Non-Resident GST/HST Bond — Canada Customs Bond

If your company is based outside Canada but imports goods into the country or conducts taxable business activities here, you may need a non-resident GST/HST bond. This bond guarantees the Canada Revenue Agency (CRA) that your business will remit its Goods and Services Tax (GST) or Harmonized Sales Tax (HST) obligations — even though you have no physical presence in Canada.

For non-resident importers, Canada’s tax landscape can be complex. You may need to register for a GST/HST account, collect and remit tax on sales, and comply with Canadian tax filing requirements — all from outside the country. The bond provides the financial assurance the CRA needs to extend these obligations to a business it cannot easily audit or enforce against in person.

This guide covers what a non-resident GST/HST bond is, who needs one, how the bond amount is determined, what it costs, and how to get one. It is one of several customs bonds relevant to businesses importing into Canada.

What Is a Non-Resident GST/HST Bond?

A non-resident GST/HST bond is a surety bond — a three-party financial guarantee — between the non-resident business (the principal), the CRA (the obligee), and a surety company (the guarantor). It guarantees that the non-resident business will remit its GST/HST obligations to the CRA as required by the Excise Tax Act.

Why It Exists

Canada imposes GST (5%) at the federal level on most goods and services. Several provinces also charge HST, which combines the federal GST with the provincial sales tax into a single harmonized rate (ranging from 13% to 15% depending on the province).

When a non-resident business registers for GST/HST — whether because it is required to or because it chooses to for business reasons — the CRA takes on the risk that this foreign entity may not fulfill its tax remittance obligations. Unlike a Canadian business, a non-resident company may have no assets in Canada, no Canadian bank account, and no physical presence that the CRA can pursue if taxes go unpaid.

The bond addresses this risk. It provides the CRA with a financial guarantee backed by a Canadian surety company. If the non-resident business fails to remit its GST/HST, the CRA can make a claim against the bond.

Administered by the CRA, Not the CBSA

An important distinction: the non-resident GST/HST bond is administered by the CRA, not the CBSA. The CBSA handles RPP bonds and other customs bonds related to duties at the border. The CRA handles GST/HST registration and remittance obligations. These are separate government agencies with separate bonding requirements.

A non-resident importer may need both an RPP bond (with the CBSA, for customs duties) and a GST/HST bond (with the CRA, for tax remittance). They are not interchangeable.

Who Needs a Non-Resident GST/HST Bond?

The CRA does not require every non-resident business to post a bond. The requirement depends on the specific circumstances and the CRA’s assessment of the risk involved.

Common Scenarios Where a Bond May Be Required

• Non-resident importers (NRIs) — US or international companies that import goods directly into Canada under their own business number, rather than using a Canadian agent or distributor. NRI programs are common for US companies selling into Canada.
• E-commerce businesses — foreign companies selling goods to Canadian consumers that are required to register for GST/HST under the digital economy rules
• Non-resident businesses with taxable supplies in Canada — foreign companies that make taxable supplies of goods or services in Canada without maintaining a permanent establishment
• Voluntary GST/HST registrants — non-resident businesses that voluntarily register for GST/HST to claim input tax credits (ITCs) on Canadian expenses

When a Bond Is Typically Required

The CRA is more likely to require a bond when:

• The non-resident business has no physical presence or assets in Canada
• The expected GST/HST remittance obligations are significant
• The business is newly registered and has no track record of compliance with Canadian tax laws
• The business is registered in a jurisdiction where CRA enforcement is difficult

When a Bond May Not Be Required

The CRA may waive the bond requirement when:

• The non-resident business has a permanent establishment in Canada
• The business has a long track record of timely GST/HST remittance
• The expected tax obligations are small
• The business provides other forms of acceptable security

Your customs broker, tax advisor, or the CRA itself can confirm whether a bond is required in your specific situation.

How the Bond Amount Is Determined

The CRA determines the required bond amount based on the non-resident business’s expected GST/HST obligations.

Calculation Basis

The bond amount is typically set to cover the expected GST/HST remittance for a specific period — often one to four reporting periods worth of estimated tax obligations. The CRA considers:

• Expected volume of taxable sales or imports in Canada
• GST/HST rate applicable to the goods or services
• Filing frequency — monthly, quarterly, or annual GST/HST returns
• Historical compliance — if the business has been registered previously, the CRA may look at past remittance patterns

Typical Bond Amounts

Business Profile	Typical Bond Range
Small NRI program	$5,000 - $25,000
Mid-size importer	$25,000 - $100,000
Large-volume importer	$100,000 - $500,000+
E-commerce seller	$5,000 - $50,000

The CRA will specify the required amount when it notifies the business of the bonding requirement. The amount can be adjusted if the business’s operations change significantly.

How Much Does a Non-Resident GST/HST Bond Cost?

The cost is the annual premium you pay to the surety company.

Premium Rate Ranges

Premiums typically range from 1.5% to 3% of the bond amount per year, with minimum annual premiums of $350 to $500 depending on the surety company.

Non-resident GST/HST bonds sometimes carry slightly higher premium rates than standard RPP bonds because the principal is a foreign entity, which adds complexity to the surety’s risk assessment.

