CARM Trade Chain Partners (TCP) Consultation Meeting, December 2019
- Financial security
- Delegation of authority / transaction types in the CCP
Here is a summary of the Financial Security discussion:
- All importers will be required to post their own security to participate in the RPP program.
- A commercial shipment will not be released prior to payment unless the importer has posted a surety or cash bond.
- The CBSA is working on the conditions upon which releases will be impacted due to inadequate security.
- CBSA recommends that the amount of RPP security an importer (resident or non-resident) posts should be based on their highest historic monthly accounts receivable over a 12 month period, inclusive of duties, taxes (GST), fees, and penalties.
- It is the importer’s responsibility to manage and maintain the appropriate amount of RPP security relative to their accounts receivable, inclusive of duties, taxes (GST), fees, and penalties. The $10 million cap in place today will remain.
- An importer will have the flexibility to make interim payment to reduce their RPP security utilization, and raise or lower their RPP security to account for seasonality or other fluctuations in their business.
- More details to follow with regard to CLVS.