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DB Schenker offers several types of Canadian Customs Bonds: D-120 Customs Bonds, D-120 Highway Carrier Bonds, and Non-Resident Goods and Services Tax Bonds (GST Bonds). Not sure which type of bond you need? Request a quote and we’ll make sure you have the right bond for your situation.
The CBSA and CRA require bonds for non-resident importers, to ensure customs duties and taxes are paid in a timely manner. Although a single use bond can be used at each entry, annual bonds are often a better choice. Annual bonds can save you money and hassle, and eliminate lengthy application processes that result in border crossing delays, if you have multiple shipments per year.
Avoid border delays and excess fees! As one of the largest Customs Bond providers in North America, DB Schenker deals directly with A+ Surety Companies to get you the right bond at the best price.
D-120 Customs Bond – The Release of Goods Bond is submitted to the CBSA (Canadian Border Services Agency) prior to the payment of duties and taxes. This is to ensure that any customs duties and taxes levied onto goods imported into the country will be paid by the importer. This CBSA bond is used as security to release the goods into the country prior to payment of the duties. This is required for all importers, non-resident (NRI) and resident. This bond is required per the CBSA.
D-120 Highway Carrier Bond – If you are a highway carrier transporting bonded goods into Canada, you will need a D120 Customs Bond in conjunction with a Highway Carrier Code BSF329-7 application, in order to transport goods within Canada. Though a single trip authorization can be used, we recommend procuring an annual D120 Bond for two reasons: 1) A single trip bond would require heavy paperwork & documentation each time you enter Canada and 2) The application process must be done upon entering Canada, which can often result in border crossing delays.
Non-Resident GST Bond (Goods and Service Tax) – The GST Bond is submitted to the CRA (Canadian Revenue Agency) and is required if the principal does not have a permanent establishment in Canada. It gives importers GST credits since they are non-resident importers. The GST bond will apply depending on the imports/industry. This is determined by CRA.
GST applies when the company headquarters is not located in Canada (NRI). It does not apply to Canadian companies.
What is a Non-Resident Importer (NRI)?
A Non-Resident Importer (NRI) is a company who in most cases does not have a physical presence in Canada, yet for purposes of customs and GST, acts as the importer of record for goods sold/consigned into Canada. As an NRI, you will relieve your Canadian customers of the responsibilities of importation, making it easier for them to buy from you.
What Size Canadian Bond (D-120) Should Be Procured?
D-120 Customs Bond – DB Schenker recommends starting with a Canadian Customs bond D-120 for $50K. CBSA will review after a few months and provide feedback post audit if a smaller or larger bond size is needed and DB Schenker can issue an endorsement.
D-120 Highway Carrier Bond – $25k is the amount needed for a D-120 Highway Carrier Bond.
What is the Purpose of the GST Bond?
The GST bond is for an importer does not have a permanent establishment in Canada and allows them to get GST credits.