Canada Customs Bonds Explained
Release of Goods from the CBSA Prior to Payment of Duties
This bond, often referred to as an RPP bond, is anticipated to be the most comment type of Canada Customs Bond upon CBSA’s enforcement of CARM. The RPP bond allows the importer to obtain release of their goods from the CBSA before paying the applicable duties and taxes, as well as defer accounting for goods.
RPP bonds are written as a continuous bond. A continuous bond is a self-renewing bond that covers all Canada Customs transactions through any port of entry.
Upon the enforcement of CARM Phase 2, the minimum bond amount will be CAN$25,000.
Customs Broker License
In order to become a licensed customs broker in Canada, security must be posted for CAN$50,000. This may be posted in the form of a D120 Canada Customs Bond. The Customs Bond protects CBSA against any financial loss while the customs broker’s license is in effect.
This bond is written as a continuous bond.
When merchandise is temporarily imported into Canada, the merchandise may qualify for full customs duty and tax relief. A Temporary Importation Canada Customs Bond may be posted as security to guarantee the merchandise will be re-exported from Canada.
The bond is written as a continuous bond.
Bonded Highway Carrier
Bonded Highway Carriers are permitted to transport in-bond goods beyond the first point of arrival in Canada and between points in Canada.
The bond is written as a continuous bond, with the bond amount ranging between CAN$5,000-$25,000.
Bonded Marine Carrier
A Bonded Marine Carrier is required to post security to CBSA when unloading merchandise that is not yet released by CBSA and will move past the first point of arrival to another location in Canada. Bonded Marine Carriers must also post security to participate in the Marine Overland Movement Program. The CBSA explains:
“To participate in the Marine Overland Movement Program, where freight is forwarded in bond from a Canadian seaport(s) overland to a Canadian destination(s) for clearance or exportation without re-manifesting to a forwarding rail or highway carrier.”
The bond is written as a continuous bond in the amount of CAN$25,000.
A Customs Bonded Warehouse Bond is required when displaying, marking, labeling, tagging, ticketing, disassembling, reassembling, packing, unpacking, packaging, repackaging, removing goods from the warehouse to solicit orders, inspecting, testing and storing. Customs Bonded Warehouses may consist of private warehouses operated by individuals or companies for the storage of their own in bond goods; or public warehouses operated by entrepreneurs for the storage of goods imported by various importers.
The bond is written as a continuous bond. The bond amount is a calculation of 60% of the maximum amount of duties and taxes that would otherwise be payable at any time in the year following the issuance of the license for the Customs Bonded Warehouse.
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