Commercial Carriers

Registration Unit

A commercial carrier is a person or company who transports commercial goods into Canada and can move goods by air, highway, sea, rail or international mail.

Record Keeping

Commercial carriers must keep books and records related to the movement of commercial goods at their place of business in Canada for three years after the year they transported the goods to Canada. These records must include the following:

• Dispatch logs;
• Bills of lading;
• Proof of customs report and release;
• Invoices; and
• Other records that can include but are not limited to
  • charts of accounts,
  • trip logs,
  • movement history reports,
  • commercial invoices,
  • paper documents, or
  • electronic documents.

Carrier Codes

A carrier code is a four-digit unique identifier that is assigned by the CBSA to a carrier. With the implementation of eManifest, all carriers, regardless of how often they cross the Canadian border with commercial goods, will require a carrier code.

See information below under Types of Carriers on how to obtain a carrier code.

Overview

The carrier code is combined with a unique shipment number (chosen by the carrier) to create a cargo control number.

The cargo control number is critical because it identifies both the carrier and shipment to the CBSA at the time of reporting and when release documents are presented.

The cargo control number is used in bar-code format. Highway carriers have 30 days after receiving their carrier code to obtain bar-coded labels. After 30 days, an administrative penalty of $1,000 will be imposed on carriers if bar-coded labels are not presented with their shipments upon arrival at the Canadian border.

Changes to existing carrier codes

If your business is moving, you must notify the CBSA as soon as possible. Please indicate the name of your business and your carrier code and your new postal address and telephone number.

If your business is changing its name, you must forward all relevant documentation to the CBSA as soon as possible. Bonded carriers who use bonds as security must forward an original of the bond rider/endorsement provided by the Canadian insurance company or Canadian financial institution to the CBSA. Please indicate your carrier code, the previous name of your business, the business address, a contact name and telephone number.

Types of Carriers

Bonded carriers

A bonded carrier posts security with the CBSA to cover the following situations:

• To move goods to a CBSA office inland (not located at the border) to have the shipment released;
• To move goods "in transit" through Canada. The bonded carrier uses Canada as a corridor, or a shortcut, by starting from a point outside Canada and then transiting through Canada to another point outside Canada (e.g. U.S. → Canada → U.S.). The goods in transit are not released in Canada;
• To apply to the Customs Self Assessment program and/or the Free and Secure Trade (FAST) program; or
• To apply to the post-audit program.

Becoming a bonded carrier

1. Prepare and/or complete the following:
   1. Form E370 (PDF, 148 KB) – Application to Transact Bonded Carrier and Forwarding Operations. This form must be signed by an officer of the company with signing authority. Acceptable signatories include: chief executive officer, chief financial officer, president, owner, partner, director or any other individual within the corporation who has the authority to enter a legally binding contract. In the case of a sole proprietorship, only the owner may sign.
   2. Post security with the CBSA in the form of a Customs Bond — Form D120 (PDF, 297 KB) —or other method as listed in Customs Memorandum D1-7-1. Customs bond instructions will follow.
2. Mail the original documents to the CBSA.

After these steps are successfully completed, should your company meet the established criteria, you will receive your assigned bonded carrier code, instructions on how to obtain bar-coded labels and printing requirements for the labels.

Customs Bond Instructions

For a Customs Bond, Form D120 (PDF, 297 KB) must be completed by the surety company securing the bond. The surety company must fall under one of the following categories:

• A company that is approved by the Treasury Board Secretariat (as found in Appendix L of the Contracting Policy)
• A member of the Canadian Payments Association

For the Customs Bond to be accepted by the CBSA, the original must be submitted and must be free of errors. The following step-by-step instructions should be used to review your Customs Bond prior to submission to the CBSA.

Section 1: “Activity to be secured” must specifically contain the mode-specific wording for the mode of transport the company is applying for:

• Highway Carriers: Bonded Carrier Operations (Highway)
• Air Carriers: Bonded Air Carrier Operations
• Freight Forwarders: Bonded Freight Forwarder Operations
• Marine Carriers: Bonded Marine Carrier Operations
• Rail Carriers: Bonded Rail Carrier Operations

Under “Relevant legislative authority” you must list one of the legislative authorities listed in Section 2. For any of the above noted activities to be secured, you must enter: “Transportation of goods regulations”.

