Question 1

What is a D120 customs bond?

Accepted Answer

A D120 is a customs surety bond that provides financial security to the Canada Border Services Agency. It guarantees that you'll pay the duties and taxes you owe, which lets your goods be released into Canada before payment — a privilege called Release Prior to Payment (RPP). Without security like a D120 bond, you'd have to pay duties and GST up front before CBSA releases each shipment.

Question 2

Why do I need my own customs bond under CARM?

Accepted Answer

Before CARM Release 2, importers could ride on their customs broker's bond. That changed: now every commercial importer must post their own financial security to keep Release Prior to Payment privileges. If you don't have your own bond or cash deposit on file in CARM, your goods can be held until duties and taxes are paid, which causes delays. A D120 bond satisfies this requirement.

Question 3

How much does a D120 customs bond cost?

Accepted Answer

Our bond service is $400 per year and renews annually until you cancel it. The bond amount you need is based on your import volume — specifically your highest monthly duties and taxes — and CBSA sets minimums. We assess your numbers, recommend the right bond amount, and file everything for you so you stay compliant without over-securing.

Question 4

How long does it take to get a customs bond?

Accepted Answer

We typically process and file D120 bonds within 48 hours. Once your bond is posted in CARM, you have Release Prior to Payment privileges and your goods can clear without paying duties up front. If you're setting up importing for the first time, we can arrange your bond alongside your CARM registration so everything is ready together.

Question 5

What is the difference between a bond and a cash deposit?

Accepted Answer

Both are forms of financial security CBSA accepts under CARM. A cash deposit means you post cash equal to your security requirement, tying up your money. A D120 surety bond instead guarantees payment for a yearly fee, so you keep your cash free for your business. For most importers a bond is far more cost-effective than locking up a cash deposit.

Question 6

How much bond coverage do I need?

Accepted Answer

Your required security is based on your highest monthly amount of duties and taxes, subject to CBSA's minimum bond amount. We review your import history or projected volumes and recommend a bond amount that meets CBSA's requirements without over-securing. Call 905-542-7327 and we'll size it correctly for your business.

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