Avoid These 5 CARM Compliance Mistakes

Fix Common CARM Errors Before They Cost You

Introduction to CARM Compliance Challenges

The CBSA Assessment and Revenue Management (CARM) system has introduced a new way to manage imports into Canada. While it improves visibility and efficiency, the process introduces critical steps that companies must follow.

Avoiding errors in the CARM process is key to maintaining operational flow. Even minor oversights can result in shipment delays, penalties, and frustrated customers.

Mistake 1: Not Registering in the CARM Client Portal (CCP)

The first and most common error is failing to register in the CARM Client Portal. Every importer of record (IOR) must complete this step to avoid border clearance delays.

Registration includes creating a Government of Canada login, linking your Business Number (BN9), and assigning a Business Account Manager.

Without this, your company cannot use Release Prior to Payment (RPP) privileges. Shipments may be held until duties and taxes are paid in full.

How to Avoid It: Start registration early, even before you begin shipping. Assign internal ownership for maintaining the CARM account.

Mistake 2: Missing or Incomplete Financial Security

To maintain RPP privileges, importers must post financial security—either via a surety bond or a cash deposit. Many companies assume their broker's bond will suffice.

CARM no longer allows brokers to post security on behalf of the importer.

How to Avoid It: Work with your financial department to secure a bond equal to 50% of your highest monthly accounts receivable (minimum CAD 5,000). Upload this documentation to the CCP.

Mistake 3: Incorrectly Assigning the Importer of Record

Choosing the wrong party to act as the IOR—whether it be the Canadian recipient or a U.S. exporter acting as a Non-Resident Importer (NRI)—can complicate compliance.

The IOR is responsible for CARM registration, financial security, and documentation.

How to Avoid It: For each Canadian shipment, clearly define who will act as IOR. Ensure that the party completes all CARM steps. Use Mercury's checklist to validate this early in your workflow.

Mistake 4: Delays in Delegating Brokers and Carriers

After registering in CARM, importers must authorize brokers and parcel carriers like FedEx or UPS. Without this delegation, shipments cannot be released, even if all other requirements are met.

This step is often overlooked until a shipment is stuck.

How to Avoid It: Immediately assign carrier permissions in the CCP after registration is complete. Mercury can guide you or your suppliers through this process to ensure timely delegation.

Mistake 5: Poor Internal Communication and Ownership

Many compliance breakdowns stem from unclear internal roles and responsibilities. If no one owns CARM registration and updates, important tasks go unfinished.

Operational teams may assume that finance, shipping, or legal teams are handling it.

How to Avoid It: Assign a CARM Compliance Lead within your organization. Provide cross-functional training to ensure visibility across departments.

How Mercury Helps You Focus on What Matters

Mercury takes the burden of CARM off your team’s shoulders. Our system flags every Canada-bound order, verifies the IOR, and confirms their CARM readiness.

If we don’t receive confirmation in one business day, we escalate the issue to you. Mercury’s teams are trained to handle every CARM step, including NRI workflows and portal guidance.

While you focus on R&D, patient delivery, or global scale-up, Mercury ensures your shipments cross borders smoothly.

Conclusion

CARM is no longer optional—it’s essential. By avoiding the most common mistakes, companies can prevent delays, save money, and stay compliant.

Mercury provides the tools, visibility, and expert guidance to help you succeed in this new regulatory environment.

Need help navigating CARM? Contact Mercury today and stay compliant without disrupting your operations.