{"id":6219,"date":"2026-06-15T05:03:17","date_gmt":"2026-06-15T09:03:17","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=6219"},"modified":"2026-06-17T05:09:45","modified_gmt":"2026-06-17T09:09:45","slug":"release-prior-to-payment-rpp-under-carm","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/release-prior-to-payment-rpp-under-carm\/","title":{"rendered":"What is Release Prior to Payment (RPP) and How Does It Work Under CARM?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">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).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the implementation of the Canada Border Services Agency&#8217;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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is Release Prior to Payment (RPP)?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Release Prior to Payment is a CBSA program that allows imported goods to be released before duties and taxes are paid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">RPP allows qualified importers to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Obtain the release of goods before payment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidate customs accounting obligations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improve cash flow management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce border delays<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Streamline import operations<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For many businesses, RPP has long been considered an essential component of efficient importing.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why RPP Matters for Canadian Importers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Importing often involves significant duty and tax obligations, particularly for businesses bringing in large or frequent shipments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If payment had to be made before every shipment could be released, importers could face:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Delayed inventory availability<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increased administrative work<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash flow pressure<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Slower supply chain operations<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">RPP helps address these issues by allowing businesses to receive their goods first and settle their financial obligations afterward according to CBSA&#8217;s prescribed timelines.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As supply chains become more complex, maintaining access to RPP has become increasingly important for many Canadian importers.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How CARM Changed the RPP Program<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The launch of CARM fundamentally changed how importers interact with CBSA&#8217;s revenue and accounting systems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the previous system, customs brokers often provided financial security on behalf of importers to facilitate participation in the RPP program.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under CARM, responsibility has shifted directly to importers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses now generally need to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Register in the CARM Client Portal<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Establish their own importer accounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post financial security where required<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manage customs accounting directly through CARM<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This means importers now play a more active role in maintaining their eligibility for Release Prior to Payment privileges.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Financial Security Requirements Under CARM<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most significant changes introduced by CARM involves financial security requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To maintain Release Prior to Payment privileges, importers generally need to provide financial security to CBSA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This security may be provided through:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A surety bond<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash security deposit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other approved financial arrangements<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The amount of required security is typically based on the importer&#8217;s duty and tax exposure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By requiring importers to post their own security, CBSA gains greater visibility into importer compliance while reducing reliance on third-party financial arrangements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses that fail to maintain adequate security may lose access to RPP benefits.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Goods Are Released Under RPP<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When an importer maintains valid RPP privileges under CARM, goods may be released before duties and taxes are paid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The process generally follows these steps:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Goods arrive in Canada.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customs release information is submitted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CBSA reviews the shipment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Goods are released.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Duties and taxes are accounted for through CARM.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Payment is made according to established deadlines.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">This process allows importers to keep inventory moving while still meeting their customs obligations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For businesses operating on tight inventory schedules, this can provide significant operational advantages.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Role of the CARM Client Portal<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The CARM Client Portal has become the central platform for managing customs accounting and revenue obligations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Through the portal, importers can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">View account balances<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Access statements of account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitor transactions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manage financial security<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Authorize customs brokers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review accounting information<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Because RPP eligibility is now closely tied to CARM participation, maintaining an active and properly configured portal account is critical.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Importers that fail to manage their portal effectively may encounter disruptions in customs processing.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Benefits of Maintaining RPP Access<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Businesses that qualify for RPP continue to enjoy several important advantages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Faster cargo release<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Improved cash flow<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Simplified import operations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduced border delays<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Greater supply chain predictability<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For companies importing products such as <\/span><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/cbsa-trade-verification-priorities-guide\/\"><span style=\"font-weight: 400;\">automotive parts<\/span><\/a><span style=\"font-weight: 400;\">, electronics, <\/span><a href=\"https:\/\/clearit.ca\/canadian-customs-broker-blog\/import-3d-printers-manufacturing-equipment-canada\/\"><span style=\"font-weight: 400;\">industrial equipment<\/span><\/a><span style=\"font-weight: 400;\">, or consumer goods, these benefits can have a measurable impact on operational efficiency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The larger the import volume, the greater the potential value of maintaining RPP privileges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the new system offers greater transparency, some importers have encountered challenges during the transition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Common issues include:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Insufficient Financial Security<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Failure to maintain adequate security may affect release privileges.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Incomplete Portal Registration<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Missing account information can delay customs processing.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Delegation Errors<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Improper broker authorization settings may create operational problems.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Missed Payment Deadlines<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Late payments can affect account standing and customs privileges.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Limited Internal Familiarity<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Businesses unfamiliar with CARM requirements may experience avoidable disruptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most of these issues can be avoided through proactive account management and regular monitoring.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Best Practices for Managing RPP Under CARM<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Importers can maximize the benefits of RPP by maintaining strong compliance processes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recommended practices include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Register and maintain a CARM Client Portal account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review financial security requirements regularly<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Monitor statements of account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Maintain accurate importer records<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure broker delegations remain current<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pay duties and taxes on time<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review customs activity regularly<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Treating customs administration as an ongoing business process rather than a one-time setup exercise can significantly reduce compliance risks.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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&#8217;s customs environment continues to evolve, understanding programs such as RPP is becoming an increasingly important part of successful import management.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">FAQs<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">What is Release Prior to Payment (RPP)?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">RPP allows eligible importers to obtain release of goods before duties and taxes are paid.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Did CARM eliminate the RPP program?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">No. RPP still exists, but importers must now meet CARM requirements to participate.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Do importers need financial security under CARM?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In most cases, yes. Financial security is generally required to maintain RPP privileges.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What types of financial security are accepted?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Common options include surety bonds and cash security deposits.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Can importers still use customs brokers under CARM?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, but broker authority must be properly delegated through the CARM Client Portal.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What happens if financial security lapses?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Importers may lose access to Release Prior to Payment privileges.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Is the CARM Client Portal mandatory?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Importers generally need access to the portal to manage customs accounting and RPP participation.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Why is RPP important?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It helps improve cash flow, speed cargo release, and reduce border delays.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217;s (CBSA) Assessment [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":6220,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[837,749],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/6219"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/30"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=6219"}],"version-history":[{"count":1,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/6219\/revisions"}],"predecessor-version":[{"id":6221,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/6219\/revisions\/6221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/6220"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=6219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=6219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=6219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}