Canada’s Import Customs System: CARM
Canada’s Import Customs System: CARM
We provide customs clearance and IOR services through cooperation with Canadian local customs brokers. In addition, through the Canadian NRI program registration agency service, we help Korean corporations act as legal Canadian importers, and we also provide tax services with local certified public accountants.
1. What is CARM?
CARM is a digital system that manages the customs duties and taxes applied to commercial goods imported into Canada.
Through the CARM Client Portal, importers can now handle tasks such as:
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Submitting and managing customs accounting data (CAD)
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Registering and managing RPP (Release Prior to Payment) security
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Reviewing and paying duties and taxes
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Making corrections and adjustments to declarations
Previously handled through customs brokers or logistics companies, these accounting and payment tasks are now centered around the importer.
2. Changes to the RPP Program – Importers Must Register Their Own Security
The RPP (Release Prior to Payment) program allows importers to obtain release of goods before duties and taxes are fully paid.
As of October 21, 2024, customs brokers can no longer post security on behalf of importers. Importers must register their own financial security to benefit from the RPP program.
There are two available methods of security:
1. Written Security Agreement
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Calculated at 50% of the total monthly duties and GST payable (Accounts Receivable).
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Must be issued in Canadian dollars and compliant with CBSA’s approved format.
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Typically issued via import bonds through insurance companies (incurs bonding fees).
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Best for importers with high annual import volume and frequent duty payments.
2. Cash Security Deposit
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Calculated at 100% of the total monthly duties and GST payable.
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Held in cash deposit form, reducing liquidity.
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No bonding costs incurred.
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Best for importers with low volume but stable cash flow.
3. How Security Is Assessed
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If historical import data exists: CBSA calculates based on your average monthly payments via the CARM portal.
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If no historical data: Importers estimate expected monthly liabilities to determine security amount.
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Importers are responsible for ensuring their financial security always covers their monthly liabilities.
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CBSA reviews and updates the required security amount annually, no later than July 24 each year, with notice provided via the CARM portal.
Important Deadline for Transitional Relief
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Deadline: May 20, 2025, at 12:00 a.m. EDT
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Existing importers with a 4-year history of customs activity will automatically be granted transitional relief.
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New importers must register for CARM and enroll in RPP with their own security.
3. Changes to the Import Accounting Reporting Method (CAD)
The traditional B3 (Customs Coding Form) and B2 (Adjustment Request Form) used for paying duty and GST are no longer accepted.
They are now replaced by an electronic declaration called CAD (Commercial Accounting Declaration).
Key Features of CAD:
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Can be submitted via the CARM Portal or through EDI/API integration
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Corrections can be made freely before payment
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Adjustments after payment may result in penalties or interest
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Without a Delegation of Authority, customs brokers cannot file CADs on behalf of importers
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In cases of self-clearance, importers must file CADs themselves and manage their own tax accounting
Trufulfillment currently works with customs brokers to support CAD submission and corrections. Please contact us if you need assistance.
4. New Billing and Payment Cycle
With the introduction of CARM, a harmonized billing cycle applies to all commercial importers in Canada:
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On the 18th of each month, a statement is issued for shipments released between the 18th of the previous month and the 17th of the current month
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Statement of Account (SOA) is issued on the 25th of each month
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The payment due date is 10 business days after the 25th
This billing cycle applies to most commercial importers, including CVS (Courier Low-Value Shipments) and CSA (Customs Self-Assessment) program members.
Practical Example: CARM RPP Financial Security
Case 1: Small-to-Mid Seller – Monthly Average CAD 20,000 in Duties/Taxes
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Highest monthly payable amount in the past 12 months (Accounts Receivable): CAD 20,000 (including GST)
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Required financial security based on CBSA calculation: CAD 20,000
Option 1: Surety Bond
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Required bond amount: 20,000 × 50% = CAD 10,000
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Minimum bond condition: CAD 5,000
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Cost: Requires an annual contract with a bonding/insurance company
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Typical fees range from 1.5% to 3% annually
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Approximate annual cost: CAD 150–300
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Option 2: Cash Security Deposit
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Required deposit: CAD 20,000 (100%)
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Cost: None (but reduces liquidity as funds are tied up in cash)
📌 Tips
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If the business is small but has sufficient cash flow, a cash deposit is simpler and easier to manage.
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If you want to reduce bonding fees and maintain flexibility, a surety bond is more advantageous for frequent importers.
Case 2: Mid-Sized Seller – Monthly Average CAD 80,000 in Import Duties/Taxes
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Highest monthly payable amount over the past 12 months (Accounts Receivable): CAD 80,000 (including GST)
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Required security amount based on CBSA calculation: CAD 80,000
Option 1: Surety Bond
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Required bond amount: 80,000 × 50% = CAD 40,000
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Minimum bond requirement: CAD 40,000
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Cost: Requires an annual bond contract with an insurance company
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Typical annual fee is around 2%
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Estimated cost: ~CAD 800/year
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Option 2: Cash Security Deposit
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Required deposit: CAD 80,000 (100%)
📌 Tip:
At this stage, a cash deposit may place a heavy financial burden, so surety bonds are generally preferred.
Case 3: New Importer – No Import History
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Since there is no import history in the CARM system, CBSA cannot auto-calculate the required amount
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The importer must self-assess and submit an estimated monthly liability
Example: Expected monthly imports of CAD 10,000
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Self-assessed estimated monthly liability: CAD 10,000
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Surety bond: Minimum CAD 5,000 required
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Cash deposit: CAD 10,000 required
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📌 Tip:
If your self-declared estimate is too low, CBSA may request a reassessment.
In Conclusion – Prepare Now
The implementation of CARM is not just a simple system update; it marks a fundamental shift in Canada’s import and customs process.
In particular, preparing for RPP registration and securing financial guarantees is a critical task for all businesses importing into Canada, including Amazon sellers.
At Trufulfillment, we provide practical support across the entire process—from CARM portal registration and RPP bond setup, to CAD filing and EDI integration.
We’re here to help you navigate the complexities of the CARM system, every step of the way.
