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

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This article is part of the Customs Compliance Guide
What is The Difference Between Bonded and Non-Bonded Canadian Highway Carriers?
A CBSA D120 Customs Bond Form

The main differences between a non-bonded and a bonded highway carrier is where Canadian-bound shipments can be released. A non-bonded carrier must release all shipments at the first point of arrival in Canada. A bonded carrier can transport in-bond commercial goods beyond the first point of arrival and must post financial security with CBSA. This includes the following:

  • transiting through Canada (that is, using Canada as a corridor, for example US to Canada to US)
  • moving goods inland to a CBSA office or sufferance warehouse
  • applying to the Customs Self Assessment program, the Free and Secure Trade (FAST) program
  • participating in the Marine Overland Movement Program

Although registering as a non-bonded highway carrier is a much simpler process, registering to become a bonded Canadian highway carrier to take advantage of the points mentioned above is much more involved. Please click here to learn the process of registering to become a Canadian bonded highway carrier.

As mentioned previously, there are limitations as a non-bonded highway carrier, as the non-bonded carrier can only take shipments that must be released at the first Canadian port of arrival and cannot bring commercial goods to be released inland. However, there are instances when a non-bonded highway carrier can bring commercial loads in-bond, such as with a Single Trip Bond.

Single Trip Bonds can be obtained by either CBSA or a Customs Broker, which gives a single trip bond authorization by either posting security with CBSA using cash or a certified cheque or through a Customs Broker that offers this service. Click here to learn how to get a single trip bond.

References

CBSA - Becoming a Bonded Highway Carrier - https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hc-tr-eng.html#_s2

CBSA - Single Trip Bond Authorization - https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hc-tr-eng.html#_s3

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