🔖 This article is part of the Customs Compliance Guide

How to Become a Bonded Canadian Carrier

The complete guide to obtaining bonded status, posting financial security, and navigating the CARM Client Portal.

Type: Customs Procedures Region: Canada (CBSA)

Overview

A Bonded Canadian Highway Carrier enjoys significant operational advantages over a non-bonded carrier. By posting financial security with the Canada Border Services Agency (CBSA), a bonded carrier is trusted to transport uncleared commercial goods into or through Canada.

Differences Between a Bonded and Non-Bonded Canadian Carrier.

Becoming a bonded carrier allows a trucking company to:

Move Goods Inland: Transport commercial shipments past the border to an inland CBSA office or a licensed Sufferance Warehouse for customs release.
Transit the Canadian Corridor: Move commercial merchandise "in transit" through Canada (e.g., transporting goods from the lower 48 U.S. states to Alaska) without paying duties.
Join Trusted Trader Programs: Apply for expedited clearance programs such as the Customs Self Assessment (CSA) and Free and Secure Trade (FAST) programs, which are often required by large automotive manufacturers and major importers.
Participate in Marine Overland: Move ocean freight inland via the Marine Overland Movement Program.

Financial Security (The D120 Customs Bond)

To operate as a bonded carrier, you must post financial security with the CBSA to cover the potential duties and taxes of the uncleared goods you are transporting. For highway carriers, this bond amount ranges from $5,000 to $25,000 (most highway carriers require the $25,000 bond).

Working with a Surety Company

You cannot simply write a check directly to the CBSA for a continuous bond. Highway carriers must initiate the bond application process through a CBSA-approved surety company or insurance broker (such as Hub International or Quickbond).

The surety will issue a D120 Customs Bond, which serves as your financial guarantee. The D120 bond must detail:

Whether it is a continuous bond or valid for a specific period of time.
Your company ownership details, legal name, and address.
Your 9-digit CRA Business Number (BN9). Foreign companies must register for a Non-Resident BN9.
Signatures of the owner/CEO and the surety company, along with embossed surety seals, witness signatures, and date of signature/power of attorney information.

The CARM Application Process (New for 2024+)

As of October 2024, the CBSA has modernized the bonded carrier application process. The legacy paper forms (BSF329-7 and BSF722) and the requirement to mail the original physical D120 bond to the Ottawa CBSA office have been retired. The entire process is now managed digitally through the CBSA Assessment and Revenue Management (CARM) Client Portal (CCP).

Scenario 1: Upgrading an Existing Non-Bonded Code

If you already possess a non-bonded highway carrier code, you do not need to apply for a new code. Instead:

1. Log into CARM: Access your business account in the CARM Client Portal.
2. Obtain a Bond: Work with your surety company to acquire your D120 Customs Bond.
3. Update Status: In the CCP, navigate to your program account profile, request to change your bonded status, and digitally post your financial security details. Once the surety and CBSA approve the electronic submission, your existing carrier code is upgraded to bonded status.

Scenario 2: Applying for a New Bonded Carrier Code

If you do not have a carrier code at all, you will apply from scratch within CARM:

1. Get a Business Number (BN9): Ensure you have a 9-digit Business Number from the Canada Revenue Agency (CRA).
2. Register in CARM: Create a user profile and register your business in the CARM Client Portal.
3. Transporter Enrolment: Navigate to the "Transporter Enrolment" section and select "Highway Carrier."
4. Post Security: During the enrolment flow, indicate that you are applying as a bonded carrier and input your D120 financial security details provided by your surety company.
5. Submit Documents: Upload your letters of incorporation, partnership documents, and proof of ownership directly into the portal.

Trusted Trader Programs: Once the CBSA approves your bonded status and issues your code, you are eligible to begin the application process for the Customs Self Assessment (CSA) and Free and Secure Trade (FAST) programs, which offer dedicated border lanes and streamlined accounting.

Official Resources & Forms

CARM Portal: CARM Client Portal Login
CBSA Guidelines: Becoming a Bonded Highway Carrier
Form D120: Customs Bond Form D120
Marine Overland: The Marine Overland Movement Program
Trusted Trader: Trusted Trader Programs (FAST & CSA)

Note: The historical requirement to mail original applications to the CBSA Commercial Operations Integrated Support at 191 Laurier Avenue West, Ottawa, has been replaced by the digital CARM onboarding process.