Freight Forwarder Bonds — What Customs Bonds Do Freight Forwarders Need in Canada?

If you run a freight forwarding business in Canada and handle imported goods that have not yet cleared customs, you will need one or more customs bonds — but there is an important distinction to understand upfront.

The CBSA does not define a standalone “freight forwarder bond” as a distinct bond category. Unlike bonded carrier bonds or customs broker license bonds, there is no specific CBSA authorization called “bonded freight forwarder.” Instead, freight forwarders need different customs bonds depending on which activities they perform in the import supply chain.

This guide covers which bonds freight forwarders typically need, how those bonds work, what they cost, and how to get them in place.

What Bonds Do Freight Forwarders Need?

Freight forwarders occupy a coordination role in the import supply chain — they arrange the movement of goods from origin to final destination, often managing multiple legs involving ocean carriers, airlines, trucking companies, rail operators, and warehouse facilities. Depending on which of those activities a freight forwarder handles directly, different CBSA bonds apply.

Bonded Carrier Bond (Most Common for In-Bond Transport)

If your freight forwarding company physically transports in-bond goods — goods that have entered Canada but on which duties and taxes have not yet been paid — you need a bonded carrier license and the associated bonded carrier bond.

The bonded carrier license is governed by the Transportation of Goods Regulations (SOR/86-1064) under the Customs Act. It authorizes your company to transport goods that are still under CBSA control between customs-controlled locations within Canada (for example, from a port of entry to a bonded warehouse, an examination facility, or another customs office).

Many freight forwarders obtain this license when they operate their own trucks or vehicles for in-bond movements. If you do not transport in-bond goods yourself but instead subcontract that work to third-party carriers, those carriers must hold their own bonded carrier licenses — you would not need one yourself for that activity.

Customs Broker License Bond

If your freight forwarding company also provides customs brokerage services — preparing and filing customs entries, classifying goods, calculating duties on behalf of importers — you need a customs broker license and the associated customs broker license bond.

This is a separate authorization from any transportation-related bonding. The customs broker license bond guarantees compliance with the Customs Act in your role as a licensed broker, governed by the Customs Brokers Licensing Regulations (SOR/86-1067).

Many larger freight forwarding companies operate integrated brokerage divisions and need both a bonded carrier bond and a customs broker license bond.

Bonded Warehouse Bond

If your freight forwarding company operates warehouse facilities where imported goods are stored before duty payment, you need a bonded warehouse license and the associated bonded warehouse bond.

This is governed by the Customs Bonded Warehouse Regulations (SOR/91-628) and is a separate authorization from carrier or brokerage licensing.

RPP Bond (For Your Own Imports)

If your freight forwarding company also imports goods on its own account (not on behalf of clients), you will need an RPP bond for your own importer account, just like any other Canadian importer.

Which Bonds Apply to Your Operations?

Your Activity	Bond Required
Physically transporting in-bond goods on your own vehicles	Bonded carrier bond
Arranging in-bond transport using third-party bonded carriers	No bond needed for this activity alone (the carriers need their own bonds)
Filing customs entries and brokerage services for clients	Customs broker license bond
Operating a warehouse for pre-clearance goods	Bonded warehouse bond
Importing goods on your own business account	RPP bond

Most freight forwarders need at least one of these bonds. Larger, vertically integrated logistics companies may need several.

Bond Amounts and Costs

The bond amounts and premiums vary by bond type, but here are the typical ranges freight forwarders encounter:

Typical Bond Amounts

Bond Type	Typical Bond Amount
Bonded carrier bond	$25,000 - $100,000+
Customs broker license bond	$25,000 - $50,000+
Bonded warehouse bond	$25,000 - $100,000+

The CBSA sets the required bond amount based on the nature and volume of your operations for each specific authorization.

Premium Rate Ranges

Premiums for these customs bonds typically range from 1% to 2.5% of the bond amount per year, with minimum annual premiums of $350 to $500.

Cost Examples

Bond Amount	Estimated Annual Premium
$25,000	$400 - $625 (minimum may apply)
$50,000	$500 - $1,250
$100,000	$1,000 - $2,500

For most freight forwarders, the annual premium for each bond falls in the $500 to $1,000 range — a modest cost relative to the revenue generated by logistics services.

