The Customs Duty Drawback is a federal trade incentive program designed to encourage Canadian businesses to export value-added goods by transforming imported raw materials. Companies of all sizes and from across Canada may get a refund of the customs duties they paid upon importing goods to Canada when they export the product made of imported goods from Canada. The program is administered by the Canadian Border Services Agency (CBSA).
Eligibility Criteria: Customs Duty Drawback
- Must be a Canadian legal entity: sole proprietor, corporation or partnership
- Must have an export-import account number with CRA
- Must have paid customs duties on imported goods in the past four years
- Must be in one of the following three situations:
- Import goods that are later exported as-is;
- Import goods to produce other goods for export; or
- Destroy imported goods that are obsolete or surplus, or that are manufactured into an item that is obsolete or surplus.
Eligible Cost: Customs Duty Drawback
- Customs duty paid on goods imported to Canada
- There is no minimum or maximum amount of customs duty drawback
- Calculate the amount of customs duty drawback
- Fill out customs duty drawback claim form
- File customs duty drawback claim form
- Prepare the client for claim verification
Special Case: Customs Duty Drawback on goods exported to the USA and Mexico (CUSMA countries):
- Canada-US-Mexico trade agreement (CUSMA) places limits on the amount of customs duties available for drawback.
- Only certain goods are affected by the limitations on the duty drawback.
- For exported goods affected by the limitations, drawback, or relief of customs duties cannot exceed:
- (a) the lesser of the total amount of customs duties paid or owed on the goods imported into Canada; and
- (b) the total amount of customs duties paid on the exported good in the CUSMA country where the good was imported.