Stateside Consulting ::: Services

A bonded carrier posts security with the CBSA to cover the following situations:

Movement of goods to a CBSA office inland (not located at the border) for release of the shipment;
Movement of goods “in transit” through Canada. The bonded carrier uses Canada as a corridor, or a shortcut, by starting from a point outside Canada and then transiting through Canada to another point outside Canada (e.g. U.S. → Canada → U.S.). The goods in transit are not released in Canada;
Application to the Customs Self Assessment program and/or the Free and Secure Trade (FAST) program; or
Application to the post-audit program.

Becoming a bonded carrier

Security must be posted with the CBSA in the form of cash, certified cheque or a bond. The security amount is normally $25,000.00 and in the form of a Surety Bond will, in most cases, cost $350.00 per year.
Prepare and/or complete the following:

Form E370 - Application to Transact Bonded Carrier and Forwarding Operations
Form D120 - Customs Bond (List of acceptable bonding establishments)

Mail forms to the CBSA.
After these steps are successfully completed, you will receive your assigned bonded carrier code, instructions and printing requirements.

Note: Bonded highway carriers have 30 days after receiving their carrier code to obtain bar-coded labels. After 30 days, an administrative penalty of $1,000 will be imposed on the carrier if the carrier does not use bar-coded labels when arriving at the Canadian border.

Changes to existing carrier codes

If your business is moving, you must notify the CBSA as soon as possible. Please indicate the name of your business and your new postal address, telephone number and carrier code.

If your business is changing its name, you must forward all relevant documentation to the CBSA as soon as possible. Bonded carriers who use bonds as security must forward an original of the bond rider / endorsement provided by the Canadian insurance company or Canadian financial institution to the CBSA. Please indicate your carrier code, the previous name of your business, the business address, a contact name and telephone number.

Under the Customs Act and the Regulations respecting the Transportation of Goods, carriers are liable for duties and taxes on goods carried in bond within their system, and have to place a bond with the CBSA to ensure payment. If the duties and taxes are not paid, the CBSA traces the outstanding cargo. The carrier has to prove then that the duties and taxes were paid on the goods, or that the goods were exported or put in a sufferance or bonded warehouse.

Bonds - Canadian Bonded Carrier

Canadian Bonded Carrier Status

Becoming a bonded carrier

Changes to existing carrier codes