By Cadys Wang    Photo：CANVA

What is CARM?

CARM is a digital platform developed by CBSA to streamline the management of duties, taxes, and import accounting. It replaces traditional manual processes with a centralized online system, ensuring greater transparency and efficiency.

Why Does It Matter?

CARM is now the official system for import accounting in Canada. Any company importing goods into the country is required to register in the CARM Client Portal (CCP). From there, importers can:

• View and manage transactions
• Request rulings
• Pay invoices and reconcile duties and taxes directly with CBSA

Starting April 19, 2025, posting financial security will become mandatory for importers to obtain customs release. Until then, a grace period is in place.

How Does CARM Work in Practice?

Let’s consider a real-world scenario:

A shipment of goods is being exported from Shanghai, China to Vancouver, Canada under DDP (Delivery Duty Paid) terms. Under CARM, two possible pathways apply:

Option 1 – Canadian Importer of Record (IOR)

• The Canadian buyer registers on the CARM Portal.
• Financial security must be posted (mandatory after April 19, 2025).
• Goods are cleared under the IOR’s account once they arrive in Vancouver.
• The declared value must reflect the Canadian import value.
• Duties and taxes are reconciled and paid directly by the IOR through the CARM Portal.

Option 2 – Non-Resident Importer (NRI, Seller in Shanghai)

• The Shanghai exporter opens a Non-Resident Importer account and registers on the CARM Portal.
• Financial security must be posted (mandatory after April 19, 2025).
• Goods are cleared under the NRI’s account.
• The declared value must reflect the Canadian import value.
• Duties and taxes are reconciled and paid directly by the NRI through the CARM Portal.
• Importantly, liability may still extend to the goods’ ultimate owner in Canada.

Key Takeaways for Importers and Exporters

• Registration is critical: Whether you’re a Canadian company or a foreign exporter acting as an NRI, you must register in the CARM Client Portal.
• Financial security requirements are changing: Use the current grace period wisely, as full compliance will be enforced starting April 19, 2025.
• DDP requires clarity: Decide early whether the Canadian buyer (IOR) or the foreign seller (NRI) will handle customs responsibilities under CARM.
• Transparency and accountability are increasing: Duties and taxes will be reconciled directly between the importer and CBSA, reducing reliance on third-party intermediaries.

Final Thoughts

CARM represents a significant shift in how Canada manages import compliance. For businesses shipping to Canada, proactive preparation is key. Whether you’re the importer in Canada or a non-resident exporter abroad, registering for CARM and understanding your responsibilities will ensure smoother trade flows and avoid costly delays.

As trade continues to evolve, staying ahead of customs reforms like CARM will give businesses a competitive edge in navigating global supply chains.

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