Duty Drawback Program
No fixed amount
Rebate
Description:
The Drawback Program can help Canadian companies compete in export markets by removing the domestic duty impact from their commercial goods. The program grants a drawback (refund) of duties that were paid on imported goods if:
– the goods are eventually exported in the same condition, or
– the goods are consumed or expended through a manufacturing process and eventually exported
Additionally, Canadian companies may have commercial goods that are eligible for drawbacks under the Obsolete or Surplus Goods Program. The purpose of this program is to help Canadian companies compete internationally by reducing the export costs on valueless goods that will not enter the domestic market.
Comments on Funding:
The CBSA may give you a full or partial refund when you file your claim. For partial refunds, we will pay you any balance owing after your claim is verified.
Should you not receive a full refund within 90 days of submission, we will pay interest on any balance owed to you.
When to file a claim
In most cases, you have to present a claim within 4 years (5 years for destroyed goods) from the time the goods enter Canada. You must export or destroy the goods before you can file a claim.
For motor vehicles, you have to present a claim within 4 years from the time the CBSA releases the imported vehicle.
Continuous Intake
Eligibility:
Applicants must:
1. import commercial goods that are later exported in the same condition
2. import goods to produce other goods for export
3. destroyed imported goods that are obsolete or surplus, or that are manufactured into goods that are obsolete or surplus
4. If goods are exported to the United States or Mexico: 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
Application Steps:
Applicants must claim directly in the CBSA Assessment and Revenue Management (CARM) Client Portal.
1. For destroyed foods
The destruction of the goods must be substantiated by means of a certified Form E15, Certificate of Destruction/Exportation, witnessed by a CBSA officer or by an arms-length qualified third party.
2. For Vehicles:
Applicants must make arrangements with the importer, car dealer, or manufacturer to file the drawback claim. You may be able to reduce the purchase price by the drawback amount.
Documentation Needed:
Applicants must submit:
1. a valid importer BN15 program account number
2. For destroyed goods
a. a certified Form E15, Certificate of Destruction/Exportation, witnessed by a CBSA officer or by an arms-length qualified third party.
Other Things to Note:
Note: If you are a Canadian resident, you must export the vehicle within 30 days after purchase. If you are a non-resident, you have 12 months.
About the author
Maurice
