Enrol for Release Prior to Payment
Get ready to enrol
What you need to know before you enrol for Release Prior to Payment (RPP) and post your financial security.
How financial security is calculated
The CARM system calculates the amount of financial security you will need during the RPP enrolment process. This amount is based on the highest monthly accounts receivable you have with the CBSA over the past 12 months. Refer to How to enrol for RPP to learn where the amount of financial security you need can be found in the portal.
Note: The required amount will be updated annually, based on the highest monthly accounts receivable recorded between of the previous year to of the current year.
Every year, on , importers enrolled for RPP will receive a notification in the CARM Client Portal confirming their updated required financial security amount.
If the revised security amount is lower, you may consider reducing the security agreement you have with your financial security provider. This is optional.
If the revised amount is higher, you must update your financial security amount by of the next year to continue to benefit from RPP. This can be done directly with your financial security provider in the case of a written security or by increasing your security deposit amount in the portal.
Types of financial security
This section explains how the type of financial security you choose affects how much you need to post.
Financial security received prior to
Paper security agreements and deposits received before were converted and transferred to the CARM system.
The amount of financial security transferred may not be enough to meet the required security amount reflected in the CARM system when you enrol. If it is not enough, you have 3 options:
- Post additional financial security using a written security agreement or a security deposit
- Ask your financial security provider to increase the existing security in the CARM system (this is not available for paper bonds)
- Cancel and replace your existing security agreement with a new electronic one for the proper amount
New financial security options
If you have not yet done so, you can electronically post either of these 2 types of security in the CARM system.
In exceptional circumstances listed in subsection 5(3) of the Financial Security (Electronic Means) Regulations, you may post security using:
- certified cheques and money orders
- a security agreement in paper format
Notes:
- All monetary amounts are calculated in Canadian dollars
- Importers must seek approval from the CBSA prior to submitting a non-electronic form of financial security
- Consult "Other forms of financial security" in Memorandum D17-5-2: Financial Security for Release Prior to Payment
Written security agreement
As an importer, you must obtain a written security agreement from a financial security provider before you attempt to post it in CARM. You cannot request a written security agreement using CARM. However, you and your financial security provider can use CARM to post the security agreement once you have it.
For more, refer to How to post financial security.
Amount to post: The system-calculated security requirement is equal to the highest of your monthly accounts receivable (including GST, duties and surtax) in the previous 12 months at the time you enrolled for RPP.
When posting financial security in the form of a written security agreement, the agreement must correspond to at least 50% of the system-calculated amount.
Minimum amount required: $5,000 per importer program account (BN15).
You may choose to obtain a single financial security for multiple importer program accounts associated with a business (BN9). However, you will need to distribute the security needed based on the amount required for each importer program account (BN15).
To allocate a single security to multiple importer program accounts, you need to create a security agreement for each account, using the same security number that was provided by the financial security provider. Once the security is approved by the financial security provider in CARM, you cannot make any changes.
Similarly, a financial security provider can allocate the single agreement to multiple accounts using either application programming interface (API) or CARM Client Portal. After it's been validated in CARM, the provider can only make changes to the allocation using API.
In the case of a paper security agreement (for example, legacy paper bonds received prior to ), the CBSA can allocate the security based on instructions from you, the importer, and your financial security provider. The provider can also make changes via API.
Maximum amount: $10 million per importer program account (BN15).
An importer may choose to post a higher security amount if their accounts receivable exceeds the maximum amount.
Security deposit
Amount to post: 100% of the highest monthly accounts receivable (including GST, duties and surtax) within the last 12 months.
Find a financial security provider
Financial security providers can issue different types of security. If they register their business in the CARM system, they can provide financial security electronically.
The CBSA will also accept written security agreements from any of the financial security providers listed here:
- Office of the Superintendent of Financial Institutions
- Search for businesses that are approved to carry on the fidelity or surety class of insurance business in Canada: Office of the Superintendent of Financial Institutions.
- Provinces and territories
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Search for entities authorized by the laws of a province or territory, either through licensing or other means, to conduct insurance business in the fidelity or surety class:
- Superintendent of Insurance: Alberta
- Superintendent of Insurance: Newfoundland and Labrador
- Superintendent of Insurance: Northwest Territories
- Superintendent of Insurance: Nova Scotia
- Superintendent of Insurance: Nunavut
- Superintendent of Insurance: Prince Edward Island
- Financial Services Authority (British Columbia)
- Financial Institutions Regulation Branch (Manitoba)
- Financial and Consumer Services Commission (New Brunswick)
- Financial Services Regulatory Authority (Ontario)
- Autorité des marchés financiers (Québec)
- Financial and Consumer Affairs Authority (Saskatchewan)
- Government of Yukon (Yukon)
- Payments Canada
- Payments Canada members
- Corporations that accept insured deposits
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Search corporations that are insured to accept deposits by Canada Deposit Insurance Corporation (CDIC) and Autorité des marchés financiers:
- Credit unions and co-operatives
- You may use a security provided by any corporation, association or federation incorporated or organized as a credit union or co-operative credit society according to subsection 137(6)(b) of the Income Tax Act.
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