How Do I Apply for a Canada Customs Bond?
There are three parties to the bond: the principal (the importer or their business), the surety (the company issuing the bond), and the beneficiary (the Canada Border Services Agency or CBSA). To apply for a Canada Customs Bond, there are two other important parties to the process: the customs broker and the surety agent.
When it comes to obtaining a Canada Customs Bond there are several steps to consider, but the most important is to find a trusted agent for a bond surety who is an authorized representative for the surety. And the best way to build relationship with a surety agent is through a licensed customs broker. The skilled customs broker will help you with the process of applying for a customs bond and will ensure that you apply for the right activity code and bond type.
The bond amount for a continuous RPP bond is calculated at 10% of the taxes, duties, and fees that you estimate will be owed to Canada Border Services Agency on imports planned for the 12 months after the bond takes effect. The minimum amount the continuous bond can be issued for is CAN$25,000. Your customs broker will assist you in determining the correct bond amount.
How to Apply for a Canada Customs Bond
The application process for a Canada Customs bond is not difficult and requires access to the following pertinent information:
- Company Name
- Canada Business Number
- Business type
- Business address
- Years of operation
- Description of import
After the bond application is submitted and approved by the CBSA, you will then be responsible for paying bond premium as part of your contractual obligations as the bond principal.
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