Cost Examples

Bond Amount	Estimated Annual Premium
$5,000	$350 - $500 (minimum premium)
$25,000	$400 - $750
$50,000	$750 - $1,500
$100,000	$1,500 - $3,000
$250,000	$3,750 - $5,000+

Factors That Affect Your Premium

• Bond amount — larger bonds may qualify for lower percentage rates
• Country of residence — US-based companies typically get better rates than companies in jurisdictions with weaker legal frameworks
• Credit history — the creditworthiness of the business and its principals
• Financial statements — the surety reviews the company’s financials, especially for larger bonds
• Operating history — established businesses with a track record get better rates than startups
• Compliance history — prior issues with tax authorities in any jurisdiction increase risk perception

What You Need to Apply

Applying for a non-resident GST/HST bond as a foreign company involves documentation from both the Canadian and home-country perspective.

Standard Documentation

• Business name, legal entity type, and country of incorporation
• Canadian Business Number (BN) and GST/HST registration number (if already registered)
• CRA correspondence specifying the bond requirement and amount
• Personal information for business principals — names, dates of birth, addresses
• Credit check authorization — the surety will run credit checks, which may include international credit reports
• Description of Canadian activities — what goods are being imported, what taxable activities are being conducted, estimated annual volume

For Bonds Over $50,000

• Business financial statements — typically the most recent two to three years, prepared in accordance with recognized accounting standards (US GAAP, IFRS, or equivalent)
• Personal financial statements for principal owners
• Business plan or Canadian operations summary — particularly for new NRI programs

Additional Considerations for Foreign Applicants

Surety companies may require additional documentation or guarantees for non-resident applicants, including:

• Translated financial statements if originals are not in English or French
• Parent company guarantee if the Canadian importer of record is a subsidiary
• Letter of good standing from the tax authority in the home country

How to Get a Non-Resident GST/HST Bond

Step 1: Confirm the Requirement

Confirm with the CRA or your tax advisor that a bond is required and determine the required amount. The CRA typically communicates this requirement in writing as part of the GST/HST registration process or during a compliance review.

Step 2: Choose Your Security Type

As with other bonds, you can post a cash deposit or a surety bond with the CRA. A surety bond is almost always preferable because it keeps your capital working in your business.

Step 3: Apply with a Surety Provider

Submit your application to a surety provider that handles Canadian customs and government bonds. Non-resident GST/HST bonds are a specialized product, so work with a provider experienced in bonding foreign entities.

You can join the Bondrail waitlist to start the process.

Step 4: Underwriting Review

The surety reviews your application. For straightforward applications with strong financials, expect approval in three to seven business days. More complex situations — such as applicants from jurisdictions with limited credit information — may take longer.

Step 5: Bond Issuance

Once approved, the surety issues the bond. The bond is provided to the CRA to satisfy the security requirement.

Step 6: Ongoing Compliance

With the bond in place, you must continue to file GST/HST returns on time and remit all amounts owing. The bond does not replace your obligation to pay — it guarantees it. If you default on your GST/HST obligations, the CRA will claim against the bond, and the surety will seek full reimbursement from you.

Non-Resident Importer (NRI) Programs

Many US companies use Non-Resident Importer (NRI) programs to import goods directly into Canada. Under an NRI program, the US company acts as the importer of record, obtains a Canadian Business Number, registers for GST/HST, and posts the necessary bonds.

Why Use an NRI Program?

• Control over pricing and customs valuation — the US company declares the value for duty purposes, which can be the transfer price rather than the resale price
• Input tax credit recovery — the NRI can claim ITCs on GST/HST paid at the border and on Canadian expenses
• Direct customer relationships — Canadian customers deal directly with the US company, not a Canadian distributor
• Simplified supply chain — goods ship directly from the US company to Canadian customers

Bond Requirements for NRI Programs

An NRI program typically requires two types of bonds:

1. RPP bond — filed with the CBSA to cover customs duties on imported goods. See our RPP bond guide for details.
2. Non-resident GST/HST bond — filed with the CRA to cover GST/HST remittance obligations

The bond amounts are calculated independently by each agency based on their respective formulas and risk assessments.

Setting Up an NRI Program

Setting up an NRI program involves several steps beyond just obtaining bonds:

• Registering for a Canadian Business Number with the CRA
• Registering for GST/HST
• Appointing a customs broker to handle border clearances
• Establishing a CARM account for managing customs security
• Posting the required RPP bond and GST/HST bond

A customs broker or trade compliance advisor experienced in NRI programs can guide you through the process.

What Happens in a Bond Claim

If the CRA makes a claim against your non-resident GST/HST bond, the consequences are significant.

Claim Process

1. Non-resident business fails to remit GST/HST by the filing deadline
2. CRA collection efforts — the CRA sends notices and attempts to collect directly
3. Formal demand on the surety — if the business remains in default, the CRA issues a formal demand to the surety
4. Surety pays the CRA — the surety fulfills its obligation under the bond, up to the bond limit
5. Surety seeks reimbursement — the surety pursues the non-resident business and any personal indemnitors for full repayment

Consequences

• Loss of GST/HST registration — the CRA may revoke or suspend your registration
• Difficulty obtaining future bonds — claims are reported within the surety industry
• Impact on NRI program — if your GST/HST bond is cancelled, your entire NRI program may be disrupted
• Legal action — the surety may pursue legal remedies in the business’s home jurisdiction

For more on CARM financial security and customs bonds, see our CARM financial security guide.

Get Your Non-Resident GST/HST Bond

A non-resident GST/HST bond is an essential component of doing business in Canada as a foreign company. Whether you are setting up an NRI program, registering for GST/HST for the first time, or responding to a CRA security requirement, we can help you get the right bond in place.

Join the Bondrail waitlist for non-resident GST/HST bonds — most bonds are issued within three to seven business days.

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