• Enroll in RPP: You must formally enroll in the RPP program within your CARM portal.

• Secure your financial security (RPP bond): This is very important. You need to decide between a cash or surety bond and have it posted to your CARM RPP account.

• Delegate Authority to your Customs Broker: Accept our request and Grant us the necessary access in CARM.

• Classification & Valuation: It's essential to confirm the precise HS codes for your goods and their accurate valuation. These details are fundamental because they dictate the duties and taxes you'll pay, as well as whether specific government agency regulations or free trade agreement benefits are applicable.

• Prepare Shipment Documentation: Ensure all necessary commercial invoices, packing lists, permits, licenses, and certificates (if applicable) are ready for your specific shipment, and provided to the customs broker in advance of the shipment.

• Pre-Shipment Preparation:

  • RPP & Financial Security: As discussed, secure your bond and enroll in RPP.

  • Broker Delegation: Grant us access in CARM.

  • Product Information: Provide us with detailed product descriptions, origin, and intended use for accurate classification.

  • Documentation: Prepare all necessary commercial documents for your shipment (commercial invoice, packing list, bill of lading/air waybill, etc.).

• Shipment in Transit:

  • Your supplier ships the goods. You provide us with shipping details (carrier, tracking numbers, estimated arrival), and a copy of the customs documentation.

• Customs Release (Arrival):

  • Upon arrival at the Canadian border, the carrier assigns a cargo control number and transmits their own basic manifest data (info that is specific to the carrier and their requirements) to CBSA.

  • We, as your customs broker, prepare and transmit the customs release request (your declaration for the goods) to CBSA using the information you've provided, referencing the carrier’s cargo control number, and any inland warehouse information as necessary.

  • CBSA reviews the release request. If all is in order and your RPP is active, the goods are conditionally released into Canada.

  • The carrier is then authorized to move the goods from the border.

• Customs Accounting & Reporting (Post-Release):

  • Within 5 days of release, we prepare and transmit the Commercial Accounting Document (CAD) to CBSA in CARM, detailing the precise classification, valuation, origin, and calculation of duties and taxes.

  • Payment to CBSA:

    • Through your CARM portal, you will see your Statement of Account. You are responsible for making payments directly to CBSA by the due date. Your RPP bond covers this payment in the interim.

    • How to find out what you owe: Check your Statement of Account (SOA) in the CARM Client Portal or via EDI on the 25th of each month. Your transaction history is also available for review.

    • When payments are due: Payments are due 10 weekdays (including holidays) after the 17th of the month. Late payments can incur penalties and interest.

    • Payment Methods:

      • Online Banking: You can pay through your financial institution by adding "Canada Border Services Agency" or similar as a payee and using your 15-digit Business Number RM account (BN15) as the account number. Be aware of your bank's daily cut-off times.

      • CARM Client Portal:

        • Credit/Debit Card (Visa, MasterCard, American Express): Payments are limited to a maximum of $4,999.99 per month.

        • Pre-authorized Debit (PAD): Businesses can set this up by filling out an agreement form. Payments are initiated on the due date but may take a few days to process. PAD must be set up with a Canadian financial institution.

• Post-Clearance Verification/Audit:

CBSA may conduct verifications or audits at any time after clearance to ensure compliance. We provide ongoing support for these

• How much financial security is required in my case, and how is it calculated for new importers?

Under CARM, importers need to provide financial security to use the Release Prior to Payment (RPP) program, which allows goods to be released before duties and taxes are paid.

There are two main options for this security:

• • Cash Security Deposit: You deposit 100% of your highest monthly accounts receivable (including GST) in the last 12 months. There is no minimum amount required for this option.

  • Financial Security Agreement (Surety Bond): This requires a bond equal to at least 50% of your highest monthly accounts receivable (including GST) for the last 12 months, with a minimum of $5,000 per import program (RM) account.

For first-time importers, the CBSA might initially assess $0 for required security. While technically no security is needed in this case, a small buffer ($100 for cash deposits or slightly above the minimum for surety bonds) is recommended. This buffer helps prevent future delays or the need to increase security if your import activity (and thus accounts receivable) fluctuates or increases, ensuring you maintain your Release Prior to Payment (RPP) program eligibility.

• Cash Bond:

  • Pros: Simpler setup (you deposit the full amount with CBSA), no ongoing premium payments, no credit check required by a third party.

  • Cons: Ties up a significant amount of your working capital, funds are held by the CBSA and not earning interest, can be slow to retrieve if no longer needed.

• Non-Cash Bond (Surety Bond):

  • Pros: Does not tie up your working capital (you pay an annual premium to a surety company), acts like an insurance policy for CBSA, can be arranged relatively quickly.

