What is the Release Prior to Payment (RPP) Program?

The RPP program allows importers the option to have their shipments released before providing the final accounting declaration and payment of any duties or taxes. This program is crucial for ensuring smooth and efficient border crossings, reducing delays, and minimizing additional costs.

Key Changes and Requirements

1. New Enrollment Requirements:

• As of October 2024, all importers must enroll in CBSA CARM client portal

2. RPP Start Date:

• The transition period for RPP ends on April 19, 2025. Importers must secure their financial security by this date to maintain RPP privileges.
• Financial security can be in the form of a cash deposit or a surety bond.

3. Not Maintaining RPP:

• Without RPP, shipments may be turned away at the border if duties and taxes are not paid in advance.
• Additional costs and delays due to extra data entry and pre-payment requirements.

Benefits of Maintaining RPP

1. Faster and Easier Imports:

• Enjoy quicker border crossings and streamlined import processes.
• Monthly billing statements for duties and taxes.

2. Compliance:

• Ensure CBSA compliance and avoid disruption to your clearance operations.

Financial Security Options

1. Cash Deposit:

• Set at 100% of importer’s highest monthly accounts receivable in the past year (inclusive of GST)
• Held in the CARM portal for as long as you remain in RPP and in good standing. 

2. Surety Bond:

• Set at 50% of their highest monthly accounts receivable (inclusive of GST) with a minimum financial security of $5,000 per import program (RM)

• Renewed annually by paying the bond premium.

Steps to Maintain RPP Privileges

1. Secure Financial Security:

• Choose between a cash deposit or a surety bond.
• Ensure your financial security is in place for April 19, 2025.

2. Monitor Financial Security:

• Ensure sufficient financial security to cover duties and taxes.
• Regularly check the CARM portal for updates and notifications.

The CARM system determines how much financial security (the total value of all bonds) you need for RPP. This amount depends on the value of the goods that you imported in the past 12 months. If your account is new, then the amount of financial security you need will depend on the amount of business you estimate you will do in the future.

The amount of security that you need can change over time, depending on the amount of business that you do. The CBSA will send you notifications in the portal’s notification centre when you need to change your bond to remain in RPP.

Frequently Asked Questions

1. How do I know if I am already registered for RPP?

• Check the CARM portal to see if you are registered and if you have provided the required financial security.

2. What happens if I don’t have enough financial security?

• CBSA will send notifications through the CARM portal. You will need to either make a payment to reduce the amount owing or increase your financial security to meet the required amount.

3. Can I use my own surety provider?

• Yes, you can use your own surety provider. Ensure that the bond details are manually entered into the CARM portal if your provider does not have an electronic connection.

We strongly recommend that all our clients maintain their RPP enrollment to ensure a seamless import process. If you have any questions or need assistance with securing your financial security, please contact us.