“Bond amount” depends on what type of bonded operation is being applied for as well as the assets in the applicant’s possession and the type of movement performed.  Amount requirements may be found in the following table:

Mode	Amount	Reference
Highway	$5,000 to $25,000	D3-4-2 (paragraph 1)
Air	$10,000 to $80,000	D3-2-2 (paragraphs 7-9, 126, Appendix D)
Freight Forwarder	$25,000	D3-3-1 (paragraph 9)
Marine	$25,000	D3-5-2 (paragraph 72)
Rail	$80,000	D3-6-6 (paragraph 1)
In-transit	$25,000	D3-4-5 (paragraph 2)

Section 3: To perform bonded carrier operations, the Customs Bond must be a continuous bond or a bond for a specified period. If a continuous bond is chosen, when the CBSA receives it, the effective date should be no older than six months. If the effective date displayed is older than six months from the date of receipt by the CBSA, the applicant must submit an original continuation certificate issued by the surety company along with the bond to substantiate its validity. If a bond for a specified period is submitted, the bonded carrier code will expire upon the date of termination of the Customs Bond.

Section 4: Must be worded as follows: All Customs Offices in Canada

Section 7 (for principal/applicant): Must contain the appropriate company name, address and signatures as found on the company’s articles of incorporation (if applicable). Two company officials, consisting of the president and the secretary (or secretary-treasurer) must sign for the principal (applicant). If the president officially assumes both functions for the corporation, he/she must sign twice identifying him/herself as such. Other authorized company officials may sign the Customs Bond provided that a certified copy of the by-laws is provided, authorizing other officers to sign on behalf of the company.

When the principal is a sole proprietorship or partnership, the CBSA requires the signature(s) of the proprietor or of two partners on the surety bond.

Section 7 must contain the embossed seal of the principal (applicant). If the principal does not have a corporate seal, the Customs Bond must be witnessed by either a commissioner of oath, notary public or a lawyer in Section #8. The witness must include his or her seal, or stamp, or licence number.

Section 7 (surety): The surety company issuing the bond is required to sign and seal under the appropriate section. Surety company signatures and/or seals should be complete upon receipt of the bond from the surety company by the principal. If the surety company does not include its corporate seal, a commissioner of oath, notary public or lawyer must witness the signature(s) of the surety’s authorized representative(s).

If a witness for the surety is required, the witness must sign in an area other than in Section #8 reserved for the principal. The witness must include his or her seal, or stamp, or licence number.

The original bond must be submitted along with the original application. Photocopies are not accepted.

Note: Bonded highway carriers have 30 days after receiving their carrier code to obtain bar-coded labels. After 30 days, an administrative penalty of $1,000 will be imposed on carriers if bar-coded labels are not presented with their shipments upon arrival at the Canadian border.

Non-bonded carriers

Normally a non-bonded carrier must have the shipment released at the first point of arrival (i.e. the border). However, if the non-bonded carrier cannot obtain release of the shipment at the border and chooses to bring a shipment inland for release at another CBSA office, the carrier must post a single trip authorization bond at the Canadian border or be authorized to use the carrier code of a bonded carrier. Otherwise, the non-bonded carrier may be issued a penalty.

Becoming a non-bonded carrier

1. Complete Form E369 (PDF, 38 KB) – Application to Transact Non-Bonded Carrier Operations at Point of Arrival in Canada. This form must be signed by an officer of the company with signing authority. Acceptable signatories include: chief executive officer, chief financial officer, president, owner, partner, director or any other individual within the corporation who has the authority to enter a legally binding contract. In the case of a sole proprietorship, only the owner may sign.
2. Mail or fax the application to the CBSA.

After these steps are successfully completed, you will receive your assigned carrier code, instructions on how to obtain bar-coded labels and printing requirements for the labels.

