Custom & Excise Bonds

Customs and excise bonds are required by the Government of Canada (obligee) from customs brokers, corporations, importers, storage companies, shippers, and others (principals) involved in import, handling, sales or manufacture of goods subject to tariffs, duties and taxes.

In a CUSTOMS BOND the surety guarantees to the obligee that the principal will remit certain tariffs, duties and taxes that will become due and payable. The bond penalty is usually subject to a preset maximum depending on the volume of business expected.

Customs bonds provide principals with the opportunity for immediate release from customs of their imported goods prior to final determination and payment of required tariffs, duties and taxes.

Examples of customs bonds are:

• Customs brokers licence bond
• Customs bonded warehouse bond
• Bonded air carrier
• Customs sufferance warehouse bond
• Duty-free shop bond
• Release of goods bond
• Temporary importation of articles bond

In an EXCISE BOND the surety guarantees to the obligee that the principal will remit certain excise taxes that become due and payable. The bond penalty is usually subject to a preset maximum amount depending on the expected volume of business.

Companies that acquire products on which excise taxes are charged must generally pay those taxes prior to using or shipping such products. The excise tax bond provides such companies (principals) with the opportunity to immediately use or ship certain goods prior to the final determination and payment of the required excise taxes.

Examples of excise bonds are:

• Excise Tax Act bonds
• General excise carrier bond
• Denatured alcohol bond
• Excise bond for tobacco manufacturer