Canada

A bonded carrier posts security with the CBSA to cover the following situations:

  1. Movement of goods to a CBSA office inland (not located at the border) for release of the shipment;
  2. Movement of goods “in transit” through Canada. The bonded carrier uses Canada as a corridor, or a shortcut, by starting from a point outside Canada and then transiting through Canada to another point outside Canada (e.g. U.S. → Canada → U.S.). The goods in transit are not released in Canada;
  3. Movement of goods into Canada for export to a foreign market. (e.g. U.S. → Canada → China)
  4. Application to the Customs Self-Assessment program and/or the Free and Secure Trade (FAST) program; or
  5. Application to the post-audit program.

Under the Customs Act and the Regulations respecting the Transportation of Goods, carriers are liable for duties and taxes on goods carried in bond within their system, and have to place a bond with the CBSA to ensure payment.

If the duties and taxes are not paid, the CBSA traces the outstanding cargo. The carrier has to prove then that the duties and taxes were paid on the goods, or that the goods were exported or put in a sufferance or bonded warehouse.

BECOMING A CANADA BONDED CARRIER

You must post security with the Canada Border Services Agency (CBSA) in the form of cash, certified cheque or a bond. The security amount is normally $25,000.00 and the time frame varies between 3 to 4 weeks.

Bonded highway carriers have 30 days after receiving their carrier code to obtain bar-coded labels. After 30 days, an administrative penalty of $1,000 will be imposed on the carrier if the carrier does not use bar-coded labels when arriving at the Canadian border.

If you change your address, you are required to notify the CBSA as soon as possible.

If your business changes its name, you must forward all relevant documentation to the CBSA as soon as possible.

Bonded carriers who use bonds as security must forward an original of the bond rider / endorsement provided by the Canadian insurance company or Canadian financial institution to the CBSA.

Stateside is the largest service provider for the placement of Canada Customs Bonds in North America.

Contact us to request a “CARRIER BOND INFORMATION SHEET” or to have a representative contact you directly.
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