CARM was launched on October 21, 2024, addressing the risks of aging technology and introducing significant changes for importers. One of these changes is the requirement for importers to post their own financial security to participate in the Release Prior to Payment (RPP) customs program. The RPP program allows goods to be released prior to their arrival.
Every year, over 99% of goods are cleared using the RPP program. If importers do not participate, they will need to pay duties and taxes to the CBSA (Canada Border Services Agency) at the port of entry under CARM CAD type C before goods can be released at the border.
Benefits of Enrolling in the RPP Program are:
- Streamlined customs release
- Delayed accounting for goods
- Delayed payment of duties and taxes
The transition period ended on May 20, 2025. Now, all importers who wish to continue to benefit from the RPP program must post their financial bond.
Obtaining a surety bond primarily serves to accelerate goods release and does not act as a substitute for paying duties and taxes.
There are two types of financial bonds: an annual surety bond or a cash deposit.
An annual surety bond is a bond backed by one of the security providers accredited by the CBSA. It is calculated as 50% of the importer’s highest monthly account payable to the CBSA within the prescribed 12-month period. The minimum bond amount is $25,000 per import program (RM). The security agreement option requires minimal involvement from the importer, as most aspects are handled by the security provider.
A cash deposit is calculated as 100% of the importer’s highest monthly account payable to the CBSA within the prescribed 12-month period. It is held by the CBSA and acts as a guarantee against importer debt. If there are multiple importer RM accounts, the importer must secure each of them either by posting one security for one account or multiple securities for one or more accounts. There is no minimum amount for a cash deposit.
If importers who previously participated in the RPP program did not post their bond by May 20, 2025, they will need to reapply via the CARM portal.
For further details, refer to the CBSA’s “Post financial security for Release Prior to Payment” guide.
At SC Integrators, we can help you apply or reapply to the RPP program via the CARM portal and assist with posting and securing financial security to streamline your importing process. Reach out to us today to learn how we can help.