CARM Financial Security: Customs Bond vs Cash Deposit

If you import goods into Canada, CARM has fundamentally changed how you interact with the CBSA. The biggest operational change for importers that want Release Prior to Payment (RPP) is that they must now post their own financial security rather than rely on a customs broker’s RPP security. Importing without RPP is still possible, but it means paying duties and taxes before release.

This guide explains exactly what financial security is under CARM, compares your two options — surety bond and cash deposit — and walks you through the steps to get compliant.

What Is CARM?

CARM stands for CBSA Assessment and Revenue Management. It is the Canada Border Services Agency’s modernized system for assessing and collecting duties, taxes, and fees on imported goods. CARM became the official system of record on October 21, 2024, replacing legacy customs accounting processes.

CARM introduces several major changes for importers:

• A self-service portal — the CARM Client Portal (CCP) — where importers manage their accounts, review statements of account, file adjustments, and post financial security.
• Direct importer accountability — importers are now directly responsible for their own customs compliance, including posting financial security and managing their Release Prior to Payment (RPP) privileges.
• Electronic-first processes — financial security is normally posted electronically, either by the security provider via API or by the importer through the CARM Client Portal. Non-electronic security can still be accepted in exceptional circumstances with prior CBSA approval, but the standard path is digital.
• Standardized trade chain roles — CARM formalizes the relationships between importers, customs brokers, and trade consultants with explicit delegations of authority.

For most importers, the single most important change is what happened to financial security.

What Changed for Importers

Before CARM, many importers never thought about financial security. Their customs broker carried a blanket bond that covered all of the broker’s clients. An importer could bring goods into Canada under the broker’s bond, pay duties later, and never interact with CBSA’s financial security requirements directly.

That arrangement no longer exists.

Under CARM, importers that want to participate in the Release Prior to Payment (RPP) program must post their own financial security. Your customs broker’s RPP security no longer covers your commercial imports.

RPP is what allows your goods to be released from the border before you pay duties and taxes. Without RPP, importers generally need to complete a C-type CAD and pay duties and taxes before release. For most commercial importers, losing RPP means:

• Shipments stuck at the border waiting for payment processing
• Warehousing and demurrage charges accumulating daily
• Production delays if you depend on imported materials or components
• Missed delivery commitments to your own customers

The practical impact is severe. If you import commercial goods into Canada with any regularity and want to keep normal RPP-based operations in place, posting financial security is generally necessary.

Your Two Options: Surety Bond vs Cash Deposit

CBSA gives importers two ways to post financial security:

1. Surety bond — a guarantee issued by an approved surety company, posted for 50% of your required security amount
2. Cash deposit — a direct payment to CBSA for 100% of your required security amount

Both options fulfill the financial security requirement and activate your RPP privileges. However, the financial and operational implications are dramatically different.

A customs bond is the option chosen by the vast majority of Canadian importers, and for good reason. It requires half the security amount, preserves your working capital, and costs a fraction of what a cash deposit locks up.

Detailed Comparison: Surety Bond vs Cash Deposit

Factor	Surety Bond	Cash Deposit
Amount required	At least 50% of the system-calculated amount	100% of the system-calculated amount
Out-of-pocket cost	Provider pricing varies by surety and applicant	Full deposit amount locked with CBSA
Working capital impact	Minimal — premium is a small operating expense	Severe — full amount removed from your cash flow
Minimum amount	$5,000 per RM account	System-calculated requirement, currently subject to a $5,000 minimum
Maximum amount	$10,000,000 per RM account	System-calculated requirement, currently subject to a $10,000,000 maximum
Speed to activate	Timing varies by provider and CBSA processing	Depends on payment and CBSA processing
CARM registration	Surety provider registers bond via API, or importer submits through the portal	Importer submits payment through the portal
Annual review	Surety adjusts bond amount at renewal based on CBSA recalculation	Importer must top up or can request refund of excess
Flexibility	Easy to adjust bond amount up or down at renewal	Funds locked — refund process for reductions can be slow
If duties increase	Surety issues a rider to increase bond; small additional premium	Must deposit additional cash immediately
Return of funds	No deposit to return — the security agreement is cancelled or expires according to its terms	Refund timing depends on CBSA processing

For an importer whose highest monthly account receivable balance was $200,000, the comparison looks like this:

• Written security agreement: Required amount is at least $100,000. Your out-of-pocket cost is the premium or fee charged by the financial security provider.
• Cash deposit: Required amount is $200,000. That full amount is transferred to CBSA and unavailable to your business until it is released or refunded.

