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Import bonds and RPP security: what's a normal fee?

It depends on your duties, your volume and who posts the security. We can check yours.

If you import commercially into the US or Canada, you'll run into security requirements sooner or later. In the US it's the customs bond. In Canada, under CARM, it's the financial security you post to get your goods released before you pay duty and tax. Both show up on broker invoices in different ways, and both are easy to overpay for.

So what's a normal fee? It depends. That's the honest answer, and it's why we check it for you.

Canada: RPP security under CARM

Release prior to payment (RPP) lets your goods leave the border before duties and taxes are paid. To keep that privilege, the importer posts financial security with CBSA.

  • How much: CBSA bases the required amount on your highest monthly amount owing to it over the past 12 months, including duty, GST and any surtax.
  • Surety bond: If you post security through a written agreement with an approved surety provider, it must cover at least 50% of that calculated amount, with a minimum of $5,000.
  • Cash deposit: If you post cash, it has to cover 100%.
  • Reviews: CBSA recalculates the amount periodically, so what you need can rise as your imports grow.

With a surety bond, what you actually pay is an annual premium, a fraction of the bonded amount. The rate depends on the provider and your company's profile.

United States: customs bonds

  • Continuous bond: Covers all your entries for a year. CBP's guideline sets it at roughly 10% of the duties, taxes and fees you paid in the previous year, with a minimum of $50,000.
  • Single transaction bond: Covers one entry, generally for the value of the goods plus duties, taxes and fees. For goods regulated by agencies like the FDA, it can be three times the value.

For the minimum continuous bond, the annual premium is typically a few hundred dollars, depending on the surety. For anyone importing more than a handful of times a year, a continuous bond usually costs less than buying single transaction bonds shipment by shipment.

How brokers bill for security

This is where overpaying happens. Common setups include:

  • You hold your own bond or security, bought directly from a surety or through your broker at cost. Usually the cheapest option for regular importers.
  • Your broker covers you under its own arrangement and charges you a fee per entry. Convenient, but per-entry charges can add up to far more than an annual premium.
  • A markup on the premium, sometimes shown as a separate "bond fee" line on every invoice.

Questions to ask

  • Who holds the bond or security: me or my broker?
  • What's the annual premium, and what am I being charged in total per year?
  • Is my bond or security amount right for my current volume, or out of date?
  • If I switch brokers, does my security come with me?

We'll check it for you

Bond and security costs are one of the lines we look at in every audit. Send us your invoices and we'll tell you what you're paying for security each year, and whether a different setup would cost less.