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The Canada Border Services Agency (CBSA) has introduced a significant modernization to how duties and taxes are assessed and collected through the CBSA Assessment and Revenue Management (CARM) system. A critical component of this change is the Release Prior to Payment (RPP) program, which now requires importers — both Canadian and international — to post their own financial security in order to defer payment on duties and taxes.
This comprehensive guide outlines the current RPP bond requirements under CARM, including the fast-approaching May 20, 2025 deadline, and how importers can remain compliant and operational in the Canadian market.
What is CARM?
CARM is CBSA’s initiative to streamline the import process by providing a centralized online platform — the CARM Client Portal (CCP) — where importers can manage their customs accounts, view transactions, make payments, and post financial security.
Under this new system, all importers must be registered in the CCP and directly responsible for posting their own security to participate in the Release Prior to Payment (RPP) program.
What is the RPP Program?
The Release Prior to Payment (RPP) program allows importers to obtain release of goods from CBSA before duties and taxes are paid. This is essential for avoiding costly delays at the border and improving supply chain efficiency.
The big change under CARM: Importers can no longer rely on their customs broker’s bond. Every importer — whether Canadian or foreign — must post their own financial security under their own BN15 (Business Number + RM account) in order to participate in RPP.
Key Deadline: May 20, 2025
Importers must have their financial security posted in the CARM system by 3:00 a.m. EDT on May 20, 2025.
If you fail to meet this deadline:
- You’ll lose RPP privileges
- Your goods won’t be released until full payment of duties and taxes
- You’ll face potential delays, cash flow issues, and penalties
Who Needs to Post Financial Security?
This requirement applies to:
- Canadian resident importers
- Non-resident importers (NRIs) — including companies located outside Canada who import goods under their own name
- Any entity acting as the importer of record with a BN15 account
Apply for an RPP Bond in Minutes
There is also CRA’s requirement for Non-Resident GST Bonds, which are completely different and separate from your RPP security requirements.
Two Options for Financial Security
Importers can meet the RPP financial security requirement in one of two ways:
1. Surety Bond (RPP Bond)
**Recommended**
A surety bond is a cost-effective, renewable form of financial security issued by a licensed surety provider and uploaded directly to CBSA.
- Amount: 50% of the importer’s highest monthly accounts receivable (AR) with CBSA over the past 12 months
- Minimum: $5,000 per BN15
- Maximum: $10 million per BN15
- Requires less upfront capital than cash
- E-bond is delivered to CBSA via API and instantly applied to your account
2. Cash Security Deposit
Importers may also choose to deposit cash security directly to CBSA rather than using a bonding company.
- Amount: 100% of the highest monthly AR (double the bond requirement)
- Ties up working capital
- Does not require underwriting
How to Calculate Your Required Security
Your required bond amount is based on:
- The highest monthly amount of duties, taxes (including GST), penalties, or adjustments payable to CBSA over the past 12 months
- For surety bonds, multiply this number by 50%
- For cash deposits, it must be covered at 100%
You can find your monthly AR details directly in the CARM Client Portal dashboard.
What Is a BN15 Number?
A BN15 is the 15-digit importer account number recognized by CBSA. It is composed of:
- BN9: Your 9-digit Business Number, issued by the Canada Revenue Agency (CRA)
- RM Program Account: A 6-digit suffix (e.g., RM0001) used specifically for importing/exporting
You must have both a BN9 and a registered RM account to interact with CARM or apply for an RPP bond.
Your BN15 is mandatory as part of the RPP bond application. Without it, your bond cannot be issued or applied to your importer profile in the CARM system.
How to Post Your RPP Bond in the CARM Portal
Here’s the step-by-step process:
Ensure you have a valid BN15 (CRA-issued BN9 + RM account)
Register your business in the CARM Client Portal
Select the RPP option under your RM account profile
Post financial security:
Choose between surety bond or cash deposit
If using a surety bond, work with a licensed broker (like Bond Connect)
What Happens if You Don't Comply?
If you do not post the required financial security by the May 20, 2025 deadline:
- Your RPP privileges will be suspended
- Goods will not be released until full payment of duties and taxes is made
- You could face delays, shipment disruptions, and damage to customer relationships
Benefits of Using a Surety Bond
Surety bonds are typically the preferred option due to their speed, flexibility, and reduced impact on cash flow. Key benefits:
- Lower cost than a cash deposit
- Renewable annually
- No cash outlay required (premium only)
- E-bond submission via API ensures immediate application to your BN15 with no manual intervention
- Ideal for recurring importers or NRIs looking for long-term access to RPP
Getting Your RPP Bond with Bond Connect
Bond Connect specializes in providing RPP surety bonds for CARM compliance and offers the most streamlined experience available in Canada:
Fully Online Application: No paperwork. Apply, get approved, and issue the bond digitally.
Same-Day Issuance: For bond amounts up to $100,000, we offer automated quick approval.
CBSA API Integration: Once your bond is issued, it’s immediately uploaded to CBSA via eBond API — no delays or manual entry.
BN15 Validation: We ensure your bond is properly tied to your active RM account.
Over $100K? You’ll need external accountant-prepared year-end financial statements for approval, as required by Canadian underwriting standards.
RPP Frequently Asked Questions
Q: Can I apply for an RPP bond if I don’t yet have a BN15?
A: No — you must have your BN15 in place before applying. The bond is linked specifically to your 15-digit importer account (BN9 + RM). Without this, the eBond cannot be submitted or accepted by CBSA.
Q: How do I know what my bond amount should be?
A: Your required bond amount is based on your highest monthly duties, taxes, and adjustments owed to CBSA over the past 12 months. This information is available in your CARM Client Portal under the Financial Security Dashboard.
Q: Does the CBSA accept paper bonds or manual uploads?
A: No. All RPP bonds under CARM must be submitted electronically (eBond) through CBSA’s API system. Bond Connect ensures this integration — once your bond is approved, it’s uploaded and applied automatically to your account.
Q: What happens to my bond after it’s submitted?
A: Once submitted via API, your bond is immediately visible in your CARM Client Portal and activates your RPP privileges. There’s no additional action required on your part or by CBSA.
Q: What if my import volumes fluctuate month to month?
A: Your bond amount is based on the highest monthly AR in the past 12 months. If your import volume increases significantly, you may be required to increase your bond amount to remain compliant.
Q: Can I switch from a cash deposit to a surety bond later?
A: Yes — importers can switch from a cash deposit to a surety bond at any time. In fact, many start with a cash deposit to meet the deadline, then replace it with a bond to free up working capital.
Final Thoughts
The shift to CARM and individual RPP bond requirements marks a major change for all importers doing business with Canada. If you’re not ready by May 20, 2025, you risk losing the ability to defer payments — and that can severely disrupt your supply chain and financial flow.
Don’t wait — secure your RPP bond today and ensure your business remains compliant and efficient in 2025 and beyond.