Note: Non-bonded highway carriers have 30 days after receiving their carrier code to obtain bar-coded labels. After 30 days, an administrative penalty of $1,000 will be imposed on carriers if bar-coded labels are not presented with their shipments upon arrival at the Canadian border.

Types of Bonds

Single trip authorization

Applications for a single trip authorization must be filed, in duplicate, at the first point of arrival in Canada using Form E370 (PDF, 148 KB). Security must also be posted as outlined in Memorandum D1-7-1, Posting Security for Transacting Bonded Operations.

A single trip authorization may be acquired in one of two ways: by posting security with the CBSA using cash or a certified cheque, or by engaging a customs broker who provides this service.

Guidelines and general information

Memorandum D1-7-1outlines specific policies and procedures for posting security for bonded operations. Before you make an application to transact a bonded operation, you should consult the applicable memoranda to clarify application requirements, levels of security, bond format and specific completion instructions.

Bonded Carrier Operations

• Bonded air carriers
• Bonded freight forwarder
• Bonded highway carriers
• Bonded marine carriers
• Bonded rail carriers

Bonded air carriers

The CBSA requirements and procedures for reporting and controlling cargo transported by air.

Form AG1 (PDF, 45 KB) – General Declaration (Outward/Inward)

[ More information on bonded air carriers ]

Bonded freight forwarder

The CBSA requirements and procedures for the secondary reporting and control of in-bond cargo that is deconsolidated in Canada by deconsolidators or freight forwarders.

[ More information on bonded freight forwarders ]

Bonded highway carriers

The CBSA requirements and procedures for reporting and controlling cargo brought into Canada by highway carriers.

[ More information on bonded highway carriers ]

Bonded marine carriers

The CBSA requirements and administrative policies that apply to the inward movement of marine cargo.

[ More information on bonded marine carriers ]

Bonded rail carriers

The CBSA requirements and procedures for reporting and controlling cargo brought into Canada by rail carriers.

[ More information on bonded rail carriers ]

Other Carrier Operations

• Non-bonded freight forwarders
• Customs Post Audit System
• In-transit movements
• Vessels in international service
• Temporary importation of vessels

Non-bonded freight forwarders

To supply electronic supplementary data for Advance Commercial Information only

Non-bonded freight forwarders only require a carrier code if they plan to transmit cargo data to the CBSA directly or through a service provider. If you are supplying information through a carrier, then a code is not required.

The CBSA will only issue a non-bonded freight forwarder code once you or your service provider has contacted the Electronic Commerce Unit and a testing plan has been approved.

Please complete Form E369-1 – Application to Obtain a Non-Bonded Freight Forwarder Code (PDF, 223 KB) and send it by fax or by mail to the CBSA.

Customs Post Audit System

Under this system, qualifying companies may transport goods in bond with limited physical control. They may do this on condition that they make records available proving that they disposed of the cargo according to sections 18 and 20 of the Customs Act.

Application forms:

• Air carrier
• Container operator or container pool operator
• Highway carrier
• Rail carrier

[ More information on the Customs Post Audit System ]

In-transit movements

The two-step customs process for reporting and controlling goods in transit through either Canada or the United States.

[ More information on in-transit movements ]

Vessels in international service

CBSA requirements and procedures for reporting and clearing vessels in international service.

[ More information on vessels in international service ]

Temporary importation of vessels

Laws, policies and procedures governing the temporary importation of vessels into Canada for use in the Canadian coasting trade.

Form C47 (PDF, 58 KB), Application for Vessel Temporary Admission to the Coasting Trade of Canada (includes guidelines for completing the form)

[ More information on temporary importation of vessels ]

Contact Information

Registration Unit
Canada Border Services Agency
150 Isabella Street, 4th Floor
Ottawa ON  K1A 0L8

Fax: 613-957-9717

Please note that the following original documents must be submitted by mail and will not be accepted by fax or photocopy:

• Bonded applications (Form E370) for any mode
• Security in form of Customs Bonds (Form D120), certified cheques, money orders
  • Supplementary Customs Bond documents such as riders/endorsements, letters of reinstatement, notices of cancellation or continuation certificates

For more information regarding Bonded and Non-bonded carrier codes, contact the Border Information Service line.

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