Bonded / Non-bonded carrier code

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Bonded / Non-bonded carrier code :

Bonded carriers can bring a load of goods past the port of entry into Canada to an authorized location without customs release. They can do this because they were required to post financial security for $5000 to $25,000 with the Canada Border Services Agency (CBSA).

The Benefits of Bonded Carriers

  • Move goods to an inland CBSA office (not located at the border) to have the shipment released;
  • Move goods “in transit” through Canada. The bonded carrier uses Canada as a corridor by starting from a point outside Canada and then transiting through Canada to another point outside Canada. A release by CBSA is not required;
  • Apply to the Customs Self Assessment Program and the Free and Secure Trade (FAST) Program.

After the implementation of commercial carrier code mandate in April 2011, choosing between becoming a bonded carrier and a non-bonded carrier depends on the type of operation.

Non-bonded carriers: At the 1st point of arrival within the state, the shipment must be released. In case, if the carrier cannot accept release of the shipment, it can be brought inland and released to Canada Border Services Agency Office. A single trip authorisation bond should be posted at the Canadian border or the carrier should have the right to use the code of another bonded carrier. If either of this is not done, penalty is usually levied. To get a non-bonded carrier code, one has to submit the ownership documents to the Canada Border Security Agency, which will be processed in a month’s time. Bonded carriers: The process to become a bonded carrier is a tedious one as one has to work with a Surety company or an approved agent. The owner should supply company financials and other documents to be reviewed. The original document with signature will be sent for approval and it usually takes about 6 weeks for the process to complete. The term for bond can be selected based on the need for 1 or 2 years.