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

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{{note|This article is part of the [[Customs_Compliance_Guide_(CBP_and_CBSA)|Customs Compliance Guide]]|info}}
{{note|This article is part of the [[Customs_Compliance_Guide_(CBP_and_CBSA)|Customs Compliance Guide]]|info}}


{{#ev:youtube|xYU_Bmrxd6I|960|center|What is The Difference Between Bonded and Non-Bonded Canadian Highway Carriers?}}
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[[Image:D120-customs-bond.png|thumb|300px|right|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:
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<h1>Bonded vs. Non-Bonded Highway Carriers</h1>
<p>Understanding the difference in clearance locations, in-bond movement, and CBSA financial security requirements.</p>
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<span class="bc-article-pill"><i class="fas fa-truck-loading"></i> Type: Customs Procedures</span>
<span class="bc-article-pill"><i class="fas fa-flag-canada"></i> Region: Canada (CBSA)</span>
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* transiting through Canada (that is, using Canada as a corridor, for example US to Canada to US)
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* 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.
<h2 style="margin-top: 0;">Overview</h2>


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.
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'''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.
<p>The primary difference between a non-bonded and a bonded highway carrier is <strong>where</strong> Canadian-bound shipments can be released by the Canada Border Services Agency (CBSA).</p>


== References ==
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* <strong>Non-Bonded Carrier:</strong> Must have all shipments fully released by a customs broker at the <strong>First Point of Arrival (FPOA)</strong>—meaning directly at the border crossing. If the paperwork is not ready, the truck cannot cross into Canada.
* <strong>Bonded Carrier:</strong> Can transport "in-bond" commercial goods beyond the border to an inland destination. To hold this privilege, the carrier must post financial security with the CBSA to guarantee that duties and taxes will be paid if the goods fail to clear customs properly.


CBSA - Becoming a Bonded Highway Carrier - https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hc-tr-eng.html#_s2
[[Image:Non-bonded-v-bonded-diagram.jpg|800px|center|Differences Between a Bonded and Non-Bonded Canadian Carrier.]]
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CBSA - Single Trip Bond Authorization - https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hc-tr-eng.html#_s3
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Bonded Carrier Privileges</h2>
 
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<p>While registering as a non-bonded highway carrier is a simpler process, becoming a bonded Canadian highway carrier opens up significant logistical advantages and programs. A bonded carrier is permitted to:</p>
 
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* <strong>Move Goods Inland:</strong> Transport uncleared shipments to an inland CBSA office or a licensed <strong>[[Sufferance_Warehouse|Sufferance Warehouse]]</strong> for clearance, avoiding delays at the physical border.
* <strong>Transit Through Canada:</strong> Move goods "in-transit" using Canada as a corridor (e.g., picking up a load in Michigan, driving through Ontario, and dropping it off in New York).
* <strong>Join Trusted Trader Programs:</strong> Apply for expedited border clearance programs like the <strong>Customs Self Assessment (CSA)</strong> program and the <strong>Free and Secure Trade (FAST)</strong> program.
* <strong>Participate in Marine Overland:</strong> Engage in the Marine Overland Movement Program for moving ocean freight inland.
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">The CARM Application Process (New for 2024+)</h2>
 
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[[Image:D120-customs-bond.png|thumb|300px|right|A CBSA D120 Customs Bond Form]]
<p>As of October 2024, the CBSA has modernized its systems. Highway carriers no longer mail physical paper applications or original bonds to Ottawa. Instead, the entire process is managed digitally through the <strong>CBSA Assessment and Revenue Management (CARM) Client Portal (CCP)</strong>.</p>
 
<h3>Step 1: Obtain a Business Number (BN9)</h3>
<p>Before accessing CARM, you must have a 9-digit Business Number from the Canada Revenue Agency (CRA).</p>
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* <strong>Canadian Carriers:</strong> Can obtain a BN9 during the CARM registration process or directly from the CRA.
* <strong>U.S. / Non-Resident Carriers:</strong> Must contact the CRA directly (via phone or non-resident web form) to register for a BN9 <em>before</em> attempting to log into the CARM portal.
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<h3>Step 2: Enrol in the CARM Client Portal</h3>
<p>Log into the CARM Client Portal using a GCKey or Sign-In Partner. Create your user profile and link your business. Once inside, navigate to the "Transporter Enrolment" section to apply for your Carrier Code.</p>
 
<h3>Step 3: Post Financial Security (D120 Customs Bond)</h3>
<p>If you are applying to be a <strong>Bonded Carrier</strong>, you must obtain a <strong>D120 Customs Bond</strong> (typically a $25,000 security for highway carriers) through a CBSA-approved surety provider or insurance broker.
* <strong>The Digital Shift:</strong> You no longer mail the original D120 form to the CBSA. Instead, your surety provider will typically transmit the bond data directly to CARM via an API, or you will input the bond details into the CARM portal yourself to electronically link the financial security to your account.</p>
 
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<strong>Upgrading Status:</strong> If you currently hold a non-bonded carrier code, you do not need a new code to become bonded. You simply need to acquire a D120 bond from a surety and post the financial security to your existing account within the CARM Client Portal.
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Single Trip Bonds for Non-Bonded Carriers</h2>
 
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<p>Because non-bonded carriers are normally restricted to releasing commercial goods at the first Canadian port of arrival, exceptions are sometimes necessary (e.g., if a shipment is unexpectedly referred for an inland agricultural inspection).</p>
 
<p>In these instances, a non-bonded highway carrier can bring commercial loads in-bond using a <strong>Single Trip Bond (STB)</strong>.</p>
 
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* <strong>Through a Customs Broker:</strong> Many customs brokers offer a service where they utilize their own bond security to authorize the single trip for a fee.
* <strong>Through the CBSA:</strong> The carrier can post security directly with the CBSA at the border using cash or a certified cheque for that specific trip.
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<h2 style="margin-top: 40px; border-bottom: 2px solid #eee; padding-bottom: 10px;">Official Resources</h2>
 
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* <strong>CBSA Guidelines:</strong> [https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hc-tr-eng.html Becoming a Bonded Highway Carrier]
* <strong>CARM Portal Login:</strong> [https://ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca/en/homepage CARM Client Portal (CCP)]
* <strong>CRA Registration (Non-Residents):</strong> [https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/registering-your-business/non-resident-registration.html Non-Resident Business Number Registration]
* <strong>CBSA Guidelines:</strong> [https://www.cbsa-asfc.gc.ca/services/carrier-transporteur/hc-tr-eng.html#_s3 Single Trip Bond Authorization]
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[[Category:Customs Compliance Guide]]
[[Category:Customs Compliance Guide]]
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