Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Canada’s new $800M customs tool is so glitchy that agents are using the old one

Listen Now
0:00
News

Canada’s new $800M customs tool is so glitchy that agents are using the old one

Two years after the online system launched, CBSA workers are losing 92,000 hours a year on manual workarounds, the federal auditor general found

By Joanna Smith
A head-on shot of Karen Hogan speaking at a press conference. She is seated at a table at the front of the room, and there is a row of Canadian flags behind her.
Karen Hogan, the federal auditor general, reported Thursday that the Canada Border Services Agency’s online system for collecting duties remains woefully inefficient. Photo: The Canadian Press/Patrick Doyle
Oct 29, 2026
A A
A Small A Medium A Large
Share

Gift

Share

Listen Now
0:00

OTTAWA — An $800-million digital system to collect duties on commercial imports has so many problems that customs agents are relying on manual workarounds two years after it launched, including by using the aging technology the new platform was designed to replace.

On Thursday, auditor general Karen Hogan released a long-awaited report into the system that Canadian business groups had warned was not ready for prime time—and that the administration of U.S. President Donald Trump has repeatedly flagged as a trade irritant.

Talking Points

  • A new online system for collecting duties on commercial imports has forced the Canada Border Services Agency to rely on at least 38 manual workarounds, says a report by auditor general Karen Hogan, taking up some 92,000 hours of employee time per year
  • U.S. Trade Representative Jamieson Greer has repeatedly flagged the $800-million system, plagued by a series of outages, as a bilateral trade irritant

The Canada Border Services Agency (CBSA) launched the new tool, called the CBSA Assessment and Revenue Management, or CARM, in October 2024. The agency collected $42 billion in duties and taxes on commercial imports in fiscal 2024-25, which makes it the second-largest source of federal revenue after income taxes. The border agency has said its use in the past of aging software and paper-based systems put that money at risk.

The report found CARM is good at its main job: processing commercial import declarations.

It is also woefully inefficient, the audit concluded, which undermines its intended benefits.

Related Articles

A row of trucks pulling white freight trailers lined up on a bridge. The Canadian and U.S. flags stand on the river shore below the bridge, and the prow of a ship is visible on the right side of the frame.

Canada’s new online customs system is plagued by glitches

By Joanna Smith
A close-up of a U.S. Customs and Border Protection badge on the shoulder of a senior agent.

U.S. ‘trade fraud’ crackdown spells risk for Canadian firms—even if they follow the rules

By Joanna Smith

In order for the tool to work properly, agency employees developed at least 38 manual workarounds. Some relied on the legacy systems that CARM was designed to replace, which meant delaying the plan to take those offline. “The use of workarounds also meant that compliance processes remained inefficient, as compliance officers required information across multiple systems to perform their work,” the audit found. As of June 2026, the auditor general found those stopgaps were taking up about 92,000 hours of employee time per year.

The early rollout was bumpy, including a series of outages that Canadian businesses blamed for administrative headaches and delays. The report said the CBSA has received an average of 19,000 requests for help per month. By June 2026, the backlog had grown to 4,000 unresolved requests. Some took more than 500 days to resolve.

“These issues are expected to continue until upgrades are completed and funding shortfalls are addressed,” said the report. It also noted the CBSA is unable to assess whether the system is providing Canadians with the expected value for money.

Gift the full article

In a response to the report, the CBSA said it plans to phase out the workarounds, which were always meant to be temporary to ensure continuity from one system to the next. It also aims to schedule system-wide maintenance and urgent fixes when they are least likely to disrupt daily trade, noting this method has ensured the system is available to clients “99 per cent of the time.”

U.S. Trade Representative Jamieson Greer targeted the digital system in his last two annual reports on foreign trade barriers. Even importers based outside Canada must now register and provide a security deposit before their shipments can be released, Greer noted. However, that is a feature, not a bug, of the new system. Before, non-resident importers were able to have their goods clear customs while waiting for the bill.

#Canada-U.S. trade #CBSA #economy #National #tariffs #trade

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

A head-on shot of Karen Hogan speaking at a press conference. She is seated at a table at the front of the room, and there is a row of Canadian flags behind her.

Photo: The Canadian Press/Patrick Doyle

Most Popular This Week

A man wearing a headset microphone sits on a stage. He is speaking and gesturing with his hands. The background is dark blue.
News

Ottawa will invest up to $1.6B in Cohere as firm’s valuation hits $35.7B

By Catherine McIntyre
Prime Minister Mark Carney and the rest of the Liberal front bench stand applauding Finance Minister François-Philippe Champagne in the House of Commons. Champagne is in the middle of the frame, with his hands on a desk lectern.
Special Report

What business wants from the 2026 federal budget

By David Reevely, Joanna Smith, Anita Balakrishnan, Claire Brownell, Chaimae Chouiekh, Murad Hemmadi and Meghan Potkins
The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, August 5, 2022. THE CANADIAN PRESS/Nathan Denette
News

An obscure data standard is the latest open banking holdup—and an unlikely political hot potato

By Claire Brownell
A shot across an expanse of low forest of a rocket launching into blue skies.
News

Canada faces a satellite-launch crunch as SpaceX retires its workhorse rocket

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A head-on shot of, from left, Antonio Costa; Mark Carney; and Ursula von der Leyen walking across a deck. All three are wearing poppies, and autumn colours are visible on the trees in the background.
News

Canada and EU announce ‘ever-closer association’ to bolster economic security

By Joanna Smith

Briefing

Canadian investors can’t let foreign capital crowd them out of infrastructure deals, Weston says

By Anita Balakrishnan   |   Oct 30, 2026 | 4:06 PM ET

Cohere outlines plans to spend $4B on R&D and AI infrastructure in Canada

By Catherine McIntyre   |   Oct 30, 2026 | 3:39 PM ET

Binance starts recovering frozen assets following US$6.3B hack

By Claire Brownell   |   Oct 30, 2026 | 3:22 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

RBC’s AI chief sounds the alarm over AI agents

By Chaimae Chouiekh   |   Oct 22, 2026
Analysis

Why a midterm sweep for the Democrats won’t end Canada’s trade nightmare

By Joanna Smith   |   Oct 29, 2026
News

Bank of Canada raises key interest rate amid soaring energy costs

By Kevin Carmichael   |   Oct 28, 2026
Bank of Canada Governor Tiff Macklem in a suit, speaking and gesturing with his right hand.
News

Brookfield’s new CEO flexes the firm’s soft power with its $50B Canadian bet

By Anita Balakrishnan   |   Oct 21, 2026
News

An obscure data standard is the latest open banking holdup—and an unlikely political hot potato

By Claire Brownell   |   Oct 27, 2026
The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, August 5, 2022. THE CANADIAN PRESS/Nathan Denette
Special Report

What business wants from the 2026 federal budget

By David Reevely, Joanna Smith, Anita Balakrishnan, Claire Brownell, Chaimae Chouiekh, Murad Hemmadi and Meghan Potkins   |   Oct 28, 2026
Prime Minister Mark Carney and the rest of the Liberal front bench stand applauding Finance Minister François-Philippe Champagne in the House of Commons. Champagne is in the middle of the frame, with his hands on a desk lectern.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account