How to Become a Bonded Carrier in Canada and USA?

A Carrier bond is an essential document that allows transportation of all imported commercial goods into Canada and the USA. It guarantees the government that any tax, fee, and duty owned by the warehouse will be paid right when asked. 

Both the USA and Canadian governments have different regulations for importing and transporting goods in the country. Therefore, the trucking carriers must understand the difference between carrier and non-carrier bonds.  

Tip* Perceive the carrier difference that moves goods between these countries and ultimately complies with them. 

What Is A Custom Or Carrier Bond?

Customs bonds, also known as carrier bonds, are necessary paperwork to import commercial products into the United States. 

This applies to all goods, including food and ammunition, subject to other regulations imposed by federal authorities. The carrier bond guarantees that the truck company will pay the federal government any fees, taxes, and charges due.

A Carrier bond issued by the United States CTPAT is a broker’s bond that can secure the transaction. Customs bonds are obtained as a surety license by the U.S. Treasury Department; nevertheless, many other brokers act as surety agents. Therefore, you can acquire the bonds from a registered broker. Go to the U.S. Treasury Department’s website to check the details of the listed agents in your area.

Depending on how frequently you import items into Canada or United States, you can choose between a “single entry” and a “continuous bond.” The continuous bond is economically beneficial for individuals who import products from different U.S. ports of entry.

• What Is USA Carrier Bond?

A carrier bond is required for any items imported into the United States. And if you don’t have one, there’s a denial of the entrance. In addition, the United States provides “single entrance” and “continuous bonding.” A continuous bond is much more cost-effective for individuals who regularly transfer products into the States.

A customs or carrier bond is necessary for anybody importing into the United States. Any company or individual importing items for commercial purposes falls under this category. In addition, one might require a U.S. customs bond for all goods arriving by air, sea, or land.

• What Is Canadian Carrier Bond?

In distinction to the United States, Canada does not demand a customs bond for entrance. Importers of commercial products have the option of paying at the border or obtaining a carrier bond in advance. A carrier bond permits your goods into Canada while paying all tariffs and taxes later.

Customs can help firms import their goods into Canada to determine whether or not a customs bond is necessary. The type of commodities, overall value, and the reason for entering Canada play a significant role in the customs.

The Process Of Carries Bond

• The bonded carrier informs CBSA that the package is an in-bond shipment.

1.  On the ACI eManifest, the carrier indicates that the shipment is in-bond
2.  At the border, the driver presents a paper cargo form (A8A) to the CBSA officer to declare the consignment as in-bond.

• The shipment’s transportation will be authorized by a CBSA officer.
• The package can then be sent to a designated sufferance warehouse or another CBSA location to await Customs clearance.
• The transporter must wait for a formal entry filing by a Customs Broker or the importer before removing the items from the warehouse for delivery.

What Are The Benefits Of a Carrier Bond?

Carrier Bonds assist a broker to – 

• Transport goods to an inland Canada Border Services Agency office (not at the border) for release; 
• The carrier bonds use Canada as a corridor by starting outside of Canada. Further, it transmits via Canada to another point outside of Canada. Any particular CBSA release is not necessary;
• Fill out an application for the Customs Self-Assessment Program (CSAP) and FAST (Free and Secure Trade).

How To Become A Bonded Carrier In The USA And Canada?

The application to become a bonded carrier is more detailed than that of a non-bonded carrier. It is mainly because carriers must begin the bond application procedure with a certified surety business. Also, the carrier must provide some amount in the financial security fund. 

The applications must contain the firm’s financial information for the complete evaluation process. 

Since it offers clear guidance, carriers should consult the CBSA Guidelines: Highway Carrier Code Application Process on the CBSA website. Within three business days of submitting a completely finalized application along with the required paperwork, a carrier can obtain their carrier bond document. Applications are reviewed on a first-come, first-serve basis by the CBSA. It is important to note that there aren’t any criteria for granting “rush” requests.

How To Become A Non-Bonded Carrier?

If you want to become a non-bonded carrier, you must have proof of ownership. In addition, there is a particular application form that enables the transaction of Highway operations with the Canada Border Services Agency. 

It is crucial to note that an employee of the company with legal signing authority must sign the required application forms. Then, submit the scanned copy of the documents to the official website of the Canada Border Services Agency. No fee is associated with the application while dealing directly with the service agency. It may take approx. one month to process the entire application. 

Who Must A Bonded Carrier?

• For Warehouse Facility

A warehouse must get a carrier bond to become a Carrier bonded warehouse facility. Once a company has its carrier bond, it can keep or protect imported or exported items. 

If you want to become a Customs bonded warehouse or facility operator, submit an application to the port director specifying the sort of warehouse you want to open.

• For Aspiring Brokers 

People or companies willing to serve as a broker must have a carrier bond. Otherwise, they will not have the right to serve the customs. 

• For International Carriers 

International carriers bringing people into the United States by air, sea, or land from another country must acquire a Customs bond. You must also get a carrier bond if you are a domestic carrier transporting inbound imported merchandise from one state to another inside the country.

Finishing Up – 

Now that you are entirely aware of the carrier bond applying for it before taking your cargo across Canada or the USA is essential. If you still have doubts or queries in your mind regarding the bonded carriers and non-bonded carriers, then you must connect with Maze Consultancy. It is the right destination for you to understand everything you may not have understood by far. Connect with the professionals and resolve all your worries in no time!