Importer / Custom Bonds
For CBSA’s CARM Requirements
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Phase 1: Understanding the New Reality of Importing into Canada
Before starting the process, it is essential to grasp the fundamental changes CARM has introduced.
1.1 What is the CARM Initiative?
CARM (CBSA Assessment and Revenue Management) is the Canada Border Services Agency’s project to modernize how duties and taxes are managed for imported goods. The centerpiece is the CARM Client Portal (CCP), a mandatory online platform that is now the official system for all import-related financial transactions with the CBSA. Registration and active use of the portal are non-negotiable for commercial importers.
1.2 The Importance of Release Prior to Payment (RPP) Privileges
The RPP program is a privilege granted by the CBSA that allows compliant importers to have their goods released from customs *before* paying the duties and taxes. This allows you to defer payment until a consolidated monthly due date, which is critical for maintaining cash flow and avoiding costly delays at the border. Without RPP, you must pay on the spot for every shipment, disrupting your entire supply chain.
1.3 The Liability Shift: Why You Need Your Own Bond
This is the most critical change under CARM: The financial liability for duties and taxes has shifted directly to you, the importer. Previously, you could use your customs broker’s security. That is no longer possible. To qualify for RPP, you must now post your own financial security—typically a CBSA Import Bond—directly with the government under your own business account.
Phase 2: Prerequisites for Getting Your Import Bond
Before you can apply for a bond, your business must be properly set up with the Government of Canada.
Get Your Business Number (BN9)
Your foundation is the 9-digit Business Number from the CRA. If you don’t have one, you must register through the CRA’s BRO service.
Register for an RM Account (BN15)
Your BN9 needs an import-export (RM) account, creating your 15-character BN15. This is your unique customs identifier and is now done exclusively through the CARM Client Portal.
Register on the CARM Portal (CCP)
Your business must be registered on the CARM Client Portal. Your customs broker cannot do this for you. The first person to register becomes the Business Account Manager (BAM).
Phase 3: How to Get Your CBSA Import Bond
With the prerequisites met, you can now obtain your financial security.
3.1 Choose Your Security Option: Surety Bond vs. Cash Deposit
| Feature | Surety Bond (Recommended) | Cash Deposit |
|---|---|---|
| Amount Required | 50% of your highest month’s duties & taxes. | 100% of your highest month’s duties & taxes. |
| Capital Outlay | Low. Pay a small annual premium. | High. Ties up significant working capital. |
| Cash Flow | Preserves cash flow for your business. | Reduces liquidity by tying up funds. |
| Process | Simple online application with a surety provider. | Direct deposit via the CARM portal. |
3.2 How to Calculate Your Required Bond Amount
The formula is based on your single highest month of duties and taxes (including GST) paid over the last 12 months. The bond requirement is 50% of that total, with a minimum of $5,000 and a maximum of $10 million per RM account.
How to Find Your Number: You don’t need to calculate this manually. Log in to the CARM Client Portal and the “System calculated security requirement” will be displayed on your dashboard.
3.3 – 3.5: The Application Process
- Find a Surety Provider: You can engage a licensed surety company directly, but the most common route is through a licensed customs broker or surety agent like Acme Insurance Brokers. We have established processes to make this easy.
- Apply for Your Bond: The application is a simple online form requiring your legal name, address, BN15, and required bond amount. For most bonds, approval is fast.
- Post Your Bond Electronically: Paper bonds are no longer accepted. We will post your bond electronically to the CBSA using a secure system, linking it directly to your account for the fastest possible activation.
Phase 4: Managing Your Bond and Ongoing Compliance
Securing the bond is the first step. Ongoing management is key to maintaining your RPP privileges.
4.1 Monitor Your Security Utilization in the CARM Portal
The CCP dashboard shows you in real-time how much of your bond security you are using. The CBSA will send you automated “nudge” notifications if your utilization exceeds 75% and again if it surpasses 100%. You must take action by either making a payment or contacting us to increase your bond amount.
4.2 Prepare for Annual CBSA Security Reviews
The CBSA will formally review your security requirement each year. If your import volumes have grown, you will be required to increase your bond coverage. Proactive importers review their needs internally and arrange for an increase before the CBSA requires it.
4.3 The Evolving Role of Your Customs Broker
While you are now directly liable, your customs broker is a more vital strategic partner than ever. A good broker provides expert advice on navigating the portal, ensuring correct tariff classification, leveraging free trade agreements, and representing you during CBSA audits.
Frequently Asked Questions
The minimum required bond amount is $5,000 per RM account (BN15).
You don’t pay the full bond amount. You pay a small annual premium to the surety company, which is a fraction of the bond value. The exact cost depends on the bond amount and your company’s financial profile.
No. Under CARM, all importers must secure their own financial security to be eligible for the Release Prior to Payment (RPP) program.
Without your own financial security, you lose RPP privileges. Your shipments will be held at the border until you pay all duties and taxes in full for each one, causing major delays.
Take Control of Your Imports
CARM represents a fundamental shift to direct importer accountability. Securing a CBSA import bond is a mandatory step for any BC business that wants to benefit from the RPP program. Let the experts at Acme Insurance Brokers handle your CARM bond requirement.
Or call us at 1-800-555-1234 to speak with a specialist.