Bonded Carrier Bond — Canada Customs Bond

If your trucking company or transportation business moves imported goods that have not yet cleared customs, you need a bonded carrier bond. It is one of the essential customs bonds required by the Canada Border Services Agency (CBSA), and without one, you are legally prohibited from transporting in-bond shipments within Canada.

In-bond transportation is the movement of imported goods between customs-controlled points — a border crossing to a sufferance warehouse, a port to a bonded warehouse, or between bonded facilities — before duties and taxes have been paid. The bonded carrier bond guarantees the CBSA that these goods will arrive at their authorized destination without being diverted, tampered with, or lost.

This guide covers what a bonded carrier bond is, who needs one, how the bond amount is set, what it costs, and how to get one.

What Is a Bonded Carrier Bond?

A bonded carrier bond is a surety bond — a three-party financial guarantee — between the carrier (the principal), the CBSA (the obligee), and a surety company (the guarantor). It guarantees that the carrier will transport goods under customs control in accordance with the Customs Act and all applicable CBSA regulations.

When goods are imported into Canada, they do not always clear customs at the point of arrival. In many cases, goods arrive at a border crossing or port of entry and need to be transported to another location — a sufferance warehouse, a customs bonded warehouse, an inland examination facility, or another port — before being formally entered and duty-paid. This movement of goods while they remain under customs control is called in-bond transportation.

The carrier that performs this movement must be authorized by the CBSA. That authorization comes in the form of a bonded carrier license, and the license requires a surety bond. The bond provides financial assurance that the carrier will deliver goods to the correct destination and that any duties, taxes, or penalties arising from a failure to do so will be covered.

Bonded carrier operations in Canada are governed by the Transportation of Goods Regulations under the Customs Act.

Who Needs a Bonded Carrier Bond?

A bonded carrier bond is required for any highway carrier that wants to transport in-bond goods within Canada. This includes:

• Trucking companies that pick up containers or shipments at ports of entry and deliver them to sufferance or bonded warehouses
• Long-haul carriers that transport in-bond goods between cities — for example, from a border crossing in Southern Ontario to a bonded warehouse in Toronto or Montreal
• Specialized carriers that handle goods requiring in-bond movement, such as high-value shipments or controlled goods
• Drayage operators that provide short-haul transportation between ports, rail yards, and warehouse facilities

If your trucks carry goods that have not yet cleared customs, you need to be bonded. A carrier without a bond cannot legally accept in-bond freight. Shippers, customs brokers, and freight forwarders will not entrust in-bond goods to an unbonded carrier because doing so exposes them to regulatory risk and potential liability.

Non-Bonded Carriers

If you are a highway carrier that only transports goods that have already cleared customs and been duty-paid, you do not need a bonded carrier bond for those shipments. The bond requirement applies specifically to in-bond movements where goods remain under CBSA control.

However, many carriers find that becoming bonded opens up a significant portion of the freight market. If you serve importers, freight forwarders, or customs brokers, being bonded is often a competitive necessity.

How the Bond Amount Is Determined

The CBSA sets the required bond amount for bonded carriers based on the carrier’s operations and the estimated risk associated with the goods they will transport.

Typical Bond Amounts

For most highway carriers, the CBSA requires bonds in the following range:

Carrier Profile	Typical Bond Amount
Small/regional carrier	$25,000
Mid-size carrier	$25,000 - $50,000
Large or high-volume carrier	$50,000 - $100,000+

The standard starting point for most bonded carriers is $25,000. The CBSA may require a higher amount if your operations involve high-value goods, large volumes, or routes that carry elevated risk.

Factors That Influence the Amount

• Volume of in-bond shipments — more shipments mean more goods under customs control at any given time
• Value of goods transported — higher-value cargo may warrant a larger bond
• Geographic coverage — carriers operating across multiple provinces or on longer routes may require more coverage
• Compliance history — carriers with prior infractions or compliance issues may face higher bond requirements

The CBSA can review and adjust your bond requirement at any time. If your operations grow, be prepared for a potential increase.

How Much Does a Bonded Carrier Bond Cost?

The cost of a bonded carrier bond is the annual premium paid to the surety company that issues the bond. You do not post the full bond amount in cash — you pay a percentage of it each year.

Premium Rate Ranges

Premiums for bonded carrier bonds typically range from 1% to 2.5% of the bond amount per year. For the most common bond amounts in the $25,000 to $50,000 range, minimum annual premiums often apply.

Cost Examples

Bond Amount	Estimated Annual Premium
$25,000	$400 - $625 (minimum premium may apply)
$50,000	$500 - $1,250
$100,000	$1,000 - $2,500

Most bonded carriers with standard operations and reasonable credit will pay between $400 and $1,000 per year for their bond. This is a modest cost relative to the revenue opportunity that in-bond transportation represents.

