Release prior to payment (RPP) is a cash-flow and cargo-release arrangement, not a waiver of duties and taxes. An importer that uses RPP generally receives eligible goods before paying the amount reported on its customs account, while providing financial security and settling its statement on the applicable payment schedule. The arrangement works only when the importer’s CARM account, customs bond, shipment data and accounts-payable process agree.
For companies receiving freight through Pearson, a Mississauga warehouse, a Brampton distribution operation or a Toronto consignee, the practical question is not simply whether a bond exists. It is whether the bond is posted for the correct importer, supports the importer’s release privileges and is monitored as shipment volume changes.
What release prior to payment actually does
Under RPP, an eligible importer can generally have customs accounting and release handled before the related duties and taxes are paid. The importer still remains responsible for the declaration, tariff classification, origin, value for duty, taxes, corrections and payment. RPP changes the timing and security mechanism; it does not transfer those obligations to a customs broker or a surety.
CBSA’s D17-1-8, Release Procedures, and its RPP information explain the relationship between release, accounting, financial security and payment. Importers should check the current program guidance when opening or changing an account because eligibility conditions and portal procedures can be revised.
The bond is security, not a credit facility
A customs bond or other acceptable financial security protects the Crown if the importer does not meet an amount owing. It does not pay the importer’s monthly statement, correct a bad entry or create additional time after the payment deadline. A surety may have rights against the principal under the bond agreement if a claim is made.
The security is normally tied to the importer’s business account and its RPP participation. That is different from assuming that a broker’s general financial security automatically covers every client. The importer should confirm whose account is secured, what form of security was accepted and whether the security is active before relying on release prior to payment.
The RPP and bond lifecycle
1. Establish the importer’s CARM account
The importer generally needs an active CARM Client Portal account and a properly managed business account before setting up its own RPP security. Legal name, business identifiers, addresses, contact roles and delegated authorities should match the records used on customs transactions.
This is an ownership issue. A customs broker can help prepare entries, transmit data and explain portal steps, but the importer’s authorized personnel generally control the account, financial security and payment arrangements. A Toronto head office, for example, should make sure its Mississauga receiving site and any third-party logistics provider are not treated as separate importers unless the legal and customs structure supports that result.
2. Select and arrange the security
Importers generally arrange RPP security through an acceptable financial-security method, such as a surety arrangement or another option permitted by CBSA. The importer should review the bond wording, principal name, effective date, renewal terms, cancellation provisions and any underwriting conditions before assuming it can be used for release.
Ask the surety or financial institution how the security amount is determined and what information is required to change it. The appropriate amount depends on the importer’s customs activity and the applicable rules; it should not be guessed from the value of one shipment. A seasonal importer may need to review its security differently from a business with steady monthly entries.
3. Link the approved security to the account
Posting a bond with a surety is not necessarily the same as completing the CARM setup. The importer generally needs to submit or link the security through the required account process and confirm that it has been accepted. The broker should receive confirmation of the importer’s RPP status rather than relying on an internal assumption that the bond is “in progress.”
Before the first shipment is released under the arrangement, verify:
- the legal importer of record matches the business account and bond principal;
- the security is active and accepted for the intended account;
- the broker has the correct delegation and release instructions;
- the importer has a working process for receiving and paying the customs statement; and
- any business units, divisions or non-resident importer structures have been reviewed separately.
4. Use the arrangement shipment by shipment
For each import, the broker generally checks the release request, accounting data, commercial documents and any applicable control or permit requirements. RPP does not remove the need to provide accurate invoices, packing details, tariff information, origin evidence or other documents needed to support the declaration.
A release request can still be delayed if the account is not eligible, security has not been accepted, a required document is missing, the shipment is selected for examination or the transaction needs review. Freight arriving at Pearson may therefore remain subject to ordinary release controls even when the importer has a valid bond.
5. Reconcile and pay the statement
The importer generally receives customs accounting information through CARM and should reconcile it to the broker’s entry package and internal receiving records. Accounts payable should know which customs statement is being paid, which entries are included, the due date and who approves corrections.
A strong process separates three questions:
- Was the shipment released?
- Was the entry accounted for correctly?
- Was the resulting statement paid on time?
Release answers only the first question. A shipment released to a Brampton warehouse can still have an incorrect classification or value, and a correctly accounted entry can still create a payment problem if it is not captured by accounts payable.
