The Release Prior to Payment (RPP) 180-day transition period ends on April 19, 2025, at which time importers must have their own financial security arrangements to meet the RPP program requirements.
When CARM became the official system of record, obtaining the release of imported goods prior to accounting and payment of duties significantly changed for importers. Importers are no longer able to use their customs broker’s security to clear shipments before paying duties and taxes.
CARM requires all importers to post security with CBSA to guarantee the payment of duties and taxes before goods will be customs released (Release Prior to Payment – RPP).
The Release Prior to Payment (RPP) Program allows participants to obtain the release of goods from the CBSA before the final accounting and payment of duties and taxes.
- With over 250,000 importers requiring bonds, surety companies will be faced with an influx of bond requests within a relatively short period of time – to avoid being caught without a bond after the transition period, we recommend obtaining the required bond now.
Importers who have not yet obtained a bond – here’s what you need to know:
All importers must post security using one of the following two options to be eligible for RPP:
- Option 1: a financial security instrument for 50% of their highest monthly accounts receivable (inclusive of GST) with a minimum financial security of $5,000 per import program (RM)
- Option 2: cash security deposit for 100% of their highest monthly accounts receivable (inclusive of GST)
Recommendation – obtain a bond for a higher amount than required to avoid costly revisions
IMPORTANT: If financial security is not provided within the 180-day transition period, the importer will be removed from the RPP program (at day 181). Without the required bond, you will be required to pay CBSA in advance for all duties/taxes prior to gaining the release of imported shipments after the 180-day transition period.
Universal has secured very competitive RPP Bond rates with our Surety. To take advantage of these rates please feel free to contact your Client Care representative or Mark Glionna, Vice President—Client Relations & Business Development.
