CARMS Importer Bonds Quebec City
Quebec City has a thriving economy, near the top of Canada’s gross domestic product statistics in large population centers. Along with its sister city of Levis, Quebec City boasts over a dozen separate manufacturing areas. Local importers deliver vital raw materials for industrial customers and components for the rapidly growing IT sector — all while complying with the CBSA Assessment and Revenue Management program. With so many flourishing B2B sales opportunities, CARMS importer bonds in Quebec City have become practically essential for maintaining a consistent flow of goods.
What Are the Leading Imports in Quebec City?
Quebec City imports approximately $10 billion in goods every year. Vehicles are a large category of imports, such as SUVs, vans and trucks. Other leading imports include raw minerals, equipment for the power generation sector, aviation and aerospace manufacturing parts, healthcare supplies and specialized chemicals for medical imaging.
Goods from the United States account for more than one-third of all imports (over $2 billion). The list of primary sources for imported products also includes China ($870 million in goods), Italy ($250 million), Germany ($340 million) and Brazil ($300 million).
Why Is There a Need for CARMS Importer Bonds in Quebec City?
In the past, Canadian importers often partnered with customs brokers to bring goods smoothly into the country. These brokers usually handled the process of Release Prior to Payment for their clients, allowing imported products to be released from customs promptly and smoothly. In recent years, however, the Canada Border Services Agency has changed its requirements for bonds used in the RPP program, stipulating that importers must obtain the necessary surety bonds themselves.
With CARMS importer bonds in Quebec City, importing organizations can keep participating in the RPP program without needing to tie down a hefty amount of working capital as a guarantee. Instead, the surety bond acts like insurance, promising payment to the CBSA if the principal is unable to pay the necessary fees. This significantly reduces the financial impact of CARMS compliance for importers.
Which Importers Need to Apply for a Surety Bond?
All importers in Canada need to comply with CARM regulations. Import businesses in Quebec City only have a few legal options for meeting CBSA payment requirements with imported goods.
What Are the Benefits of CARMS Importer Bonds for Quebec City Companies?
There are at least three advantages to using importer bonds for CARMS instead of cash surety:
- Lower premiums: Compared to credit cards and bank letters of credit, CARMS surety bonds are more affordable for short-term and long-term needs.
- Enhanced speed: Once organizations partner with a surety bond provider, they don’t need to reapply for every border shipment, allowing for a streamlined supply chain.
- More flexible cash flow: By avoiding the need to freeze business capital as surety, importers can adapt more easily to market changes and opportunities.
Surety bonds aren’t the only avenue of CARMS compliance, but they are one of the most practical and business-friendly solutions.
Sources:
https://policyoptions.irpp.org/magazines/january-2024/quebec-city-economic-tiger/
https://www.city-journal.org/article/nordique-tiger
https://quebecinternational-prod.s3.ca-central-1.amazonaws.com/uploads/SJ1nJH0BgjcoQkAb9pPyfQ.pdf
https://oec.world/en/profile/subnational_can/quebec
https://en.wikipedia.org/wiki/Economy_of_Quebec#Imports_and_exports
https://www.hubinternational.com/en-CA/products/business-insurance/surety-bonds/