Release Prior to Accounting in Canada: Understanding the Courier Import Clearance System

International trade requires speed. Millions of small parcels enter Canada every day through courier companies such as DHL, FedEx, and UPS.

To ensure these shipments move quickly, the Canada Border Services Agency (CBSA) allows a special procedure known as Release Prior to Accounting.

This article explains what Release Prior to Accounting means, when it is used, and how duties and taxes are later declared and paid.

What Is Release Prior to Accounting?

Release Prior to Accounting is a customs procedure that allows goods to be released by CBSA before the importer or courier files the full customs accounting declaration.

Normally, customs clearance involves three stages:

1. Release of goods
2. Accounting (declaration of duties and taxes)
3. Payment of duties and taxes

Under this system, the sequence changes to:

Release → Accounting → Payment

This means goods can be delivered before the full customs declaration is completed.

Why CBSA Allows Release Prior to Accounting

The primary purpose of this system is speed and efficiency for e-commerce shipments.

Courier companies process thousands of parcels daily. If every parcel required full accounting before release, warehouses and airports would face delays and congestion.

To keep supply chains moving, CBSA allows approved courier companies to release goods quickly and complete accounting afterward.

Which Companies Can Use This Procedure?

Release Prior to Accounting is mainly used by courier companies authorized under the Courier Low Value Shipment (CLVS) Program.

Examples include:

• DHL
• FedEx
• UPS

These companies operate high-volume parcel networks and maintain substantial financial security with CBSA.

Because of this compliance oversight, they may release shipments before accounting.

What Is the Accounting Deadline?

When shipments are released before accounting, the courier must later submit customs accounting.

According to CBSA procedures:

• Shipments released during a month must be accounted for by the 24th day of the following month.

Example:

If a parcel arrives on 31 March, the courier must submit the accounting declaration by 24 April.

This accounting generally includes:

• Value of goods
• Country of origin
• Tariff classification
• Applicable duties and taxes

When Is Payment Made to CBSA?

Payment to CBSA follows a monthly cycle.

For shipments released in March:

• Accounting deadline: 24 April
• Payment deadline: Last business day of April

This effectively gives the courier roughly one month of credit before payment is due.

Practical Example

Shipment arrives in Canada: 31 March

1. The courier submits electronic manifest data.
2. CBSA grants immediate release.
3. The parcel is delivered to the customer.
4. The courier files accounting by 24 April.
5. Duties and taxes are paid to CBSA by 30 April.

This process enables rapid parcel movement through the logistics chain.

How Is This Different from Normal Imports?

Most commercial importers do not use Release Prior to Accounting.

Instead, they usually follow Release with Accounting.

That process typically works as:

Arrival → Accounting Filed → Release → Payment Later

The accounting declaration (Commercial Accounting Declaration or CAD) is filed before goods are released.

However, payment of duties may still be deferred through the Release Prior to Payment (RPP) program.

Why Financial Security Is Important

Because goods are released before accounting and payment, courier companies must maintain strong financial guarantees.

These may include:

• Large customs security bonds
• Strict compliance monitoring
• Reporting obligations to CBSA

This protects government revenue while allowing faster clearance.

Importance for Importers and Exporters

Understanding Release Prior to Accounting helps businesses understand why courier shipments often arrive faster than traditional cargo shipments.

It also explains why accounting and duty payments may happen later in the process.

Most commercial importers still rely on customs brokers who file declarations before release.

Conclusion

Release Prior to Accounting is a specialized customs procedure designed to support rapid courier imports into Canada.

By allowing goods to be released before accounting and payment, CBSA helps modern e-commerce logistics remain efficient while protecting revenue through financial security requirements.

Disclaimer

This article is intended for general educational purposes only to help importers and exporters understand Canadian customs procedures.

It does not constitute legal advice. Readers should consult the Canada Border Services Agency, a licensed customs broker, or a qualified barrister or solicitor for guidance on specific customs compliance matters.