What Every Canadian Boutique Needs to Know About Importing Fashion in the New CARM Era
International fashion shipments entering Canada now pass through the new CARM system, changing how duties and taxes are managed for retailers and suppliers.
Introduction
Canada has introduced a new system that affects every business importing commercial goods into the country. The system is called CARM — CBSA Assessment and Revenue Management, and it modernizes how duties and taxes are managed for imported goods.
For boutique retailers who purchase collections from international suppliers—whether from Italy, France, Turkey, India, or the United States, the change has raised understandable questions. Many retailers are asking whether they now need to deal directly with customs procedures, government portals, or additional administrative requirements.
The good news is that with the correct structure in place, retailers can continue receiving international merchandise just as they always have, without taking on the responsibilities of an importer.
This guide explains how the system works and how retailers can ensure their shipments arrive smoothly.
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What Is CARM?
CARM stands for CBSA Assessment and Revenue Management, a digital platform introduced by the Canada Border Services Agency (CBSA).
The purpose of the system is to modernize how duties and taxes are assessed, collected, and managed for goods entering Canada.
Under this system, the Importer of Record must now manage their account directly with the government through the CARM Client Portal.
This importer is responsible for:
• accounting for imported goods
• paying duties and taxes
• maintaining financial security with CBSA
• ensuring compliance with Canadian import regulations
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Why This Matters to Retailers
Many boutiques purchase products from international brands but do not consider themselves importers.
However, if a retailer is listed as the Importer of Record, the store may be required to:
• register in the CARM Client Portal
• have a Canadian Business Number import account
• post a financial security bond
• manage duties and tax payments directly with CBSA
For many small businesses, this is an unnecessary administrative burden.
Fortunately, retailers can avoid this situation entirely when shipments are structured properly.
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The Simplest Solution: Delivered Duty Paid (DDP)
The easiest method for retailers is when the supplier ships merchandise using Delivered Duty Paid (DDP) terms.
Under this arrangement:
• the supplier acts as the importer
• duties and taxes are paid before the goods reach Canada
• the supplier’s customs broker manages the CARM process
• the retailer simply receives the shipment
From the boutique’s perspective, the delivery works much like receiving a domestic shipment.
This is the preferred structure for most international fashion brands selling into Canada.
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Understanding the Non-Resident Importer (NRI)
Many international brands manage Canadian imports through a structure known as a Non-Resident Importer (NRI).
In this model, the manufacturer located outside Canada registers as an importer with the Canadian government.
Once registered, the supplier can:
• pay Canadian duties and taxes directly
• work with Canadian customs brokers
• ship directly to Canadian retailers
• manage CARM responsibilities on behalf of the shipment
Retailers are therefore not responsible for the import process.
This approach is widely used by European and American fashion brands selling into Canada.
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Another Option: Canadian Distribution
Some brands prefer to import goods into Canada first and then ship them domestically.
The process works like this:
1. The supplier imports the merchandise into Canada.
2. Customs clearance happens once at the border.
3. Orders are shipped to retailers from within Canada.
This structure eliminates customs involvement for retailers and can simplify returns and logistics.
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Questions Retailers Should Ask International Suppliers
When ordering merchandise from overseas brands, retailers should confirm the following details to ensure shipments remain straightforward.
1. Who is the Importer of Record?
Ideally, the supplier should assume this role.
2. Are shipments sent Delivered Duty Paid (DDP)?
This ensures duties and taxes are handled before delivery.
3. Does the supplier work with a Canadian customs broker?
An experienced broker ensures compliance with CARM requirements.
These simple questions can prevent delays and confusion at the border.
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Potential Risks to Avoid
Retailers should be cautious about shipments where they are asked to act as the importer of record.
Doing so may require the retailer to:
• register in the CARM system
• provide financial security
• manage duties and tax payments
• deal directly with CBSA administration
For many boutique businesses, this adds unnecessary complexity.
Whenever possible, retailers should work with suppliers who structure shipments to keep the process simple.
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How Grimwood Agencies Supports Retailers
At Grimwood Agencies, we understand that boutique owners want their international orders to arrive smoothly without additional administrative work.
We work closely with our international partners to ensure that shipments entering Canada are structured properly so that retailers can focus on running their businesses rather than managing customs procedures.
Our goal is to ensure that retailers receive their merchandise efficiently while maintaining compliance with Canada’s evolving import regulations.
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Final Thoughts
The introduction of CARM represents an important modernization of Canada’s import system. While the new platform changes how duties and taxes are administered, it does not need to complicate the ordering process for retailers.
With proper shipping structures and experienced partners, boutiques can continue ordering international collections with confidence.
By ensuring that suppliers manage the import responsibilities, retailers can simply receive their merchandise and continue offering unique global fashion to their customers.