Release Prior to Payment RPP in Canada
- Verified & Reviewed · Last updated March 2026
Release Prior to Payment RPP in Canada allows eligible importers to obtain release of goods before paying duties and taxes, helping reduce payment pressure at release.
Under the Canada Border Services Agency framework, RPP is now closely tied to CARM, importer registration, and financial security managed through the CARM Client Portal.
CARM / Portal Setup
Financial Security Rules
RPP Enrollment Steps
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Table of Contents
What Is Release Prior to Payment in Canada
Release Prior to Payment, or RPP, is a customs arrangement that allows eligible importers in Canada to have their goods released before duties and taxes are paid. In this process, the goods are released by CBSA, which is the authority responsible for deciding whether imported goods can be released. The importer still has to pay what is owed, but payment does not have to be made at the exact time of release.
Here, “payment” mainly refers to the duties and taxes owed on the imported goods. It does not mean freight charges, payment to the supplier, or other unrelated business costs.
In simple terms, RPP means the goods are released first, and the duties and taxes are paid later through the normal customs process. For businesses that import goods regularly, this can make customs clearance easier to manage and reduce payment pressure at release.
What Happens If the Importer Does Not Pay on Time
Release Prior to Payment does not mean the importer can avoid payment. It only means the goods can be released before duties and taxes are paid. The importer must still pay the full amount by the required deadline.
If payment is not made on time, the amount becomes overdue. This may lead to interest, penalties, collection action, and problems with future use of the program. In some cases, the importer may no longer be able to use the “release first, pay later” approach and may need to pay duties and taxes at the time of release instead.
In simple terms, RPP allows delayed payment, but it does not remove the obligation to pay.
Why Release Prior to Payment Matters for Importers
Release Prior to Payment matters because it gives importers more flexibility. Instead of paying duties and taxes at the time of release, they can pay later through the normal customs process. This helps reduce cash pressure and makes it easier to manage regular shipments.
It can also help goods move more smoothly. For businesses that import often, paying at release for every shipment can slow things down. RPP makes the process easier, more stable, and better suited to regular import activity.
In practical terms, RPP can help importers:
reduce payment pressure at release
improve cash flow
make regular shipments easier to manage
support smoother cargo movement
How CARM Changed the RPP Program
CARM as the Official System
CARM is now the official system through which the CBSA assesses and collects duties and taxes on commercial goods imported into Canada. That means release prior to payment must now be understood within the CARM environment rather than the older broker-led model many importers were used to.
Why Customs Brokers Can No Longer Provide RPP Security
One of the biggest changes is responsibility for security. CBSA guidance states that, as of May 20, 2025, importers who require release prior to payment of duties must have posted their own financial security in the CARM Client Portal. Importers that have not done so are not eligible for release prior to payment.
This is why older articles that assume broker-posted security still supports release prior to payment are now outdated. Brokers can still support importers, but the importer can no longer rely on a broker’s security to maintain RPP privileges under the current process.
What the New Process Means for Importers
The new process gives importers more direct control, but also more direct responsibility. Businesses that want release prior to payment now need to manage the core setup themselves inside the CARM framework.
That usually means the importer must:
register in the CARM Client Portal
confirm the correct import program account
enroll in the RPP sub-program
post financial security and monitor status
Overall, CARM did not remove the value of release prior to payment. It changed who must control the process and how that privilege is maintained.
Written Security Agreement, Customs Bond, and Cash Security Deposit
Written Security Agreement
A written security agreement is one of the main approved ways to meet the RPP financial security requirement. In official CBSA language, this is the standard 50 percent security option tied to the importer’s highest monthly accounts receivable.
Customs Bond, RPP Bond, and Surety Bond
Many importers do not search using official CBSA terminology. Instead, they search for terms like customs bond, RPP bond, surety bond, or payment bond. In practice, these terms usually reflect the same business question: what kind of security can support release prior to payment in Canada. CBSA guidance identifies customs bond as an example within the written security agreement framework and also refers to accepted security providers.
That means the real issue is not which informal term is used in a search query. The real issue is whether the selected security arrangement is acceptable under current CBSA rules and properly posted in the portal.
Cash Security Deposit
A cash security deposit is the second main option. Under this method, the importer must provide 100 percent of the required amount. This may be workable for some businesses, but it can tie up more cash than a written security agreement, which is why many importers compare both options before choosing a structure.
How to Enroll in the RPP Program Through the CARM Client Portal
The enrollment path is much easier to understand when broken into steps.
Step 1: Register the business in the CARM Client Portal
Businesses importing commercial goods into Canada must first register in the portal and obtain the proper business number structure needed for customs activity. Importers who want to benefit from electronic release prior to the payment of duties and taxes must also enroll in RPP and obtain financial security.
Step 2: Confirm the import program account
The importer should confirm the correct RM import program account, because financial security and RPP enrollment are tied to that account. If the account structure is wrong, the rest of the setup can be delayed or misapplied.
Step 3: Enroll in the RPP sub-program
CBSA’s CARM guidance directs users to the relevant portal functions for release prior to payment. This is the point at which the importer formally connects the account to the RPP program inside the system.
Step 4: Post financial security and review status
Once enrollment is in motion, the importer must post financial security and review the account to confirm that RPP status is active. Without valid security in place, the importer will not be eligible for release prior to payment.
Common Mistakes Importers Should Avoid
Relying Too Much on Customs Brokers
Some importers still assume customs brokers can handle the full RPP security side for them. That assumption no longer fits the current model. Brokers may still support operationally, but the importer must hold the required security directly under the CARM framework.
Underestimating the Security Requirement
Another common mistake is calculating security based on average activity instead of the highest monthly accounts receivable. Since CBSA bases the requirement on peak exposure, a low estimate can create compliance problems and affect release privileges later.
Waiting Too Long to Complete Setup
Some businesses delay enrollment and security posting until a shipment becomes urgent. That often leads to avoidable problems. CBSA stated that importers not eligible for RPP after the transition ended on May 20, 2025 would need to submit a CAD C-Type and pay applicable duties and taxes at the time of release.
Most RPP problems do not come from the program itself. They come from incomplete setup, weak forecasting, or outdated assumptions about how release prior to payment works after CARM.
Release Prior to Payment vs Paying Duties at Release
The difference between the two models is straightforward. With release prior to payment, eligible importers can obtain release first and settle duties and taxes afterward through the regular accounting process. Without RPP, importers generally must pay duties and taxes upon release.
For regular importers, that difference affects more than payment timing. It can change cash flow, release predictability, and how smoothly recurring cargo movements are managed. That is why release prior to payment is often treated as a strategic customs tool rather than just an administrative detail.
Frequently Asked Questions
Related Shipping Guides to Canada
Understand Release Prior to Payment in Canada
Obtain release before paying duties and taxes
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Learn how Release Prior to Payment works in Canada and what importers need to prepare under the CARM framework.