Top 5 Mistakes Importers Are Making with CARM (And How to Avoid Them)

The CBSA Assessment and Revenue Management (CARM) program is transforming how importers manage duties, taxes, and compliance in Canada. While CARM is designed to modernize and streamline the import process, many businesses are struggling to keep up with the new requirements. 

Failing to comply with CARM doesn’t just risk administrative headaches, it can lead to delayed shipments, financial penalties, and disruptions to your supply chain. 

In this guide, we’ll explore the top 5 mistakes importers are making with CARM, and more importantly, how you can avoid them. 

What Is CARM?

First thing is first, what is CARM exactly? CARM (CBSA Assessment and Revenue Management) is a digital initiative by the Canada Border Services Agency designed to modernize how importers manage duties, taxes, and compliance in Canada.

Through the CARM Client Portal, importers must register, post their own financial security , and directly manage their commercial import accounts. These changes shift key responsibilities from customs brokers to importers, making proper setup, delegation of authority, and ongoing compliance essential to avoid delays and penalties.

Mistake 1: Failing to Register for the CARM Client Portal 

CARM’s new system requires all importers to manage their accounts and transactions through the CARM Client Portal. Yet, many businesses have delayed registration, underestimating its importance. If you’re not registered, you won’t be able to clear shipments once full CARM implementation takes effect. 

How to Avoid It: 

• Register for the CARM Client Portal immediately. 

• Assign a Business Account Manager (BAM) who will be responsible for managing portal access and financial security. 

• Verify that your Business Number (BN) is correctly linked in the system. 

Mistake 2: Not Assigning a Business Account Manager (BAM)

Without a designated BAM, your organization will lack administrative control over its CARM account. This can lead to unauthorized access issues or missed financial obligations. 

How to Avoid It: 

• Assign a senior team member or financial officer as the BAM. 

• Ensure they understand their responsibilities, including managing financial security and delegating access rights appropriately. 

Mistake 3: Overlooking Financial Security Requirements 

Under CARM, importers are responsible for posting their own financial security (through a bond or cash deposit) to participate in Release Prior to Payment (RPP). Many businesses assume their customs broker still handles this, which is no longer the case. 

How to Avoid It: 

• Consult with a licensed customs broker to understand your financial security options. 

• Consider posting a Continuous Surety Bond to avoid having to make individual security deposits for each transaction. 

• Review CBSA guidelines to calculate the appropriate security amount for your import volumes. 

Mistake 4: Failing to Update Internal Processes for CARM Compliance 

CARM isn’t just a new portal, it changes how financial and compliance activities are handled. Relying on old processes can result in missed payments, incorrect filings, and audit risks. 

How to Avoid It: 

• Review and update your internal workflows to ensure timely duty and tax payments through the CARM portal. 

• Train your finance and logistics teams on using the new system. 

• Partner with a customs broker who is experienced in CARM compliance and can guide your business through the transition smoothly. 

Mistake 5: Waiting Until the Last Minute to Prepare for Phase 2 

CARM’s Phase 2 implementation is fast approaching, and importers who wait until the final deadline risk non-compliance. Last-minute registrations and rushed processes often lead to errors and delayed shipments. 

How to Avoid It: 

• Start preparing now. Ensure your portal registration is complete, your BAM is assigned, and your financial security is posted. 

• Perform a readiness assessment with your customs broker to confirm that all compliance requirements are met before the final phase goes live. 

Why a Customs Broker Is More Critical Than Ever Under CARM 

CARM has shifted new responsibilities directly onto importers; from managing financial security to handling complex compliance requirements. For businesses without dedicated trade compliance teams, these changes can be overwhelming. 

A licensed customs broker doesn’t just help with paperwork, they actively reduce your risk of non-compliance, ensure proper financial security is in place, and guide you through every phase of the CARM transition. 

With CARM in full effect, working with an experienced broker isn’t just helpful, it’s a smart risk management decision. 

Still unsure if a broker is the right move for your business? Read our guide on Is It Worth Hiring a Customs Broker? A Business Owner’s Guide for a detailed breakdown of the pros, cons, and cost considerations.  

Final Thoughts: Stay Ahead of CARM to Keep Your Goods Moving 

CARM is a major shift for Canadian importers, but it doesn’t have to disrupt your business. With the right preparation and support, you can avoid costly mistakes and keep your supply chain running smoothly. 

At Hemisphere, we help businesses navigate the complexities of CARM, from portal registration to financial security management. With over 40 years of experience and 24/7 client support, we ensure your imports stay compliant and on schedule. 

Need help with CARM compliance? Contact us today to simplify the process. 

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