What is CARM?
CARM (CBSA Assessment and Revenue Management) is the system used by the Canada Border Services Agency (CBSA) to manage:
Duties and taxes
Import accounts
Payment of import charges
If you are shipping into Canada and acting as the Importer of Record, you are required to be registered in CARM.
Who Needs CARM?
You need CARM if:
You are a U.S. company shipping into Canada via UPS or FedEx
You are acting as the Importer of Record (IOR)
You are paying duties and taxes (DDP or similar models)
You are shipping inventory, B2B orders, or high-value goods
Who Does NOT Need CARM?
You typically do not need CARM if you are using:
These providers:
Use their own importer structure and Canadian registration
Clear shipments on your behalf
Bill duties and taxes back to you
In this case, you are not the Importer of Record and cannot claim these for Duty Drawbacks.
How to Register for CARM
Step 1: Get a Canadian Business Number (CBN)
Before registering in CARM, you must obtain a Canadian Business Number (BN9).
You can apply here: https://www.cbsa-asfc.gc.ca/services/carm-gcra/menu-eng.html
Step 2: Register in the CARM Client Portal (CCP)
You will:
Create a login
Register your business
Link your BN to your account
Step 3: Set Up Your Import Account
Within CARM, you will:
Register as an Importer of Record
Assign access to your team or broker
Set up payment methods
Step 4: Post Financial Security (if required)
For many importers, CBSA requires a financial security deposit to:
Allow goods to clear before duties are paid
Avoid shipment delays
This can be:
A bond
A cash deposit
How Long Does CARM Registration Take?
Step | Timeline |
Canadian Business Number (CBN) | Up to 5 business days |
CARM Portal Registration | Up to 3 business days |
Full setup (including security, broker, access) | Up to to 3 weeks |
Recommendation: Plan for 3-4 weeks before first shipment
Preparing for Implementation
Businesses need to take several steps to prepare for the transition to CARM:
Register for an import/export program account to receive a Non-Resident Importer (NRI) number.
Create an account in the CARM Client Portal (CCP).
Purchase a D120 Customs Bond in order to participate in the Release Prior to Payment (RPP) privilege – this allows you to obtain the release of goods from the CBSA before paying duties and taxes, deferring accounting – or pay duties and taxes on the spot each time a shipment crosses the border.
Authorize your customs broker to access your CARM data. While brokers will still submit customs entries, payment must be made in the client portal.
Reconcile shipments and pay duties and taxes through your CCP account.
Important Considerations
CARM is required for UPS / FedEx shipments into Canada
Without proper setup:
Shipments may be held at customs
Duties cannot be processed
This must be completed before shipping
FAQ
Do I need CARM to ship to Canada?
Only if you are acting as the Importer of Record (typically with UPS or FedEx).
Can I ship to Canada without a CBN or CARM?
Yes, but only if using providers like Landmark or Passport, who act as the importer.
What happens if I ship without CARM?
Shipment may be held or delayed
Carrier will request missing importer information
Clearance cannot be completed properly
Does DDP eliminate the need for CARM?
No - DDP only defines who pays duties. You still need a valid Importer of Record setup (CBN + CARM).
How do I know if I should use UPS or Landmark?
Use Landmark / Passport if:
You do not have/ desire to obtain your own CBN
You are shipping D2C
Lower value shipments
Use UPS / FedEx if:
You have a CBN and CARM
You are scaling into Canada
You are shipping B2B or inventory
Can DCL set this up for me?
No. As a 3PL, DCL does not act as Importer of Record and cannot register on your behalf. We can guide you through the process.
Summary
UPS / FedEx → CARM required
Landmark / Passport → CARM not required
Setup must be completed before shipping