On January 15, 2008, the Canada Border Services Agency (CBSA) issued CN-08-001 "Changes and Updates Made to Form D120 - Customs Bond" (see the following link - http://www.cbsa.gc.ca/publications/cn-ad/cn08-001-eng.html) in which the CBSA announced that it had made changes to the Form D120 Customs Bond Form. The Form D120 is a mutli-purpose bond used to provide monetary security for payments required under a number of programs supervised and monitored by the CBSA.
The improved Form D120 is effective for new security bonds posted after January 2, 2008. Exisitng customs bonds previously filed remain valid until further notice.
The changes are not substantive in nature. The following revisions have been made:
- The Form D120 is now a fillable form.
- The agency's name has been changed to Canada Border Services Agency.
- The word "co-principal" has been deleted as CBSA programs do not accept co-principals on customs bonds.
- In Section 5a, the words "holding the security" have been emphasized to clarify where the cancellation notice should be sent.
- The authorized titles of individuals who can sign for the principal have been added to Section 7. This is to clarify who has the authority to sign a customs bond.
- The business number has been added to Section 7. This will facilitate the process of approval of the customs bond.
- The titles Notary Public, Commissioner of Oath, or by a lawyer have been added to Section 8. This clarifies who will be accepted as a witness.
Notwithstanding the fact the changes are not substantive in nature, the new Form 120 will be required for future requirements to post security. Likely, AMPs penalties will be imposed if the incorrect form is used. Consequently, importers should obtain the new version of the Form D120 and replace the old forms in computer databases. The new form may be obtained at the following link - http://www.cbsa.gc.ca/E/pbg/cf/d120/d120-fill-e.pdf
I acknowledge the inherent inconsistency in the CBSA announcement. The new Form D120 is stated in CN-08-001 to be effective as of January 15, 2008. CN-08-001 also indicates that the new Form D120 applies in respect of customs bonds posted after January 2, 2008. So - what happens if a customs bond was posted on January 6, 2008 at a time when the new form was not effective? I have asked the CBSA and they have indicated that the old version on the Form D120 should be accepted up to January 14, 2008 - but that starting January 15, 2008, the new form must be used.
If you have any question about Canada's customs bond requirements, please contact Canadian counsel (such as Cyndee Todgham Cherniak, Michael Flavell, Geoffrey Kubrick or Martin Masse at Lang Michener LLP)