even if you work with a customs broker. You’ll need to register as a Non-Resident Importer (NRI) and delegate authority to your broker within the CARM Client Portal.
For cross-border businesses, this shift is significant. It places greater accountability on U.S. importers to actively manage compliance, particularly as trade policies and tariff rules between the U.S. and Canada remain fluid. While CARM itself does not determine tariff rates, it provides the digital infrastructure to manage duties, taxes, and surcharges efficiently.
Being registered ensures your business can respond quickly to any future changes in trade regulations, helping you maintain continuity and control across your North American supply chain.
How do CARM’s Financial Security Requirements Compare to U.S Customs Bonds?
For U.S. businesses already familiar with Customs Bonds, it’s important to understand how Canada’s CARM financial security model differs from what’s typically required by U.S. Customs and Border Protection (USCBP). While both systems are designed to guarantee that duties and taxes are paid, CARM takes a more structured and upfront approach.
| Feature | CARM Financial Security (Canada) | U.S. Customs Bond |
|---|---|---|
| Purpose | Ensure duties & taxes will be paid to CBSA | Ensure duties, taxes & fees will be paid by USCBP (U.S. Customs and Border Protection) |
| When Required | Mandatory by 5/20/2025 for all importers under CARM | Required when importing goods over $2,500 or regulated items |
| Payment Guarantee | Equal to 50% of the highest monthly accounts receivable amount with CBSA | Minimum $50,000, or 10% of annual duties/taxes paid |
| Term/Duration | Annual (must be renewed yearly) | Typically, annual continuous bonds, renewable or single-entry |
| Who Posts it | The importer (including Non-Resident Importers) | The importer (broker can assist) |
| Form Type | Financial Security Instrument (e.g., surety bond, cash deposit) | Customs Surety Bond |
| Enforced By | CBSA | CBP |
| System Monitoring | Tracked via CARM Client Portal (CCP) | Not publicly tracked; CBP if bond is insufficient |
In addition to using a surety bond, CARM also allows importers to post financial security through a cash deposit. This is especially beneficial for NRIs or small-volume shippers with low or infrequent duties. For example, it may be more cost-effective to deposit $100 in CARM than to pay $500 or more annually for a surety bond when the amounts due are minimal.
What this Means for Importers
Canada’s CARM model takes a more rigorous approach to financial security. It requires importers to guarantee payment through a deposit equal to 50% of their highest monthly duties and taxes, a threshold that is often significantly higher than the 10% baseline used in the U.S. system. In contrast, U.S. Customs Bonds offer more flexibility, allowing importers to choose between Single Entry and Continuous Bonds. These bonds are typically easier to set up, often handled by customs brokers, and involve fewer upfront requirements.
Simplify Your Path to CARM Compliance
Navigating the shift to CARM can feel overwhelming, especially for small to mid-sized businesses new to importing into Canada. Understanding how to register, manage financial security, delegate access and make sure of proper documentation requires more than just good intentions; it calls for expert guidance.
Since 1990, the Dimerco Canada team has been helping importers streamline shipments into Canada’s key gateways, including Toronto, Vancouver, and Montreal. If you’re unsure where to begin, speak with a Dimerco specialist to clarify your next steps and start moving in the right direction.
For businesses looking to move forward on CARM compliance in Canada, Dimerco offers the expertise and hands-on support needed to make the smooth transition without the jargon, confusion, or compliance risks.
Helpful Resources
For more detailed guidance on tariff planning and classification, you can explore the CBSA’s official Canada Customs Tariff Schedule for 2025.
Need help managing complex shipping requirements? Download our Global Shipping 101 guide for practical tips to simplify international air and ocean freight and ensure smoother trade compliance.
