FAQs on Customs Bonds and CARM for Commercial Importers Shipping to Canada
Navigating customs compliance and CARM requirements can be complex, but Landmark Global’s expertise makes it simple. We’re here to guide you through the process and take the hassle out of cross-border shipping, so you can focus on growing your business.
Important Note: The referenced bond requirements apply only to commercial importers. If you're not importing goods commercially, you do not need to secure a customs bond.
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CARM (CBSA Assessment and Revenue Management) is the Canada Border Services Agency’s new digital system for managing duties, taxes, and trade compliance. Once fully implemented, CARM will simplify the overall importing process by:
- providing a modern interface for importing into Canada
- giving importers self-service access to their information
- improving consistency of compliance with trade rules
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A customs bond guarantees the CBSA receives duties and taxes owed by an importer. It’s a critical financial safeguard that allows goods to clear customs smoothly, avoiding delays or disruptions in your supply chain.
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Commercial importers using the Release Prior to Payment (RPP) program must have a customs bond. The RPP program allows goods to enter Canada before duties and taxes are paid, streamlining the import process.
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As of October 21, 2024, the CBSA requires all commercial importers to meet the new financial security requirements under the Release Prior to Payment (RPP) program.
If you’re an existing importer with a CARM Client Portal (CCP) account or a history of importing commercial goods into Canada, you are now within the 180-day transition period to finalize your own financial security arrangements. New importers without a history of commercial importing can still enroll in the RPP program by:
- Registering in the CARM Client Portal.
- Selecting the “lower than recommended amount” option during enrollment to generate a case for CBSA review.
Landmark Global can assist you in navigating this transition and ensuring you meet all compliance requirements.
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CARM requires importers to secure their own bonds. Here are the options:
1. D120 Bond
- A bond purchased through a surety provider and registered in your CARM Client Portal.
- It must equal 50% of your highest monthly accounts receivable with
- CBSA in the last 12 months (minimum $5,000).
2. Cash Bond
- A direct deposit to CBSA equal to 100% of your highest monthly accounts receivable.
The D120 bond is often the preferred option for businesses. Landmark Global is here to offer guidance and can even handle the process for you.
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Previously, commercial importers could rely on their customs broker’s bond to participate in the RPP program. Under CARM, this is no longer an option. Businesses now need their own bond to comply with CBSA requirements.
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Obtaining a D120 bond involves two steps:
- Apply for a bond through a surety provider.
- Register the bond in your CARM Client Portal.
Don’t want to manage this yourself? Landmark Global’s trade services specialists can handle the entire process for you, ensuring full compliance with CBSA.
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Without a bond, you cannot participate in the RPP program. This means paying duties and taxes upfront for every shipment—a costly and time-consuming approach that could hinder your business’s growth.
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CARM shifts responsibility for compliance, payments, and account management directly to importers. While this increases visibility and = control, it also requires careful attention to detail.
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As experts in trade services, we can help businesses navigate CARM and customs requirements with ease. From securing the right bonds to managing compliance, we simplify the process and keep your shipments moving smoothly.
Contact us today to let us take the hassle out of cross-border shipping!