6. Review the bond as the business changes
Importers should reassess their security and workflow after material changes such as a new product line, a major customer contract, a change in shipment frequency, acquisition of another importer, a new non-resident importer arrangement or a move between related legal entities.
Security should also be reviewed when customs account balances rise, when the importer begins using additional ports of entry or when the company changes its surety, financial institution, broker or ERP system. A bond that was adequate for a small Toronto operation may not be appropriate after the company adds high-volume distribution through Mississauga and Brampton.
Where GTA importers commonly lose control
Using the wrong legal entity
Related companies can have similar names, shared warehouse space and the same broker, but they are not interchangeable for customs purposes. The importer should maintain a legal-entity matrix showing the account, business number, bond principal, broker delegation, ship-to locations and internal owner for each importing entity.
Confusing broker service with importer security
A broker may coordinate release work, but the importer remains responsible for the data supplied and the amounts owing. A request such as “release it under our bond” is incomplete unless the broker knows which importer account and accepted security should be used.
Relying on a bond while payment controls are weak
RPP can make freight movement smoother while making an accounting failure less visible. A missed statement can affect future release activity and create escalation with the surety or customs authorities. The importer should use a daily or weekly exception report that compares released shipments, accounted entries, statement balances and payments in transit.
Failing to budget for adjustments
Post-release corrections can change the amount owing. Classification changes, valuation adjustments, origin findings, tax errors and reassessments should be routed to both the customs-compliance owner and accounts payable. The original commercial invoice is not always the end of the customs record.
Assuming every shipment qualifies
RPP is not a guarantee of immediate release. Goods subject to other government department requirements, examinations, missing documentation or specific release restrictions can follow a different path. The broker can identify the customs release issue, but the importer may need to obtain product documents, permits or technical evidence before the shipment can proceed.
A practical control model for the importer and broker
Use a written handoff that defines who owns each step:
| Control point | Importer responsibility | Broker role |
|---|---|---|
| Account and security | Maintain legal-entity data, CARM access and accepted financial security | Explain transaction requirements and identify account or delegation issues |
| Shipment documents | Provide accurate commercial, origin and product information | Review supplied data for entry preparation and request missing details |
| Release | Authorize the transaction and resolve importer-owned holds | Transmit the release request and communicate status or exceptions |
| Accounting | Review entries, approve corrections and retain supporting records | Provide entry packages and flag apparent errors |
| Payment | Reconcile and pay the customs statement by the applicable deadline | Clarify entry-level amounts; do not replace the importer’s payment control |
| Bond review | Monitor volume, exposure, renewals and changes in legal entity | Advise when release activity suggests an account or security review |
The most useful operating metric is not simply the number of shipments released. It is the number of entries that can be traced from purchase and receiving records, through the broker’s declaration, to the customs statement and payment confirmation.
What a broker can do when the process fails
When release does not proceed under RPP, the broker can isolate whether the problem is an account status issue, missing security, missing delegation, incomplete shipment information, a government-control requirement or an entry-data concern. That diagnosis determines the next action.
- For an account or security issue, the importer generally needs to correct or confirm its CARM and financial-security setup.
- For missing commercial or product information, the importer should provide the evidence needed to support the declaration.
- For a classification, origin or valuation question, the broker can review the proposed treatment and identify documentation or correction steps.
- For a payment or statement issue, the importer’s finance team generally needs to confirm balances, approvals and payment status.
The broker can also help build a pre-arrival checklist for freight routed through Pearson or delivered to GTA facilities. That checklist should identify the importer entity, intended account, bond status, document owner and escalation contact before the shipment reaches the release stage.
Questions to ask before relying on RPP
- Which legal entity is the importer of record for each product flow?
- Is that entity’s CARM account active, delegated correctly and linked to accepted security?
- Who confirms that the bond remains in force after renewal or a corporate change?
- How are released entries matched to receiving, inventory and accounts-payable records?
- Who approves a correction when classification, origin or value changes?
- What is the escalation route when a Pearson shipment cannot be released as planned?
RPP is most reliable when treated as a controlled operating process rather than a one-time bond purchase. The importer owns the account, evidence and payment discipline; the broker manages the customs transaction and identifies exceptions; and the surety or financial institution provides the agreed security. Keeping those roles separate helps GTA importers protect both cargo flow and customs compliance.