Duty Drawback Program: Who Qualifies and What You Get
Learn how importers can get a refund on duties paid for goods that are later exported from Canada.
The Duty Drawback Program allows businesses to claim a refund on the duties they paid when importing goods that are eventually exported out of the country.
Who it's for
This program is designed for importers who bring goods into the country and then re-export those same goods to a different location.
What you get
You can receive a refund of the duties you previously paid on imported goods once those goods have been exported.
What it costs you
Applying for this refund involves complex paperwork and administrative tasks. Because of the technical nature of the filing, most businesses find they need to hire a customs broker to manage the process.
The catch to know
This program is generally not profitable for low-value dropshipping operations. It is most effective for businesses handling high volumes of re-exported goods where the duty refunds outweigh the administrative costs.
How to apply
- Ensure your goods are exported after the initial import.
- Prepare the necessary documentation to prove the goods were re-exported.
- Work with a customs broker to manage the complex filing requirements.
- Submit your claim through the official portal: https://www.cbsa-asfc.gc.ca/import/drawback/menu-eng.html