RPP Bond: CBSA Release Prior to Payment Guide

Who this is for: commercial importers who want goods released at the border before duties and taxes are paid.

Quick answer: Release Prior to Payment (RPP) lets CBSA release your shipment first so you pay on your statement later. Since May 20, 2025, importers must post their own financial security in the CARM Client Portal to use RPP: a customs bond (or other written security agreement) or a cash deposit (Customs Notices 25-16 and 25-22). Without RPP, you or your broker file a C-type CAD and pay before release, which can delay release. CBSA calculates the amount from your highest monthly balance of duties and taxes in the previous 12 months. A bond must cover 50% of it (minimum $5,000); a cash deposit must cover 100%. New importers estimate their own amount, and we can help you work it out.

Need RPP security in place? Get your customs bond through J.W. Smith.

Understanding Release Prior Payment Bond (RPP)

A Release Prior to Payment Bond is a financial guarantee that allows businesses to clear their goods through the CBSA before paying duties and taxes.

An RPP bond is continuous security posted on your import-export (RM) account. It lets you get goods released before you pay, and you account and pay later on your monthly statement.

It also acts as a Customs Bond that assures the CBSA that all required fees will be settled later, thus reducing the financial burden on importers and cross-border trade businesses, as they can maintain cash flow while ensuring their shipment moves smoothly through the border.

How RPP Bonds Work

When a shipment arrives at the Canadian border, importers must complete customs clearance before their goods can be released. Typically, this involves submitting detailed paperwork, paying duties and taxes, and waiting for approval.

However, under the Release Prior to Payment Bond program, businesses can have their goods released before payment of duties and taxes—provided they have posted the required financial security.

The key steps in the process include the following:

1. Posting financial security

Importers must now post financial security themselves to participate in the RPP Program. Previously, they could use their customs broker’s security, but since May 20, 2025, importers must post their own in the CARM Client Portal.

Security comes in two forms. Both are sized on your highest monthly balance of duties and taxes (including GST) over the previous 12 months:

• Customs bond (written security agreement): This must cover 50% of that amount, with a minimum of $5,000 per import-export (RM) account.
• Cash Security Deposit: This must cover 100% of that amount, meaning businesses must provide the full amount upfront as a deposit.

Either way, security is capped at $10 million per RM account, and new importers with no import history estimate their own amount (Memorandum D17-5-2).

2. CBSA approval

Once your security is posted and meets the requirement, CBSA confirms your RPP enrolment with a notification in the CARM Client Portal, and you can begin getting goods released before payment.

3. Final accounting and payment

Even though goods are released early, importers must still submit a full accounting report and pay all outstanding duties and taxes within the CBSA’s required timeframe. Failing to meet these deadlines could result in penalties or removal from the RPP program.

To apply, companies must register with the CBSA, access the CARM client portal, choose their preferred security option, and ensure they maintain compliance by keeping their financial security up to date.

Why the Payment Bond Matters for Cross-Border Businesses

Below are core reasons why an RPP Payment Bond is essential:

• Faster access to goods: Shipments clear customs without waiting for duties and taxes to be paid, thus ensuring quick delivery and uninterrupted business operations.
• Improved cash flow: Since payments can be deferred, businesses can allocate funds to other critical areas like inventory, logistics, and growth.
• Reduced storage and demurrage fees: Avoiding hold-ups at ports helps businesses save on unnecessary storage costs and penalties.

Securing the RPP Customs Bond enables your international trade business to meet the CBSA’s financial security requirements while simplifying the import process.

How to Maintain Compliance With an RPP Bond

Once approved for the Release Prior to Payment Bond program, businesses must follow strict compliance measures to continue benefiting from faster customs clearance.

Key compliance requirements include the following:

• Maintaining financial security: Importers must ensure their bond or cash deposit remains valid and covers the required amount. CBSA reviews the requirement every year, and changes in monthly volume may require an adjustment to the financial security posted.
• Timely accounting and duty payments: Importers must submit complete and accurate accounting records within the CBSA’s deadlines. All duties and taxes must be paid on time to avoid interest charges or penalties.
• Continuous communications with the CBSA: If any business change occurs, such as a new company structure or financial security updates, it must be reported to the CBSA immediately.

Failure to meet these requirements could result in penalties, delays, or removal from the program.

Let Us Walk You Through the Complex Process of the RPP Program

For years, importers could rely on their Customs Bond issued by customs broker to secure shipments. However, since May 20, 2025, that option no longer exists, with businesses now tasked to handle RPP Program requirements.

The process can feel like being handed a rulebook in a language you don’t speak—complex, overwhelming, and full of potential pitfalls. This is where J.W. Smith steps in, offering expert guidance needed to simplify all cross-border trade requirements.

As a licensed customs brokerage firm, family-owned since 1974 in Brampton, we specialize in making trade seamless by assisting importers in securing the right RPP Payment Bond, explaining rules and terms, ensuring full compliance with financial security requirements, and handling all aspects of customs clearance.

From classifying goods, calculating duties, and preparing documentation, our expertise prevents unnecessary penalties, demurrage fees, and supply chain disruptions.

Beyond securing a Payment Bond, we offer a suite of extended brokerage services that include vehicle importing and U.S. non-resident importing solutions.

Our commitment to efficiency means cross-border trade businesses can clear shipments faster, manage cash flow more effectively, and avoid the bureaucratic headaches of international trade.

As a licensed Canadian customs broker with over a million shipments cleared, we aim to be more than just a broker—we want to be your trusted business partner.

For more information, call us at (905) 542-7327 or contact us online to simplify your Payment Bond enrolment and keep your shipments moving without hassle!

Need RPP security in place? See customs bond services.

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Importing commercial goods into Canada? J.W. Smith is a licensed customs broker, family-owned since 1974 in Brampton, with over a million shipments cleared. Get an estimate or call (905) 542-7327.