Canada & U.S. Customs Bonds
Customs Bonds – Become a Bonded Carrier
AVAAL arranges U.S. and Canadian customs bonds through licensed sureties so your cross-border freight clears customs and keeps moving. Single-entry, continuous, and CARM financial security, handled end to end.
U.S. & Canadian Bonds
Expert Consultants
Fast Processing
Customs Bonds Guide
What is a customs bond?
A customs bond is a surety contract that guarantees payment of duties, taxes, and fees to the customs authority and the importer’s compliance with trade law. It has three parties: the principal (the importer or carrier), the surety that backs the obligation, and the customs authority as beneficiary, U.S. Customs and Border Protection (CBP) in the United States or the Canada Border Services Agency (CBSA) in Canada. If the principal fails to pay or comply, the authority can claim against the surety, which then recovers from the principal.
U.S. Customs Bonds
CBP requires a customs bond for most formal commercial entries, generally shipments valued at US $2,500 or more, and for goods regulated by other federal agencies such as the FDA or USDA regardless of value. Without a valid bond on file, CBP will not release the entry, which means delays, storage costs, and possible penalties.
Single Entry Customs Bonds
Covers one import transaction. Best for one-time or occasional shipments. The bond amount equals the entered value of the goods plus all duties, taxes, and fees, and is set higher when other-agency or quota requirements apply.
Continuous Customs Bonds
Covers all your entries through all U.S. ports for a 12-month, self-renewing term, and also secures Importer Security Filing (ISF) obligations on ocean freight. It is usually the more economical choice for frequent importers. The minimum continuous bond is US $50,000, or 10% of the duties, taxes, and fees you paid CBP over the trailing 12 months, whichever is greater.
Canadian Customs Bonds
Since 21 October 2024, CARM (CBSA Assessment and Revenue Management) has been the official system of record for importing commercial goods into Canada. To have goods released before paying duties and taxes, importers must enrol in the Release Prior to Payment (RPP) program and post their own financial security. Importers can no longer rely on their customs broker’s security to obtain release.
Bonded carrier status in Canada
A carrier transporting in-bond goods within Canada needs CBSA bonded carrier authorization with security on file. This is distinct from the importer’s RPP security and applies to the carrier, not the importer.
Overview
Why is a Customs Bond Required?
This bond acts as a financial guarantee that all applicable duties, taxes, and fees will be paid to customs, and that the importer will adhere to all relevant trade laws and regulations.
Without valid security in place, your shipments can be held or refused at the border, with knock-on storage costs and penalties. Getting the right bond, in the right amount, in the right country, keeps your supply chain moving. AVAAL handles the assessment and the application so you are compliant before your first load.
Obtaining a Customs Bond can be a complicated and daunting task, which is why many businesses come to AVAAL for help. We have years of experience and can guide your business through the regulation maze to help you become a bonded carrier.
Why It Matters
Without a valid Customs Bond, your goods can be denied entry into the U.S. and your shipments may face costly delays at the border. AVAAL helps you get compliant fast.
Requirements
Who Needs a Bond?
Several categories of businesses and operators are required by law to obtain Customs Bonds to operate legally across U.S. and Canadian borders.
Warehouse & Facility Operators
A warehouse or facility operator who wants to become a Customs bonded facility needs to obtain a Customs Bond.
International Carriers
International carriers, who transport passengers via air, water or road, into the United States from a foreign destination need to obtain Customs Bond.
Aspiring Customs Brokers
Those who are wishing to serve as a Customs Broker or as an approved gauge or laboratory also need to obtain a Customs Bond.
How AVAAL Helps
Obtaining a customs bond can be a maze of forms, thresholds, and agency rules. AVAAL’s consultants assess your operation, identify whether you need a single-entry bond, a continuous bond, RPP security, or carrier status, and arrange it through licensed sureties. Not sure where you stand? We will tell you exactly what applies before you spend a dollar.
Not sure if you need a customs Bond?
AVAAL’s consultants can assess your business operations and advise whether a single entry or continuous customs bond is the right fit. Contact us at (647) 943-1313 CAN, (916) 573-4205 U.S., or authorities@avaal.com.
Ready to Become
a Bonded Carrier?
FAQ
