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 |
Bonded vs. Non-Bonded Highway Carriers
Understanding the difference in clearance locations, in-bond movement, and CBSA financial security requirements.
Overview
The primary difference between a non-bonded and a bonded highway carrier is where Canadian-bound shipments can be released by the Canada Border Services Agency (CBSA).
- Non-Bonded Carrier: Must have all shipments fully released by a customs broker at the First Point of Arrival (FPOA)—meaning directly at the border crossing. If the paperwork is not ready, the truck cannot cross into Canada.
- Bonded Carrier: 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.
Bonded Carrier Privileges
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:
- Move Goods Inland: Transport uncleared shipments to an inland CBSA office or a licensed Sufferance Warehouse for clearance, avoiding delays at the physical border.
- Transit Through Canada: 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).
- Join Trusted Trader Programs: Apply for expedited border clearance programs like the Customs Self Assessment (CSA) program and the Free and Secure Trade (FAST) program.
- Participate in Marine Overland: Engage in the Marine Overland Movement Program for moving ocean freight inland.
The CARM Application Process (New for 2024+)
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 CBSA Assessment and Revenue Management (CARM) Client Portal (CCP).
Step 1: Obtain a Business Number (BN9)
Before accessing CARM, you must have a 9-digit Business Number from the Canada Revenue Agency (CRA).
- Canadian Carriers: Can obtain a BN9 during the CARM registration process or directly from the CRA.
- U.S. / Non-Resident Carriers: Must contact the CRA directly (via phone or non-resident web form) to register for a BN9 before attempting to log into the CARM portal.
Step 2: Enrol in the CARM Client Portal
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.
Step 3: Post Financial Security (D120 Customs Bond)
If you are applying to be a Bonded Carrier, you must obtain a D120 Customs Bond (typically a $25,000 security for highway carriers) through a CBSA-approved surety provider or insurance broker.
- The Digital Shift: 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.
Upgrading Status: 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.
Single Trip Bonds for Non-Bonded Carriers
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).
In these instances, a non-bonded highway carrier can bring commercial loads in-bond using a Single Trip Bond (STB).
- Through a Customs Broker: Many customs brokers offer a service where they utilize their own bond security to authorize the single trip for a fee.
- Through the CBSA: The carrier can post security directly with the CBSA at the border using cash or a certified cheque for that specific trip.
Official Resources
- CBSA Guidelines: Becoming a Bonded Highway Carrier
- CARM Portal Login: CARM Client Portal (CCP)
- CRA Registration (Non-Residents): Non-Resident Business Number Registration
- CBSA Guidelines: Single Trip Bond Authorization