Automated Customs Compliance and Duty Assessment for Importers

The CBSA Assessment and Revenue Management (CARM) system is a rules-based automated decision system operated by the Canada Border Services Agency (CBSA). It was created to modernize and simplify how the CBSA assesses and collects duties and taxes on commercial goods imported into Canada — replacing decades-old, paper-based processes with a digital, automated platform. CARM helps protect approximately $40 billion in annual government revenue while making it easier for importers, customs brokers, carriers, and other Trade Chain Partners (TCPs) to meet their legal obligations.

For importers and trade partners, CARM means a single online portal to submit accounting declarations, make payments, enrol in commercial programs, and manage appeals. The system automatically calculates duties and taxes, validates submitted data against legal requirements, and generates lists of potentially non-compliant transactions for review by CBSA officers. Importantly, no shipments are stopped at the border as a result of CARM's automated outputs — all compliance actions follow a post-entry verification model with human officers making final decisions.

Citizens and trade partners should know that CBSA officers review all system-generated outputs before any compliance action is taken, and that recourse mechanisms are available to challenge any assessment. The system uses commercial data (such as tariff classifications, declared values, and business registration information) and is governed by the Customs Act and other federal legislation. Personal information is handled in accordance with the Privacy Act, and an updated Privacy Impact Assessment was approved in April 2024.