The math speaks for itself. A surety bond costs pennies on the dollar compared to a cash deposit.

How to Determine Your Required Amount

CBSA calculates your required financial security amount based on your import history. Here is how the calculation works:

The formula: CBSA looks at your highest monthly accounts receivable (AR) over the prior 12-month review period (October 20 to October 19). For RPP, CBSA states that the system-calculated amount is based on your highest monthly accounts receivable over the last 12 months, including GST, duties and surtax. The updated required amount is communicated on October 20, and if the revised amount is higher you must update your financial security by January 15 of the next year to continue benefiting from RPP.

• For a written security agreement, the agreement must correspond to at least 50% of the system-calculated amount
• For a cash deposit, the required amount is 100% of your highest monthly AR balance over the review period
• The minimum bond amount is $5,000 per Revenue Management (RM) account
• The maximum bond amount is capped at $10,000,000 per RM account

Where to find your number:

1. Log in to the CARM Client Portal
2. Navigate to your financial security section
3. CBSA displays your calculated required amount based on your import history
4. If you are a new importer, confirm the amount shown in the portal with your financial security provider before posting the agreement or deposit

If your actual import volumes differ significantly from the calculated amount — for example, if you are scaling up your business — you should work with your surety provider to ensure your bond amount provides adequate coverage. Insufficient financial security can result in a hold on your RPP privileges.

You can estimate your required amount before logging in using our duty calculator, which provides a rough figure based on your expected import volumes and commodity types.

How to Post a Surety Bond in CARM

Posting a surety bond through CARM is a straightforward process, but it involves coordination between you, your surety provider, and the CARM system. Here are the steps:

Step 1: Contact a surety provider

Reach out to an approved surety bond provider. You will need a company that is authorized to issue customs bonds in Canada and is integrated with the CARM electronic filing system. Bondrail handles the entire process online — you can join the waitlist in minutes.

Step 2: Provide your business information

Your surety provider will need:

• Your Business Number (BN) and RM account number from CBSA
• Your CARM Client Portal account details
• Basic company information (legal name, address, contact details)
• Your required financial security amount (from the CARM portal)
• Financial information for underwriting (depending on the bond amount, this may be minimal for smaller bonds)

Step 3: Get approved and bond issued

The financial security provider underwrites your application and, once approved, issues the security agreement. In normal circumstances, the agreement is posted electronically through CARM.

Step 4: Surety registers the bond in CARM

Your surety provider can register the bond electronically via API integration with the CBSA system, or you can submit the written security agreement yourself through the CARM Client Portal. In practice, most surety providers handle the registration on your behalf. Either way, the registration links the bond to your specific RM account and BN.

Step 5: RPP privileges activated

Once CBSA processes the security registration and your RPP enrolment is complete, you can verify the status in your CARM Client Portal account.

The time needed to put a written security agreement in place depends on your provider’s underwriting process and CBSA processing.

How to Post a Cash Deposit

If you choose to post a cash deposit instead, the process is handled entirely through the CARM Client Portal:

Step 1: Log in to the CARM Client Portal

Access the portal at carm-acrd.cbsa-asfc.gc.ca using your verified account credentials.

Step 2: Navigate to financial security

Find the financial security section of your account, where CBSA displays your required deposit amount (100% of the calculated security requirement).

Step 3: Submit payment

Initiate the payment through the portal. Cash deposits are normally submitted electronically through the portal. Payment methods and processing times depend on CBSA’s current payment infrastructure.

Step 4: Wait for processing

Once your payment clears and CBSA processes it, your RPP privileges are activated. Processing times can vary.

Step 5: Verify RPP status

Confirm in the portal that your financial security has been accepted and your RPP privileges are active.

While the cash deposit process does not involve a third-party security provider, the full deposit amount is removed from your business until it is released or refunded by the CBSA.

Annual Review Process

CBSA does not set your financial security amount once and forget it. There is a mandatory annual review.

When it happens: The annual review date is October 20 each year. CBSA recalculates each importer’s required financial security amount based on the most recent 12 months of accounts receivable activity.

What CBSA recalculates: The agency looks at the accounts receivable reflected in CARM for the preceding 12-month review period and determines whether your current financial security amount is still adequate.

If your required amount increases:

• Written security agreement holders: Work with your financial security provider to increase the amount reflected in CARM before the January 15 deadline if the revised amount is higher.
• Cash deposit holders: You must submit an additional deposit to CBSA to cover the difference. This means more cash removed from your business.

