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

This article is part of the Customs Compliance Guide

A bonded Canadian highway carrier is permitted to transport in-bond goods beyond the first point of arrival in Canada. Bonded status allows a carrier to move commercial goods to an inland CBSA office or sufferance warehouse, move goods in transit through Canada, and participate in certain programs or movements that require bonded status.<ref name="prepare">CBSA: Get a CBSA-issued carrier code - Get ready to enrol</ref>

How to become a bonded Canadian highway carrier

Training video: How to become a bonded Canadian highway carrier.

Bonded carriers and freight forwarders must post financial security with the Canada Border Services Agency (CBSA) so they may transport in-bond goods beyond the first point of arrival.<ref name="prepare" /> CBSA's highway carrier pages direct bonded highway carrier applications through the CBSA Assessment and Revenue Management (CARM) Client Portal (CCP).<ref name="highway">CBSA: Highway carriers</ref>

Why Become Bonded

A bonded Canadian highway carrier can:

move commercial goods to an inland CBSA office or sufferance warehouse for examination and/or release;
move goods in transit through Canada, such as lower 48 U.S. states to Alaska movements;
support customers that require bonded carrier service;
participate in programs or movements that require bonded status, such as certain trusted trader or marine overland workflows; and
apply for a one-time bonded transaction is less often needed because the carrier has ongoing bonded status.

Non-bonded carriers must generally have shipments released at the first point of arrival in Canada unless they obtain an applicable single trip authorization or other approval.<ref name="prepare" />

Before You Enrol

CBSA's current carrier code enrolment guidance tells carriers to prepare for enrolment by:

getting a shared secret code;
registering in CARM;
having a business number (BN9), RM account, and required CARM account access;
deciding whether the business needs a bonded or non-bonded carrier code; and
getting and submitting financial security if applying as bonded.<ref name="prepare" />

New carriers and freight forwarders must apply for a carrier code using their own portal BN9 account. Consultants cannot apply for a carrier code on behalf of clients using the consultant's BN9.<ref name="carm-start">CBSA: Get started with CARM</ref>

Becoming a Bonded Highway Carrier

To apply to become a bonded highway carrier with the CBSA, the carrier must:

register for an account in the CARM Client Portal;
complete the application in the CCP;
post security with the CBSA in the form of a Customs Bond or another accepted method listed in the applicable CBSA security policy; and
once the carrier code is issued, apply to transmit Advance Commercial Information (ACI) to the CBSA and complete the required testing process.<ref name="highway" /><ref name="hccap">CBSA: Highway carrier code application process</ref>

If the carrier already has a non-bonded carrier code, follow the current CBSA/CARM process for changing bonded status or linking the existing carrier code in CARM before attempting a new enrolment. Existing CBSA form pages, such as BSF722, still describe changing bonded status, but carriers should follow the current CARM and CBSA instructions for submission requirements.<ref name="bsf722">CBSA: BSF722 - Changing bonded status for existing CBSA carriers</ref>

Financial Security and the D120 Customs Bond

The amount of security required for bonded highway carrier operations is set by CBSA policy and varies by mode and operation. CBSA highway carrier guidance points carriers to Memorandum D3-4-2 for the required amount and to Memorandum D1-7-1 for posting security methods.<ref name="highway" /><ref name="d342">CBSA Memorandum D3-4-2: Highway pre-arrival and reporting requirements</ref><ref name="d171">CBSA Memorandum D1-7-1: Posting Security for Transacting Bonded Operations</ref>

CBSA's current carrier-security guidance directs bonded carriers to Form D120 Customs Bond.<ref name="d120">CBSA: D3-1-1 - bonded carrier security and Form D120</ref> The bond and supporting information should identify the legal business, security amount, surety or financial institution, signatures, seals, witnesses, and power of attorney information required by CBSA.

After Approval

Once CBSA approves the bonded carrier application and issues or updates the carrier code, the carrier must still complete the steps needed to transmit ACI/eManifest data to CBSA and pass the testing process before transmitting live highway pre-arrival data.<ref name="highway" />

The carrier may then review whether it qualifies for other programs or workflows, such as the Customs Self Assessment (CSA) program, Free and Secure Trade (FAST), or the Marine Overland Movement Program.

Official Resources

References