  • Cons: Requires an application process with a surety company (which may involve credit checks and financial review), involves an annual premium payment, may require collateral for very large bond amounts or for businesses with limited credit history.

• Recommendation: For most businesses, especially those with regular import activity, a non-cash surety bond is generally the preferred option as it preserves working capital. We can assist you in obtaining one.

• Do you have any recommended surety providers for the non-cash bond option?

  • Yes, we can assist you directly in obtaining one.

If you use a surety bond, once your surety bond is approved, the surety company will electronically transmit the bond information directly to CBSA.

If you use cash, here's how it generally works:

1.      Access the CARM Client Portal: Log in to your CCP account.

2.      Determine your required financial security: Navigate to the "Financial Information" section and check the "Financial Security Dashboard" to see the required amount. This amount is usually based on your highest monthly accounts receivable within the last 12 months.

3.      Initiate the cash bond process: Under the "Bond list" section, click "Add bond" and select "Cash" as the bond type.

4.      Complete the required information: Fill in the necessary fields on the "Post cash bond" page. You'll need to add a bond number or personal reference number, your full import number (BN15), and the required financial amount.

5.      Make the payment: Follow the prompts to make a credit card payment online or choose another authorized payment method. The amount should be equal to or greater than 100% of your calculated security requirement.

6.      Allocate the credit: Once the payment is processed, return to your CARM home page, select "Payments," then "Allocate credit as payment." Select the security deposit payment you made and submit it.

7.      Verify the linkage: After submitting the security deposit, go back to your "Program account profile" page. In the "Sub-Programs" tab, under the "Requests" section, you should see your request to enroll in RPP with a status of "Pending security deposit".

8.      Finalize the process: Click on the "$ Deposit icon." Your status should change to "Active," and you can then click "Submit security" to finalize the process. 

• CBSA will periodically reassess your security requirement based on your actual import activity and payment history. This is typically done annually, but they can review it more frequently if there are significant changes in your import volume or payment compliance.

• You will be notified of any changes to your required security amount directly within your CARM Client Portal, often through an email notification linked to your portal account. It's essential to regularly check your CARM notifications.

• Should I approve your firm as a business manager or program manager?

  • We always recommend approving our firm as a Business Account Manager, which defaults to a lesser level of access than you as the main business account manager. When BAM is delegated to the customs broker, we default to a (proxy) pBAM status.

    • The Program Business Account Manager (pBAM), is a delegated role for third-party service providers, like customs brokers. This allows us to manage specific aspects of your CARM account on your behalf, but with restrictions that safeguard your sensitive information and prevent us from managing your internal employee access. Essentially, the pBAM role is a limited version of the BAM's capabilities, designed for secure third-party assistance.

  • Key differences between a BAM and a PAM

    • BAM manages the entire business account, while PAM manages a specific program account, and is limited in what a broker can access.

• What visibility attributes should I assign to your firm for proper access?

  • When you accept our business relationship request, you'll be prompted to assign "Visibility Attributes." To ensure we have proper access for customs clearance and related activities, you should grant us visibility for:

    • Commercial Importer Program (RM): This is essential for us to declare your imports.

    • Release Prior to Payment (RPP) Program: This allows us to manage your RPP bond and ensure your goods can be released on credit.

    • You may also consider "Statements of Account" so we can view your financial obligations, but we primarily need access to the two programs listed above.

What common mistakes should I avoid as a first-time importer?

• Not Activating RPP & Posting Bond in Time: This is the biggest one. Without it, your goods will be held until duties/taxes are paid, leading to significant delays and costs. Last-Minute RPP Setup: Trying to get the bond and RPP set up just days before a shipment arrives. This almost always leads to delays. Start this process weeks in advance.

• Incorrect HS Classification: Leads to incorrect duties, potential penalties, or delays.

• Incomplete or Inaccurate Documentation: Missing commercial invoices, incorrect values, or absent permits/licenses. Supplier Documentation Issues: Suppliers providing vague product descriptions, incorrect origins, or incomplete commercial invoices.

• Lack of Communication: Not sending the customs broker the documents in advance of the shipment. Not communicating changes in shipment details or expected arrival times.

• Ignoring Trade Agreement Rules of Origin: Assuming goods qualify for preferential treatment without proper documentation.

• Under-Valuation: Intentionally or unintentionally declaring a lower value for duty to reduce costs, which can lead to severe penalties.

• Lack of Internal CARM Account Management: Not having multiple BAMs or failing to monitor your CARM account regularly for CBSA notifications.

• Not Understanding Payment Deadlines: Missing the 25th-of-the-month payment deadline to CBSA can result in penalties and suspension of your RPP privileges.

• CARM Portal Inactivity: Not logging into your CARM portal regularly to check for CBSA notifications, statements of account, or security updates.

• Payment Defaults: Missing the 25th of the month payment deadline.