Project Description

Canadian Customs Bonds

For shipments to flow across the border they require either ‘prepayment’ or ‘posted security’ (Customs Bond).

What Do You Need to Know?

Posting Security with a Customs Bond

The Challenge:

Importers who ship into Canada have received inconsistent messaging in regard to the requirement of having to post security with Canada Border Services Agency (CBSA).

The Facts:

Importers (resident or non-resident) will soon be required to have direct security on file with their Customs Broker as CBSA implements CBSA’s Assessment & Revenue Management – CARM.

Prepayment or Security is a requirement in the customs clearance process. However, the current environment enables the broker the ability to use their security to assist importers who do not have, or are unable to obtain, a customs bond.

Visit GHY’s webpage on CARM – www.carmcbsa.com for full details, and updates.

The below graphic and Q&A section further outlines importer security/Custom Bond details.

Q & A

  • A Customs Bond acts as an insurance policy against default payment; therefore, protecting your trading partners by ensuring payment.
  • Preparation for CBSA’s Assessment and Revenue Management program (CARM) as importers will be required to post their own security to qualify for the release prior to payment program.
  • For Canadian Resident Importers – the amount of security required is based on your monthly average of duties & taxes owing, less GST over the previous 12 months.
  • For Non-Resident Importers (NRIs) – the amount of security required is based on your monthly average of duties & taxes owing, inclusive of GST over the previous 12 months.
  • Payment of GST and duty is no longer made to GHY, rather directly to CBSA. GHY will continue to invoice for our trade facilitation services.
  • On the 25th of each month, GHY will send a monthly statement of account outlining GST and duty owed directly to CBSA. The GST and duty for individual transactions will still be shown on your Canada Customs Coding Form, GHY invoice & reporting for audit and reference.
  • Payments to CBSA can be made online.
  • CBSA is a selectable payee at most financial institutions. Use your 15-digit business number (e.g. 825292204RM0001) as the identifier when completing a transfer.
  • The easiest way is through GHY. We can apply on your behalf and will educate you through the process.
  • Sign a Direct Security Letter with GHY for all unique business entities.
  • GHY can arrange to set up a bond for you through our surety partner.
  • Any bond request exceeding $10,000 CAD will be subject to a full credit check.
  • Full analysis of the financial statements from the past 3 years.
  • Completion of future business viability questionnaire.
  • Sign bond application and GHY will complete application and update your profile with CBSA.
  • Each unique business entity, using a separate 9-digit business number will require its own bond.

Stay compliant with Customs, obtain your own Customs Bond today!

We can assist you with obtaining a Customs Bond.

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