How Do I Become A Bonded Canadian Highway Carrier (DIY Customs Consulting)

This article is part of the Customs Compliance Guide

How to Become a Bonded Canadian Highway Carrier

A bonded Canadian carrier has many advantages, compared to a non-bonded Canadian highway carrier. For example, a bonded carrier can take shipments to be released inland to a bonded warehouse (such as a sufferance warehouse), and can apply for certain trusted trader programs such as Free and Secure Trade (FAST) and Customs Self Assessment (CSA), which many large companies (such as automotive manufacturers for example) prefer for their shipments.

A bonded carrier posts security with Canada Border Services Agency (CBSA) to cover the following situations:

Move commercial goods to an inland Canada Border Services Agency (CBSA) office or sufferance warehouse.
Move commercial merchandise or goods in transit through a Canadian corridor (such as when bringing goods from the lower 48 U.S. states to Alaska for example).
Apply to the Customs Self Assessment (CSA) Program and the Free and Secure Trade (FAST) Program.

Highway carriers can post financial security (of $5000 to $25000) through an approved surety company (such as Hub International or Quickbond for example) to initiate the bond application process.

It's also important to review CBSA guidelines on becoming a bonded Canadian highway carrier which can be reviewed here.

Highway carriers apply as a bonded carrier differently depending on their situation. 1. If they already have a non-bonded highway carrier code, OR 2. if they do no have a carrier code at all.

1. If you already have a non-bonded highway carrier code you will need to follow these instructions:

Change your existing carrier code to a bonded status by providing the original filled out CBSA Form 722 Changing bonded status for existing CBSA carriers.
Providing the original filled out CBSA Customs Bond Form D120.
Gather all documents pertaining to your company. Include original letters of incorporation and/or partnership documents.
Post security of $25000 with a licenced surety company.

2. If you do not have a highway carrier code and would like to become bonded, follow these instructions:

Apply for a bonded highway carrier code by providing the original filled out CBSA Form 329-7 Carrier Code Application. Be sure to fill out all fields pertaining to the bond on the form as well.
Providing the original filled out CBSA Customs Bond Form D120.
Gather all documents pertaining to your company. Include original letters of incorporation and/or partnership documents.
Post security of $25000 with a licenced surety company.

The Customs Bond Form D120 must include the supporting documents as well, such as proof of the continuous (or specific period of time) bond issued by the surety company.

You will also have to provide proof of ownership of the highway carrier, the company owner name, address as also mentioned in the BSF 329-7 form, the business number (as assigned by the CRA, foreign companies can leave that field blank), signature of the owner or CEO, surety company details and signatures of surety company, embossed surety company seal, witness signature(s), a witness signature(s) for the surety company, date of signature/seal and power of attorney information.

Once CBSA approves your bonded carrier application the carrier will be issued a new bonded Canadian carrier code. The carrier can then also, start the process to become a trusted trader. To learn about trusted trader programs such as CSA or the FAST program click here.

References

CBSA Guidelines - Highway Carrier Code Application Process - https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hccap-ddctr-eng.html

BSF329-7 – https://www.cbsa-asfc.gc.ca/publications/forms-formulaires/bsf329-7-eng.html

BSF722 - Changing bonded status for existing CBSA carriers - https://www.cbsa-asfc.gc.ca/publications/forms-formulaires/bsf722-eng.html

D120 - Customs Bond - https://www.cbsa-asfc.gc.ca/publications/forms-formulaires/d120-eng.html

Mailing Address for CBSA Commercial Operations Integrated Support: Canada Border Services Agency 191 Laurier Avenue West, 12th Floor Ottawa, Ontario K1A 0L8

Information on The Marine Overland Movement Program - https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/mc-tm-eng.html