The Canada Border Services Agency (CBSA) has confirmed that as of May 20, 2025, at 3:00:01 a.m. EDT, importers without Release Prior to Payment (RPP) financial security on file will be required to pay duties and taxes at the time of release.
This change, following the end of the CARM transition period, is expected to cause significant delays and disruptions in customs entry processing and cargo release for impacted importers. Without RPP privileges, importers must shift to CAD C-Type entries, which require payment before goods can be released — a process that is far less efficient and can stall supply chain operations.
The transition measures introduced in Customs Notice 24-27 gave importers a grace period to adjust to the new CARM requirements. While many have already posted the required financial security, a substantial number have not yet taken action. For those with dutiable and taxable imports, failure to comply will result in automatic removal from RPP on May 20.
Importers still without RPP security are urged to act immediately to avoid clearance delays, cargo holds, and potential supply chain disruptions. The CBSA has confirmed that future enrollment in RPP remains possible, but delays in securing financial coverage may lead to short-term operational impacts.
If you have any questions or require assistance obtaining an RPP Surety Bond, contact your Mohawk Global representative or reach out directly.