Factors That Affect Your Premium

• Bond amount — larger bonds may qualify for lower percentage rates
• Credit history — personal credit of business principals is the primary factor for smaller bonds
• Financial statements — required for larger bonds; strong financials mean lower premiums
• Operating history — established forwarders with clean compliance records pay less
• Claims history — prior bond claims increase premiums significantly

What You Need to Apply

For Bonds Under $50,000

• Business name and legal entity type
• Business Number (BN9)
• Description of operations — types of goods handled, ports served, volume of in-bond shipments
• Personal information for business principals
• Credit check authorization
• CBSA correspondence regarding the required bond amount and license type

For Bonds Over $50,000

In addition to the above:

• Business financial statements — year-end statements, preferably reviewed by an accountant
• Personal net worth statements for principal owners
• Operational details — fleet size (if applicable), number of employees, annual revenue

How to Get Bonded as a Freight Forwarder

Step 1: Determine Which Bonds You Need

Review the table above and identify which CBSA authorizations apply to your operations. If you are unsure, contact your local CBSA office — they can confirm which licenses and bonds are required for your specific activities.

Step 2: Apply to the CBSA for the Relevant License(s)

Each bond type is tied to a specific CBSA license or authorization. You will need to apply to the CBSA for the appropriate license (bonded carrier, customs broker, bonded warehouse, or a combination), and the CBSA will confirm the required bond amount for each.

Step 3: Apply for the Surety Bond(s)

With the CBSA’s required bond amounts in hand, apply with a surety provider. You can apply for multiple bonds simultaneously if you need more than one type.

You can join the Bondrail waitlist to start the process.

Step 4: Underwriting Review

The surety reviews your application. For standard bonds in the $25,000 to $50,000 range with good applicant credit, expect approval within two to four business days.

Step 5: Bond Issuance and License Activation

Once approved, the surety issues the bond(s). The bonds are provided to the CBSA as part of your licensing process. With the bond(s) in place, the CBSA completes its review and issues or renews your authorization(s).

Step 6: Maintain Your Bonds

All customs bonds are continuous and renew annually. They must remain active for as long as you hold the associated CBSA authorization. If a bond lapses, the corresponding license or authorization will be suspended.

Compliance Requirements

Freight forwarders with CBSA authorizations must meet specific compliance obligations depending on which licenses they hold.

In-Bond Goods Handling (Bonded Carriers)

• Maintain custody and control of in-bond goods at all times while they are under your responsibility
• Ensure goods are delivered intact to the authorized destination — seals unbroken, quantities correct
• Do not divert, split, or redirect shipments without CBSA authorization
• Properly document every in-bond movement with the required cargo control documentation

Record Keeping

• Maintain detailed records of all in-bond shipments handled, including cargo control documents, delivery receipts, and any CBSA correspondence
• Make records available for CBSA audit or inspection upon request
• Retain records for the period required by the Customs Act — typically six years

Reporting

• Report promptly when goods arrive at their destination
• Notify the CBSA of any irregularities — missing goods, broken seals, damaged cargo, or delivery delays
• File required reports on in-bond movements as directed by the CBSA

Consequences of Non-Compliance

Failure to comply with CBSA requirements can result in:

• Penalties assessed by the CBSA under the Administrative Monetary Penalty System (AMPS)
• Bond claims for duties and taxes on goods that are lost, diverted, or improperly handled
• License suspension or revocation
• Increased bond requirements
• Criminal prosecution in cases of deliberate fraud or smuggling

CARM and Freight Forwarder Bonds

The CARM system has modernized the administration of customs bonds. Bond filings are now handled electronically, and the CARM portal provides a centralized view of bond status and compliance requirements. For more on how CARM affects financial security, see our CARM financial security guide.

Get Your Freight Forwarding Bonds

Whether you need a bonded carrier bond, a customs broker license bond, a bonded warehouse bond, or a combination, we can help you get the right bonds in place for your freight forwarding operations.

Join the Bondrail waitlist for freight forwarding bonds — most bonds are issued within two to five business days.

For more on customs bonds in Canada, see our complete customs bond guide.