For many Canadian importers, one of the most important benefits of working with a customs broker is the ability to receive goods quickly without paying duties and taxes upfront. Historically, this was made possible through a program known as Release Prior to Payment (RPP).

With the implementation of the Canada Border Services Agency’s (CBSA) Assessment and Revenue Management (CARM) initiative, the way importers access and manage RPP has changed significantly. Businesses that import goods into Canada must now understand how RPP operates within the new CARM framework, what financial security requirements apply, and how these changes affect customs clearance.

This guide explains what Release Prior to Payment is, how it works under CARM, and what importers need to do to maintain efficient border clearance.

What is Release Prior to Payment (RPP)?

Release Prior to Payment is a CBSA program that allows imported goods to be released before duties and taxes are paid.

Without RPP, importers would generally be required to pay all applicable duties, taxes, and fees before their goods could be released by CBSA. This could create cash flow challenges and delays, especially for businesses that import frequently.

RPP allows qualified importers to:

  • Obtain the release of goods before payment
  • Consolidate customs accounting obligations
  • Improve cash flow management
  • Reduce border delays
  • Streamline import operations

For many businesses, RPP has long been considered an essential component of efficient importing.

Why RPP Matters for Canadian Importers

Importing often involves significant duty and tax obligations, particularly for businesses bringing in large or frequent shipments.

If payment had to be made before every shipment could be released, importers could face:

  • Delayed inventory availability
  • Increased administrative work
  • Cash flow pressure
  • Slower supply chain operations

RPP helps address these issues by allowing businesses to receive their goods first and settle their financial obligations afterward according to CBSA’s prescribed timelines.

As supply chains become more complex, maintaining access to RPP has become increasingly important for many Canadian importers.

How CARM Changed the RPP Program

The launch of CARM fundamentally changed how importers interact with CBSA’s revenue and accounting systems.

Under the previous system, customs brokers often provided financial security on behalf of importers to facilitate participation in the RPP program.

Under CARM, responsibility has shifted directly to importers.

Businesses now generally need to:

  • Register in the CARM Client Portal
  • Establish their own importer accounts
  • Post financial security where required
  • Manage customs accounting directly through CARM

This means importers now play a more active role in maintaining their eligibility for Release Prior to Payment privileges.

Financial Security Requirements Under CARM

One of the most significant changes introduced by CARM involves financial security requirements.

To maintain Release Prior to Payment privileges, importers generally need to provide financial security to CBSA.

This security may be provided through:

  • A surety bond
  • Cash security deposit
  • Other approved financial arrangements

The amount of required security is typically based on the importer’s duty and tax exposure.

By requiring importers to post their own security, CBSA gains greater visibility into importer compliance while reducing reliance on third-party financial arrangements.

Businesses that fail to maintain adequate security may lose access to RPP benefits.

How Goods Are Released Under RPP

When an importer maintains valid RPP privileges under CARM, goods may be released before duties and taxes are paid.

The process generally follows these steps:

  1. Goods arrive in Canada.
  2. Customs release information is submitted.
  3. CBSA reviews the shipment.
  4. Goods are released.
  5. Duties and taxes are accounted for through CARM.
  6. Payment is made according to established deadlines.

This process allows importers to keep inventory moving while still meeting their customs obligations.

For businesses operating on tight inventory schedules, this can provide significant operational advantages.

The Role of the CARM Client Portal

The CARM Client Portal has become the central platform for managing customs accounting and revenue obligations.

Through the portal, importers can:

  • View account balances
  • Access statements of account
  • Monitor transactions
  • Manage financial security
  • Authorize customs brokers
  • Review accounting information

Because RPP eligibility is now closely tied to CARM participation, maintaining an active and properly configured portal account is critical.

Importers that fail to manage their portal effectively may encounter disruptions in customs processing.

Benefits of Maintaining RPP Access

Businesses that qualify for RPP continue to enjoy several important advantages.

These include:

  • Faster cargo release
  • Improved cash flow
  • Simplified import operations
  • Reduced border delays
  • Greater supply chain predictability

For companies importing products such as automotive parts, electronics, industrial equipment, or consumer goods, these benefits can have a measurable impact on operational efficiency.

The larger the import volume, the greater the potential value of maintaining RPP privileges.

Although the new system offers greater transparency, some importers have encountered challenges during the transition.

Common issues include:

Insufficient Financial Security

Failure to maintain adequate security may affect release privileges.

Incomplete Portal Registration

Missing account information can delay customs processing.

Delegation Errors

Improper broker authorization settings may create operational problems.

Missed Payment Deadlines

Late payments can affect account standing and customs privileges.

Limited Internal Familiarity

Businesses unfamiliar with CARM requirements may experience avoidable disruptions.

Most of these issues can be avoided through proactive account management and regular monitoring.

Best Practices for Managing RPP Under CARM

Importers can maximize the benefits of RPP by maintaining strong compliance processes.

Recommended practices include:

  • Register and maintain a CARM Client Portal account
  • Review financial security requirements regularly
  • Monitor statements of account
  • Maintain accurate importer records
  • Ensure broker delegations remain current
  • Pay duties and taxes on time
  • Review customs activity regularly

Treating customs administration as an ongoing business process rather than a one-time setup exercise can significantly reduce compliance risks.

Conclusion

Release Prior to Payment remains one of the most valuable customs programs available to Canadian importers. While CARM has changed how the program operates, the underlying benefit remains the same: allowing goods to move efficiently across the border before duties and taxes are paid.

Importers that understand the new requirements, maintain appropriate financial security, and actively manage their CARM accounts can continue to enjoy streamlined customs clearance and improved cash flow. As Canada’s customs environment continues to evolve, understanding programs such as RPP is becoming an increasingly important part of successful import management.

FAQs

What is Release Prior to Payment (RPP)?

RPP allows eligible importers to obtain release of goods before duties and taxes are paid. 

Did CARM eliminate the RPP program?

No. RPP still exists, but importers must now meet CARM requirements to participate. 

Do importers need financial security under CARM?

In most cases, yes. Financial security is generally required to maintain RPP privileges. 

What types of financial security are accepted?

Common options include surety bonds and cash security deposits. 

Can importers still use customs brokers under CARM?

Yes, but broker authority must be properly delegated through the CARM Client Portal. 

What happens if financial security lapses?

Importers may lose access to Release Prior to Payment privileges. 

Is the CARM Client Portal mandatory?

Importers generally need access to the portal to manage customs accounting and RPP participation. 

Why is RPP important?

It helps improve cash flow, speed cargo release, and reduce border delays.