If your required amount decreases:

• Written security agreement holders: If the revised amount is lower, you may choose to reduce the agreement with your provider. This is optional.
• Cash deposit holders: You can request a refund of the excess amount from CBSA.

If you fail to adjust: If your revised amount is higher and you do not update your financial security by January 15, you risk losing access to RPP until the shortfall is corrected.

The annual review is one of the main practical differences between a written security agreement and a cash deposit. With a written security agreement, you coordinate the updated amount with your provider. With a cash deposit, every increase means posting additional cash to the CBSA.

What Happens If You Do Not Post Financial Security

The consequences of failing to post financial security under CARM are immediate and operationally disruptive.

Loss of RPP privileges: Without valid financial security on file, you cannot participate in Release Prior to Payment.

Goods held at the border: Every shipment you import will be held at the port of entry. CBSA will not release your goods until all duties, taxes, and fees are paid in full. This means:

• Payment before release — you must pay the exact assessed amount before your goods move
• No accounting period — instead of the normal billing cycle where you receive a statement and pay later, everything is due immediately
• Port congestion and delays — your goods occupy space at the port while you arrange payment, incurring storage and handling fees

Supply chain disruption: For businesses that depend on a predictable flow of imported goods, the loss of RPP creates a cascading failure:

• Manufacturing lines waiting on raw materials
• Retail inventory gaps during peak seasons
• Contractual penalties for missed delivery dates
• Strained relationships with customers and partners

Financial penalties: Beyond the direct costs of delays and storage, overdue accounts may be subject to interest, and late-payment penalties resumed on January 31, 2026.

The cost of non-compliance dwarfs the cost of a surety bond. An annual bond premium of a few thousand dollars protects your business from disruptions that can cost tens or hundreds of thousands of dollars in a single month.

CARM Transition Timeline

Understanding the timeline helps put the urgency in context:

October 21, 2024 — CARM external launch

CARM went fully live. The new system replaced legacy customs accounting processes. All importers were expected to register in the CARM Client Portal and begin managing their accounts through the new system.

October 21, 2024 to May 20, 2025 — Transition Period

CBSA provided a seven-month transition window. During this period, importers could continue operating under transitional arrangements while they set up their own financial security. The transition period was intended to give importers time to:

• Register in the CARM Client Portal
• Understand their financial security requirements
• Arrange a surety bond or cash deposit
• Complete the electronic posting process

May 20, 2025 — Transition Deadline

The transition period ended. After this date, importers without their own financial security on file lost RPP privileges. There was no extension. Importers who missed the deadline found their goods held at the border until they completed the financial security posting process.

October 20, 2025 — First annual RPP review under the current review cycle

CBSA conducted the first annual recalculation of required financial security amounts for all importers, based on their actual import activity since CARM’s launch.

Ongoing — Annual Reviews Every October 20

Each year, CBSA recalculates required amounts. Importers and their surety providers must adjust financial security accordingly.

If you missed the May 2025 deadline or have not yet posted financial security, the situation is urgent but recoverable. You can still post a surety bond or cash deposit at any time — but your RPP privileges will not be restored until the process is complete. Every day without financial security is a day your goods risk being held at the border.

Choosing the Right Option for Your Business

For many Canadian importers, the decision between a written security agreement and a cash deposit comes down to whether they want to preserve working capital or post cash directly with the CBSA.

A surety bond is the right choice if:

• You want to minimize cash outflow — a bond premium is a fraction of a cash deposit
• You need flexibility as your import volumes change
• You prefer a managed process where your surety provider handles annual adjustments
• You want professional support navigating CARM requirements and compliance

A cash deposit might make sense if:

• Your required financial security amount is very small (near the $5,000 minimum)
• You have excess cash that you are comfortable posting directly to the CBSA
• You import infrequently and do not want an ongoing relationship with a surety provider

In practice, many importers prefer a written security agreement because it is more capital-efficient than posting the full amount as cash.

Get Your CARM Bond from Bondrail

Bondrail makes posting your CARM financial security as simple as possible. Our process is built specifically for the CARM electronic filing requirements:

• Join the waitlist — sign up in minutes at bondrail.ca/get-a-quote
• Provider coordination — we work with financial security providers that can post agreements electronically in CARM
• Electronic registration — we register your bond directly in the CARM system
• Annual review management — we monitor CBSA recalculations and handle adjustments proactively
• Expert support — our team understands CARM inside and out

Do not let your goods get held at the border. If you need a customs bond to meet your CARM financial security requirement, join the waitlist today.

For a complete walkthrough of setting up your CARM Client Portal account, see our CARM registration guide.