CARM – CBSA Assessment and Revenue Management

Simply put, a surety bond is a credit instrument. This guarantees the payment of duties and taxes to the government when you import goods into Canada.

In the industry, they are often simply referred to as a “Bond”.

The insurance company undertakes to pay in the event of non-compliance by the importer with its obligations.

You can buy your bond directly from a surety company, but the easiest way is through Axxess, your customs broker.

Please contact your Axxess representative for more details or email infocarm_gcra@axxessintl.com

The required financial security amount is determined by the CBSA based on the highest monthly disbursement of duties and taxes during the annual review period (from October 20 previous year to October 19 current year).

• This amount may vary from year to year, depending on your import activity.

How to check your amount

• Log in to your CARM Client Portal
• Go to Financial Information
• Click on Financial Security
• Review the Total Required Financial Security

To be eligible for the Release Prior to Payment (RPP) program, importers must provide the CBSA with financial security using one of the following two options:

• A customs bond equal to 50% of the highest monthly accounts receivable
  (including duties and taxes), with a minimum amount of $5,000;
  or
• A cash security deposit equal to 100% of the highest monthly accounts receivable
  (including duties and taxes).

Period used for the calculation:

The CBSA conducts an annual review based on transaction history over a 12-month period, from:

October 20 of a given year to October 19 of the following year.

Following this review:

• Importers whose required amount increases will receive a notification in the CARM Client Portal
  (notification type: RPP – Annual Review);
• The new financial security amount must be in place no later than January 15 in order to maintain eligibility for the RPP program.

Need assistance?

Our team can help you review your import history and validate the required financial security amount based on your specific situation.

A customs bond is a legal document and a form of insurance. It must be authorized and signed by an official signatory of the company, typically someone with the authority to make financial commitments on behalf of the organization.

If you are unsure about your role or eligibility, feel free to contact us: our team is here to guide you through the process.

Benefits of using the Importer’s Direct Security (Direct Security) option include a monthly payment covering the full amount of your duty and GST on your government account statement.

On the 25th day of each month, you will receive a duty and GST payable report by email. Payment is due directly to the Canada Border Services Agency on the last business day of the month.

Payment must be made through online banking with your financial institution.

This bond also avoids having to deposit a cash security deposit or certified checks with the CBSA to receive the release before the payment of the duties, tax liens on your imports into Canada.

Please call your Axxess representative or email infocarm_gcra@axxessintl.com and we will contact you to begin the process.

All importers will be required to post security to participate in the Release Prior to Payment (RPP) program and will no longer be able to use their customs broker’s security.

Not having a financial guarantee for your company could lead to delays at the border and/or the refusal of your goods in Canada.

Without adequate financial security, an importer is not eligible for the Release Prior to Payment (RPP) program.

In this situation, duties and taxes must be paid before the release of goods at the border, which may result in:

• customs clearance delays and increased waiting times;
• additional costs, including trucking fees, wait-time charges, storage, detention, and demurrage;
• operational disruptions and reduced supply chain efficiency;
• increased administrative burden related to managing pre-release payments.

Financial security is essential to ensure smooth, predictable, and efficient import operations, and to fully benefit from the advantages of the RPP program.

A bond is automatically renewed each year unless it is canceled by your company or the surety company.

If you have questions about the renewal process or would like to confirm the status of your bond, contact us: we will be happy to provide the details and assist with your needs.

If your financial security requirements change and you need to cancel your bond, you can notify your surety company directly.

However, to simplify the process, Axxess can handle this step for you. Reach out to us, and our team will coordinate everything to ensure the process is hassle-free.

The Release Prior to Payment (RPP) program allows eligible importers to receive their goods in Canada before paying duties and taxes.

This program helps importers:

• receive their goods faster;
• avoid immediate payments at the border;
• simplify day-to-day import operations.
• And most importantly… Peace of Mind!

To participate in the RPP program, importers must have adequate financial security in place with the CBSA.