CBSA/CARM - RPP Bonds

The Canadian Border Services Agency (CBSA) has implemented a new process for the collection of duties and taxes for commercial goods imported into Canada.

On October 21, 2024, the CBSA’s Assessment and Revenue Management (CARM) Client Portal became the official system of record for imposing or levying duties and taxes. CARM is a self-service tool that facilitates accounting and revenue management processes with the CBSA. The portal enables importers, and their customs brokers and/or trade consultants, to view their transactions and statements of account, classify goods and estimate duties and taxes.

CARM also includes electronic commercial accounting declarations with the ability for corrections and adjustments, as well as the mandatory requirement for importers to provide direct financial security to participate in the Release Prior to Payment (RPP) Program.

The RPP Program allows participants to obtain the release of goods from the CBSA before the final accounting and payment of duties and taxes. Importers are now required to post financial security themselves as they can no longer use the financial security which may have previously been arranged by their customs brokers.

As outlined on the CBSA’s website HERE, there are 2 posting options:

• Written security agreement (i.e., customs/surety bond): set at 50% of their highest monthly accounts receivable (inclusive of GST) with a minimum financial security of $5,000 per import program (RM);
• Cash security deposit (i.e., credit card): set at 100% of their highest monthly accounts receivable (inclusive of GST).

How to Get a Bond

Most companies that issue surety bonds work through Insurance Brokers, also called producers. An importers’ first step to obtaining a customs bond would be to contact a Surety Broker as they specialize in surety bonding for commercial security and would be best qualified to assist with obtaining a bond.

A Surety Broker’s role is to guide importers through the bonding process and to assist with establishing a business relationship with a Surety company. Some of the items that may be requested from an importer to provide to a Surety Broker can be found on this checklist HERE (downloadable PDF). Note that this is not a comprehensive list and should be used as guidance only.

To find a Surety Broker, importers can access the Surety Association of Canada’s on-line Surety Broker directory HERE.

Information Webinar

To assist importers in gaining a better understanding of what is a Release Prior to Payment bond and the steps on how to directly obtain one, the Surety Association of Canada presented a webinar titled: An Introduction to Obtaining Release Prior to Payment/Customs Bonds.

The webinar session covered the following topics:

• CBSA Legislative changes & CARM Overview
• What is a customs bond and the legislative authorities that are accepted in CARM
• What, specifically, is an RPP bond and the requirement for importers to obtain direct financial security
• How to get an RPP bond and the process to transmit the information into CARM
• What happens in the event of a claim against the bond

Please note that the session was held in English only.

CLICK HERE to view the recording.

CLICK HERE to download the presentation (PDF).

Other Resources

The CBSA has created several User Guides on specific RPP-relation functions in CARM, such as:

• How to post financial security for RPP
• How to view your RPP financial security information
• How to enroll in a CBSA sub-program, including the RPP Program

These User Guides can be accessed HERE.