FAQ's

How Do Release of Payment (RPP) Bonds Work?

The RPP Bond is a requirement that stems from CARM, the multi-year initiative implemented by Canada Border Services Agency  (CBSA). CARM stands for CBSA Assessment and Revenue Management and is intended to modernize and streamline the process of imports into Canada.

Under CARM, importers will need to secure and post their own import bond in order to participate in the Release Prior to Payment Privilege (RPP). This is a significant change that impacts importers and customs brokers. Prior to CARM, customs brokers were allowed to extend use of their own customs bond to any importer.

CARM Customs Bond Requirement Details

CARM Phase 0  went into effect in January of 2021. Release 1 is scheduled to launch Spring 2021 and Release 2 in the Spring of 2022.

As of Release 2, an importer must post security using one of the following two options to be eligible for RPP:

  • A surety bond for 50% of their highest monthly accounts receivable with a minimum bond of $25,000
  • – OR – a cash security for 100% of their highest monthly accounts receivable

The RPP Bond will allow the importer to:

  • Obtain the release of goods from the CBSA before paying duties and taxes
  • Defer accounting for goods
  • Defer payment of duties and taxes (including GST)

There are three parties involved in the contract of an Import Bond:

Principal – the party that must post the bond in order to do business with CBSA, such as an importer.

Surety – the party that guarantees the principal on the bond. The surety is a company that has been pre-approved by the Department of Treasury to write bonds up to a specific limit. By writing the bond, the surety agrees to pay amounts due to CBSA if the principal fails to do so.

Obligee – the beneficiary of the contract CBSA.

Our Latest Articles


What is the Better Recovery Option – Carrier’s Legal Liability or Cargo Insurance?

As featured in 3PL Perspectives Magazine in October 2023 Shippers must understand the differences in recovery options and choose the best and most cost-effective method to safeguard their financial interests. Property brokers and forwarders can assist customers by providing insightful guidance on these commonly misunderstood options. Rules of the Road – Interstate Shipments Since 1906, […]

Roanoke Appoints a New Regional Vice President and Head of Sales

Roanoke has appointed two key leaders to new roles, effective November 1, 2023. Please join us in congratulating Patrice Lafayette for accepting the position of Regional Vice President, Western Region, and Grant Goldsmith, who has accepted a position as Head of Sales. Patrice has been a steadfast leader of Roanoke’s Western Region for more than […]

Clearing the Hurdles: How to Successfully Navigate Project Cargo Risks

Written by Andrew Johnson & featured in the American Journal of Transportation Imagine you have spent six months planning and bidding the transportation of a large piece of equipment. The shipment travels from origin to port and is loaded onto an awaiting vessel for the ocean voyage to the destination port. The equipment is offloaded […]

Sign up for our latest articles and events.

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2021 Roanoke Insurance Group Inc. A Munich Re company

Better Business Bureau logoCoverholder at Lloyd's logo