What is a Customs Bond?
A customs bond with the Canada Border Services Agency (CBSA) is a financial guarantee that ensures businesses importing goods into Canada comply with customs regulations and fulfill their financial obligations. This bond guarantees that the importer, customs broker, or other involved party will pay any applicable duties, taxes, penalties, and other fees.
Without a customs bond, importers will not be able to benefit from the RPP (Release Prior to Payment) program and will cause delays and potential penalties with their clearance with CBSA.
Customs Bond benefits and requirements
This bond allows importers to participate in CBSA’s Release Prior to Payment (RPP) program, enabling them to clear shipments and account for payment at their statement due date,
It provides financial security for deferred payments on customs duties, GST, excise taxes, and other government fees.
Required for importers who want to self-clear goods or use a customs broker under the RPP.
How Does a CBSA Customs Bond Work?
Application & Approval – The importer must apply for a bond through a licensed surety company, financial institution or most commonly, through their customs broker.
Bond Issuance – The surety company or customs broker issues the bond, which is then submitted to CBSA as part of the clearance process.
Customs Clearance – Once the bond is in place, goods can be released by CBSA through the Electronic Data Interchange (EDI) system with their customs broker and accounted for with CBSA with little to no delays.