CARM financial security: bond vs. cash.
To keep clearing goods before you pay, you post security in the CARM portal. Here is how the amount is worked out, the two ways to post it, and which one usually makes sense.
The short version
Your security requirement is your highest single month of duties and taxes owed to the CBSA (GST included) over the last 12 months, per import account.
You can cover it two ways: a non-cash bond that covers 50% of that amount (minimum CAN$5,000), or a cash deposit equal to 100% of it (no minimum). The maximum is CAN$10 million per account. Most businesses use a bond, because it ties up far less money.
How the amount is calculated.
The CBSA sets your requirement from your own import history. It takes your highest monthly account balance owed over the previous 12 months, for each RM import account. That balance is the total of duties and taxes (the GST is included), plus things like adjustments and interest.
So if your busiest single month in the last year was $80,000 in duties and taxes, your requirement is built on that $80,000, even if most months were much lower. The CBSA sizes your security to your peak, not your average.
Two ways to post it
Option 1: A non-cash bond. Officially a "written security agreement," and shown as a Non-Cash Bond in the CARM portal. You obtain it from an approved surety provider (a surety insurer, a bank, certain credit unions). It must cover 50% of your requirement, with a minimum of CAN$5,000 per import account. As the CBSA puts it, one dollar of bond covers two dollars of debt. You pay the surety a yearly premium, not the full amount, so very little of your own cash is tied up. This is what most regular importers use.
Option 2: A cash deposit. Officially a "deposit," and shown as a Cash Bond in the portal. You place money with the CBSA equal to 100% of your requirement. There is no minimum. It is simple and there is no surety to deal with, but it locks up real cash that could be working in your business. It tends to suit very low-volume or occasional importers, where the amount is small.
You can also mix the two to reach your total, and the overall cap is CAN$10 million per account.
A worked example
| Your highest month (last 12 months) | Non-cash bond (50%) | Cash deposit (100%) |
|---|---|---|
| $8,000 | $5,000 (the minimum applies) | $8,000 |
| $40,000 | $20,000 | $40,000 |
| $80,000 | $40,000 | $80,000 |
| $250,000 | $125,000 | $250,000 |
With a bond, the figures above are the coverage amount, not what you pay. You pay the surety a small annual premium on that coverage. With a cash deposit, the figure is money you actually place with the CBSA.
If you are a brand-new importer
No 12-month history? You give the CBSA an estimate based on your import projections, a self-assessment. You stay responsible for making sure your security actually covers what you end up owing, so estimate honestly. Once you have real history, the CBSA recalculates from it.
Keeping it healthy
- Watch your usage. Your open balance must stay below your posted security. CARM warns you at 75% and 100% usage. Cross 100% and the CBSA can suspend or revoke your Release Prior to Payment privilege.
- Expect an annual review. Once a year the CBSA recalculates your requirement from your most recent 12 months and tells you the new amount through the portal. If your imports grew, your security needs to grow with them.
- Mind bond expiry. If your bond has an end date, renew it before it lapses. A lapse in coverage puts your RPP privilege at risk.
How Setara helps
Our licensed customs broker partner helps you size your requirement, decide between a bond and a deposit, and arrange the bond with a surety provider, then takes delegated access in your CARM portal to handle the day-to-day. The security stays in your name, where the CBSA requires it. For the bigger picture, read the CARM overview first.
Frequently asked
How much security do I need?
It is based on your highest monthly balance owed to the CBSA (duties and taxes including GST, plus adjustments and interest) over the last 12 months, per import account. A bond covers 50% of that (minimum $5,000); a cash deposit covers 100% (no minimum). Maximum $10 million per account.
Bond or cash deposit?
A non-cash bond covers 50% and ties up almost none of your money (you pay a yearly premium), so most importers use it. A cash deposit covers 100% and locks up real cash, but is simple, which suits very low-volume importers.
I'm a new importer with no history.
You give the CBSA an estimate based on your import projections (a self-assessment), and stay responsible for keeping the security adequate. The CBSA recalculates once you have real history.
Does the amount change?
Yes. The CBSA reviews it yearly and recalculates from your most recent 12 months. You must also keep usage under 100% of your posted security; CARM warns you at 75% and 100%.
Last reviewed: May 2026. Figures reflect the CBSA's Memorandum D17-5-2 (Financial Security for Release Prior to Payment), revised August 8, 2025. The CBSA sets and reviews these requirements and can change them. Confirm your current requirement in the CARM Client Portal or with your customs broker before acting. General information, not customs or financial advice.
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