Factors That Affect Your Premium

• Bond amount — larger bonds may attract lower percentage rates, but absolute premiums are higher
• Credit history — the personal credit of the business owner(s) is the primary underwriting factor for smaller bonds
• Financial statements — for larger bonds, the surety may review your company’s financials
• Operating history — established carriers with clean records pay less
• Claims history — any prior bond claims significantly increase premium rates or may make bonding difficult

What You Need to Apply

The documentation required for a bonded carrier bond depends on the bond amount and the complexity of your operations.

For Bonds Under $50,000

The underwriting process is straightforward:

• Business name and legal entity type — corporation, partnership, or sole proprietorship
• Business Number (BN9) as registered with CRA
• Description of operations — types of goods transported, geographic coverage, fleet size
• Personal information for the business owner(s)
• Credit check authorization — the surety will run a personal credit check on the principal owner(s)
• CBSA correspondence — any documentation from CBSA regarding your bonded carrier license application or required bond amount

For bonds in this range, approval is primarily based on personal credit. No financial statements are typically required.

For Bonds Over $50,000

In addition to the above, the surety may require:

• Business financial statements — year-end statements, preferably reviewed by an accountant
• Personal net worth statements for principal owners
• Fleet and operations details — number of trucks, employees, and annual revenue

How to Get a Bonded Carrier Bond

The process for obtaining a bonded carrier bond is closely linked to the CBSA’s bonded carrier licensing process.

Step 1: Apply for a Bonded Carrier License

Contact the CBSA to initiate the bonded carrier license application. The CBSA will assess your operations and provide the required bond amount. You will need to meet their operational requirements, including vehicle standards and driver qualifications.

Step 2: Apply for the Surety Bond

Once you know the required bond amount, apply with a surety provider. Provide your business details, operational information, and the CBSA-required bond amount.

You can get a quote from Bondrail to start the process.

Step 3: Underwriting Review

The surety company reviews your application. For standard bonds of $25,000 to $50,000 with good applicant credit, expect approval within two to four business days.

Step 4: Bond Issuance

Once approved, the surety issues the bond. The bond document is provided to the CBSA as part of your bonded carrier license application.

Step 5: License Activation

With the bond in place, the CBSA completes its review of your license application. Once the license is issued, you are authorized to transport in-bond goods within Canada.

Step 6: Maintain the Bond

Your bonded carrier bond is continuous — it renews annually and remains in force until cancelled. You must maintain the bond for as long as you hold your bonded carrier license. If the bond is cancelled, your license will be suspended.

In-Bond Transportation Rules

Understanding the rules governing in-bond transportation is essential for bonded carriers. Non-compliance can result in penalties, bond claims, and loss of your license.

Key Requirements

• Goods must be transported directly to the authorized destination. Diversion, unauthorized stops, or splitting of shipments without CBSA approval is prohibited.
• Goods must arrive intact. The carrier is responsible for the physical security of the goods during transit. Seals must remain unbroken.
• Documentation must be complete. Each in-bond movement requires proper documentation, including the cargo control document (CCD) that tracks the goods through the customs system.
• Time limits apply. In-bond goods must reach their destination within the time frame specified by the CBSA, typically within a few days of departure.
• Reporting obligations. The carrier must report arrival at the destination to the CBSA promptly.

Consequences of Non-Compliance

If goods are lost, stolen, diverted, or delivered late, the CBSA may:

• Assess penalties against the carrier
• Make a claim against the bond for the duties and taxes that would have been payable on the missing or diverted goods
• Suspend or revoke the carrier’s license
• Increase the bond requirement for future operations

A bond claim is triggered when the carrier fails to deliver goods to their authorized destination and the resulting duties, taxes, or penalties cannot be collected directly from the carrier. The surety pays the CBSA and then seeks full reimbursement from the carrier under the indemnity agreement.

CARM and Bonded Carrier Bonds

The CARM system has modernized how bonded carrier bonds are managed alongside other customs bonds. The bond filing process is now electronic, reducing paperwork and improving processing times. For more on how CARM affects financial security in general, see our CARM financial security guide.

Get Your Bonded Carrier Bond

A bonded carrier bond is the gateway to transporting in-bond goods in Canada. Without one, you are shut out of a significant segment of the freight market. With one, you can serve importers, customs brokers, and freight forwarders who need reliable in-bond transportation.

Get a quote for your bonded carrier bond — most bonds are issued within two to five business days.

For more on customs bonds in Canada, see our complete customs bond guide.