Understanding CARM Phase 2 Requirements

The Customs Assessment and Revenue Management (CARM) system represents Canada’s most significant customs modernization initiative in decades. Phase 2 introduces mandatory financial security posting, with an April 19, 2025, deadline. Importers must now:

• Calculate appropriate bond amounts based on CBSA’s Risk Assessment Matrix.
• Integrate ERP systems with CARM reporting requirements.
• Implement dual reporting capabilities for goods under multiple trade agreements.
• Train staff on CBSA’s Trusted Trader Portal functionality.
• Companies failing to meet these requirements face severe consequences, including shipment delays, penalty assessments, and potential suspension of import privileges.

Strategic Compliance Planning

Forward-thinking importers are implementing a three-stage approach to CARM compliance:

Assessment: Conduct a comprehensive review of current customs processes, identifying gaps in financial security requirements and reporting capabilities.

Implementation: Develop a phased roadmap addressing immediate compliance needs while building long-term capabilities.

Optimization: Leverage CARM’s digital infrastructure to reduce brokerage fees and streamline customs processes.

Our automotive sector clients have reduced brokerage fees by up to 28% through strategic compliance planning, simultaneously eliminating potential penalties while improving operational efficiency.

Key Deadlines to Remember

• February 26, 2025: You are now in the CARM Phase 2 implementation period
• April 19, 2025: Final deadline for financial security posting
• January 19, 2026: Expiration of late accounting penalty grace period

Next Steps for Importers

• Determine your financial security requirements based on annual import volume.
• Evaluate your current customs broker’s CARM capabilities.
• Implement staff training on CARM Portal functionality.
• Consider a comprehensive CARM readiness assessment.

With proper planning and implementation, CARM Phase 2 can transform from a compliance burden into a strategic advantage, reducing costs and improving supply chain visibility.
Companies implementing blockchain traceability typically follow a three-phase approach:

• Assessment: Evaluate current traceability systems and identify gaps in documentation, verification, and compliance.
• Implementation: Deploy blockchain solutions that integrate with existing systems while ensuring all supply chain partners can participate effectively.
• Optimization: Continuously refine the system to improve data quality, reduce friction points, and maximize compliance benefits.