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What Is The Difference Between A Bonded And Non-Bonded Canadian Highway Carrier (DIY Customs Consulting)

Last updated 5 August 2026

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This article is part of the Customs Compliance Guide
A CBSA D120 Customs Bond Form

The main difference between a non-bonded and bonded Canadian highway carrier is where Canadian-bound shipments can be released. A non-bonded highway carrier must have shipments released at the first point of arrival in Canada, while a bonded highway carrier can transport in-bond commercial goods beyond the first point of arrival.[1]

A bonded highway carrier must post financial security with the Canada Border Services Agency (CBSA). CBSA states that bonded highway carriers must post financial security in the amount of $5,000 to $25,000, depending on the operation, to move goods inland, move goods in transit through Canada, or apply to certain trusted-trader programs.[1]

Video Tutorial

What is the Difference Between Bonded and Non-Bonded Canadian Highway Carriers?

What a Bonded Carrier Can Do

A bonded Canadian highway carrier can move goods in situations that are not available to a non-bonded carrier, including:

  • Transiting through Canada, such as using Canada as a corridor for a U.S.-to-Canada-to-U.S. movement.
  • Moving goods inland to a CBSA office or sufferance warehouse.
  • Applying to programs such as Customs Self Assessment (CSA) and Free and Secure Trade (FAST), where the carrier meets the program requirements.
  • Participating in the Marine Overland Movement Program.

CBSA explains that bonded highway carriers may transport in-bond goods beyond the first point of arrival and between points in Canada, and may use Canada as a corridor for in-transit movements where the goods are not released in Canada.[1]

Registering as Bonded

Registering as a non-bonded highway carrier is usually simpler than becoming bonded. CBSA directs highway carrier applicants to register for an account in the CARM Client Portal, complete the application in CARM, and then apply to transmit Advance Commercial Information (ACI) after receiving the carrier code.[2]

To become a bonded highway carrier, the carrier must also post security with CBSA in the form of a Customs Bond or another accepted method listed by CBSA. CBSA states that to become a bonded highway carrier, the applicant must register for a CARM Client Portal account, complete the application in CARM, determine the required amount of security, and post financial security.[1]

CBSA lists acceptable security options such as electronic surety bonds and electronic cash security through the CARM Client Portal.[1] Carriers should work with their surety provider, customs broker, or advisor to confirm the correct security amount and application details before submitting the bonded application.

D120 Customs Bond

The D120 Customs Bond is the CBSA bond form historically used for customs security. CBSA publishes Form D120 as the "Customs Bond" form.[3]

With CARM, carriers should follow CBSA's current instructions for electronic surety bonds or cash security through the CARM Client Portal. If a carrier or surety is using a D120-related process, they should confirm current requirements with CBSA because security procedures can change as CARM processes evolve.

Single Trip Bonds

Because a non-bonded carrier normally cannot move commercial goods inland for release, a Single Trip Bond may be used in limited situations where a specific shipment must move in-bond. CBSA describes Single Trip Bond authorization as an option for a particular movement when a non-bonded carrier cannot obtain release at the first point of arrival and must move the goods inland.[1]

CBSA states that a single trip authorization may be acquired by posting security with CBSA using cash or certified cheque, or by engaging a customs broker that provides this service.[4] Applications for a single trip authorization are filed at the first point of arrival in Canada using Form E370.[4]

Carriers should confirm the required process with CBSA, the customs broker, or the party arranging the bond before moving freight in-bond.

Usage in BorderConnect

In BorderConnect ACI eManifest software, bonded status affects which shipment movements a carrier can legally perform. For example, a carrier moving goods beyond the first point of arrival, moving goods to an inland CBSA office or sufferance warehouse, or moving goods in transit through Canada generally needs bonded-carrier authority or an approved single trip authorization.

BorderConnect can be used to create and transmit ACI eManifests for shipment types that depend on the carrier's bonded or non-bonded status, such as In Bond or In-Transit movements. The carrier must make sure the carrier code and movement type entered in BorderConnect match the authority and security actually held by the carrier.

BorderConnect does not issue bonded status, carrier codes, customs bonds, or single trip authorizations. Those must be obtained through CBSA, the CARM Client Portal, or the authorized customs broker or surety process before the carrier uses BorderConnect to transmit the movement.

Common Mistakes

  • Assuming a non-bonded carrier can move unreleased goods inland without a single trip authorization.
  • Filing an in-bond or in-transit ACI shipment in BorderConnect before confirming the carrier's bonded authority.
  • Confusing a CBSA carrier code with bonded status.
  • Letting financial security expire or become invalid.
  • Sending the driver inland before the shipment is properly authorized for in-bond movement.
  • Using the wrong carrier code for a bonded movement.
  • Assuming BorderConnect, a customs broker, or a shipper can make the carrier bonded without CBSA approval.

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 CBSA - Highway carriers
  2. ↑ CBSA - Highway carrier code application process
  3. ↑ CBSA Form D120 - Customs Bond
  4. ↑ 4.0 4.1 CBSA - Commercial carriers
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