An RPP bond lets a Canadian importer post as little as 50% of its Release Prior to Payment (RPP) security requirement, with a CAD 5,000 minimum, instead of depositing 100% in cash with the Canada Border Services Agency (CBSA). CARM, the CBSA Assessment and Revenue Management system, calculates that requirement from what your business owes CBSA. RPP itself is optional: it lets CBSA release goods before final accounting and payment of duties and taxes. If you buy from China, put the bond or deposit in place and finish RPP enrollment before the first container needs release.
Do You Need an RPP Bond to Import From China?
No. Security is required only if you want RPP, and a cash security deposit meets that requirement as well as a bond. Without RPP, duties and taxes are due when CBSA releases the goods, so cash leaves the business earlier, but no security has to be posted.
The obligation follows your Canadian importer program account, not your supplier’s country. CBSA’s Memorandum D17-1-8 states that the importer’s own security secures duties and taxes, so a customs broker’s bond does not cover your account, and booking freight or appointing a broker does not enroll you in RPP. RPP changes only when you pay. Your business still owes the duties and taxes and must still meet the product and documentation requirements for the goods.
How Much Does an RPP Bond Cost?
An RPP bond has two separate figures: the security amount CBSA requires, and the premium a surety charges to provide that coverage. A CAD 5,000 bond does not cost CAD 5,000.
Required Security Amount
CARM calculates the requirement from your highest monthly accounts receivable with CBSA over the previous 12 months, including duties, GST and surtax. It does this for each importer program account, called a BN15 because it combines your nine-digit business number with the RM program identifier. What you post depends on the form of security:
| Requirement | Written Security Agreement (Bond) | Cash Security Deposit |
|---|---|---|
| Amount to post | At least 50% of the calculated requirement | 100% of the calculated requirement |
| Minimum | CAD 5,000 per BN15 | None stated by CBSA |
| What you pay | A premium to the financial security provider | The full deposit to CBSA |
CBSA caps the requirement at CAD 10 million per BN15, although an importer may post more. Suppose CARM shows CAD 20,000: a bond would need at least CAD 10,000 of coverage, while a deposit would hold the full CAD 20,000 with CBSA. Work from that CARM figure, because the value of one container, the ocean freight charge and the amount paid to Chinese suppliers measure different things.
Bond Premium
Each surety sets its own premium. In its April 2025 RPP presentation, the Surety Association of Canada (SAC) said premiums are usually a percentage of the bond amount, subject to a minimum premium. SAC also said sureties typically ask for an indemnity agreement from the importer rather than collateral. For a CAD 5,000 bond, SAC indicated a likely fixed premium of CAD 100 to CAD 300 a year.
When you request quotes, ask each provider for the initial premium, the renewal charge, any fee for increasing coverage and any collateral or indemnity terms. Compare that cost with the cash a deposit would keep out of your working capital. Budget the premium apart from the duties and taxes, which you still pay by each payment due date.
How Do You Arrange an RPP Bond?
Buy the agreement from a financial security provider, post it in CARM, then complete RPP enrollment yourself. CARM records the security but does not sell it.
- Confirm the legal business and BN15 that will account for the goods, and which broker, if any, will act for you.
- Give the provider the required amount, the account details and the date coverage must start.
- Post the agreement, either through the provider’s submission to CBSA’s bond interface or by entering the details in CARM for the provider to approve.
- Enroll in RPP in the CARM Client Portal and select Submit security, even when the provider has already posted the agreement.
On the portal’s Non-cash tab, “Under guarantor approval” means the provider has not yet approved your entry, and “Active” means it has approved the request and uploaded the agreement. Resolve any mismatch in the business name or BN15 with the provider and broker before a shipment depends on that account, and keep the security reference and enrollment confirmation with your import records.
A cash deposit follows a different path. You post the deposit in CARM at 100% of the requirement, pay the same amount through CBSA’s online payment process, and then submit the security to finish enrollment.
Keep Your RPP Security Current
CBSA recalculates the requirement once a year, and an increase must be posted by a fixed deadline for you to keep RPP.
| Date | What Happens |
|---|---|
| October 20 of the previous year to October 19 | CBSA takes the highest monthly accounts receivable in this period |
| October 20 | Enrolled importers receive a CARM notification of the updated requirement |
| January 15 of the following year | Deadline to increase security if the requirement rose |
If the requirement falls, reducing your security is optional. To increase it, arrange higher coverage with the provider or post additional deposit funds, then confirm that CARM shows the updated amount. Between reviews, compare larger or more frequent orders from China with the coverage already posted. Memorandum D17-1-8 makes the importer responsible for keeping adequate security, and CBSA may suspend or revoke RPP when the security requirement is not met.
Shipping From China With an RPP Bond in Place
Settle the bond and enrollment while your suppliers are still producing, and review the release arrangement with your Canadian broker before you authorize the cargo to leave China. For a consolidated container, the broker needs supplier-level invoices, product descriptions and package counts that match the final packing list, so prepare the sea freight documents from the cargo that actually ships.
Foresmart, which provides freight forwarding from China, collects from suppliers across China, consolidates and prepares the cargo at its warehouses, books the freight and coordinates the China-side documents for your broker. The surety provides the bond, your business keeps its RPP enrollment current and the broker handles its authorized customs work, while Foresmart covers the agreed collection, consolidation and transport. Send your supplier locations, cargo-ready dates, product details, packed weights and dimensions, delivery address and the names of your importer and broker, so the quote can set out each party’s role alongside the freight.
Frequently Asked Questions
How Does a New Importer Calculate RPP Security?
Estimate it from your expected monthly duties and taxes. With no 12-month history, CARM calculates the requirement as zero, and you can complete RPP enrollment without posting security. Memorandum D17-1-8 still expects new importers to forecast their accounts receivable, and CARM will prompt for more security or payment once your transactions show the amount is insufficient.
Can One RPP Bond Cover Multiple Import Accounts?
Yes. CBSA lets one financial security cover several importer program accounts: you create a security agreement for each account using the same security number and allocate an amount to each. Agree on the split with the provider first, because CBSA says the agreements cannot be changed once approved in CARM.
What Happens If an RPP Bond Is Canceled?
You lose RPP. Under Memorandum D17-1-8, an importer is removed from the RPP privilege when the importer or the surety cancels the bond, and CBSA can reinstate it once new security is provided, subject to processing times. Arrange replacement coverage before the next shipment needs release.
Source
- Enrol for Release Prior to Payment, Canada Border Services Agency: RPP as an optional sub-program and the choice between a security deposit and a security agreement.
- Get ready to enrol, Canada Border Services Agency: security calculation, the 50% and CAD 5,000 rules, the CAD 10 million cap, multi-account allocation and annual review dates.
- How to post financial security, Canada Border Services Agency: posting methods, portal statuses, cash deposit steps and completing RPP enrollment.
- Memorandum D17-1-8: Release Prior to Payment Privilege, Canada Border Services Agency: importer security versus broker security, new-importer forecasts, cancellation, suspension and reinstatement.
- Post financial security for Release Prior to Payment (RPP) privileges, Canada Border Services Agency: the zero requirement for new importers and the enrollment steps.
- Release, account and pay duties and taxes, Canada Border Services Agency: payment at release for importers without financial security.
- An Introduction to Obtaining Release Prior to Payment (RPP) Bonds, Surety Association of Canada: how premiums are priced, collateral practice and an indicative premium for a CAD 5,000 bond.
