Canada Customs Bonds

Canada Customs Bonds Explained

The Canada Customs Bond, or 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.

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CARM Customs Bond Requirement

A Canada Customs Bond (form D120) is a surety bond posted for the benefit of the Canada Border Services Agency (CBSA) to guarantee compliance with a law or regulation – essentially to guarantee CBSA will get paid. There are three parties to the bond contract:

  1. The bond principal (such as the importer)
  2. The surety company who provides the bond
  3. The obligee (CBSA)

There are various types of Canada Customs Bonds and all serve a unique purpose for the bond principal. These bonds are designed to cover specific import, trade, and travel activities.

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)

Why Roanoke may be the Bond Provider for You

Our enduring mission is to provide a peerless client experience, while we help to drive supply chain success for the trade and logistics industries. We strive to be more than just your bond provider; we have the know-how and infrastructure to be your partner and a guide to help navigate the entire landscape of surety bond procurement, management, and claims handling.

Our cutting edge, in-house bond platform, FastBondTM provides a streamlined user experience and comprehensive platform to save you time and enable your company’s growth.

Review the below FAQs for everything you need to know about Canada Customs Bonds.

Frequently Asked Questions

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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.


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