CARM, Surety Bonds and Posting Security: What You Need to Know Update.CARM and Importer Security Bonds
One of the biggest changes introduced by the Canada Border Services Agency (CBSA) Assessment And Revenue Management (CARM) is the need for importers to provide their own financial security in order to enjoy Release Prior To Payment Privileges (RPP).
RPP allows goods to be released into Canada before the duties and taxes have been paid to CBSA. This security protects CBSA from any losses if the importer fails to remit their outstanding payables after the goods enter Canada. RPP also allows importers to defer final accounting of their goods until after release.
Until now, importers were able to use their customs broker’s bonds for security, but the transition period ends on May 20th, 2025.
Under CARM, for an importer to continue using Release Prior To Payment Privileges to defer the payment of duties and taxes until after their goods are released, the importer will need to post their own security with CBSA.
How to Post Security
Importers have two options to post their own security with CBSA:
• A cash bond
• A continual Surety Bond
A cash bond is posted online through the CARM Client Portal. The value of the cash bond must be equal to the highest monthly amount that the importer owed to the CBSA out of the last twelve months. This might be a good option for infrequent or low value importers.
A continual surety bond is obtained from a surety company. The value of a continual surety bond must be equal to 50% of the importer’s highest monthly amount owed to CBSA over the past twelve months. The minimum required amount for a continual surety bond is $5,000; the maximum is $10,000,000.
How to Determine Your Security Amount
First, log on to your CARM client portal to determine your financial security requirement. You can find this information on your CARM Home Page. Scroll to Financial Information then choose Financial Security.
If you plan to post a cash bond, your bond amount will be equal to your highest monthly payables. You can post this security directly through the CARM Client Portal.
If you plan to use a continual surety bond, you can contact your customs broker and request they obtain a bond on your behalf.
CBSA D Memo D17-1-8 outlines the process of applying for a surety bond in more detail.
If you have questions, please contact us.
CARM and Importer Security Bonds
One of the biggest changes introduced by the Canada Border Services Agency (CBSA) Assessment And Revenue Management (CARM) is the need for importers to provide their own financial security in order to enjoy Release Prior To Payment Privileges (RPP).
RPP allows goods to be released into Canada before the duties and taxes have been paid to CBSA. This security protects CBSA from any losses if the importer fails to remit their outstanding payables after the goods enter Canada. RPP also allows importers to defer final accounting of their goods until after release.
Until now, importers were able to use their customs broker’s bonds for security, but the transition period ends on May 20th, 2025.
Under CARM, for an importer to continue using Release Prior To Payment Privileges to defer the payment of duties and taxes until after their goods are released, the importer will need to post their own security with CBSA.
How to Post Security
Importers have two options to post their own security with CBSA:
• A cash bond
• A continual Surety Bond
A cash bond is posted online through the CARM Client Portal. The value of the cash bond must be equal to the highest monthly amount that the importer owed to the CBSA out of the last twelve months. This might be a good option for infrequent or low value importers.
A continual surety bond is obtained from a surety company. The value of a continual surety bond must be equal to 50% of the importer’s highest monthly amount owed to CBSA over the past twelve months. The minimum required amount for a continual surety bond is $5,000; the maximum is $10,000,000.
How to Determine Your Security Amount
First, log on to your CARM client portal to determine your financial security requirement. You can find this information on your CARM Home Page. Scroll to Financial Information then choose Financial Security.
If you plan to post a cash bond, your bond amount will be equal to your highest monthly payables. You can post this security directly through the CARM Client Portal.
If you plan to use a continual surety bond, you can contact your customs broker and request they obtain a bond on your behalf.
CBSA D Memo D17-1-8 outlines the process of applying for a surety bond in more detail.
If you have questions, please contact us.
