Drawback Program

Overview of the Drawback Program program:

The Duty Drawback Program offered by the Canada Border Services Agency (CBSA) allows businesses to obtain a refund of duties paid on imported goods that are later exported or used in the manufacture of exported goods. This program is designed to reduce the cost of importing goods for businesses that are involved in international trade, making it easier for Canadian businesses to compete in global markets.

Benefits of the Drawback Program program:

• Reduce Costs for Exporters: Provide financial relief to Canadian businesses by refunding duties paid on imported goods that are re-exported or used in the production of exported goods.
• Promote International Trade: Encourage Canadian businesses to engage in international trade by lowering the cost of importing materials and components.
• Support Manufacturing and Exporting: Assist manufacturers and exporters in reducing their operating costs, thereby enhancing their competitiveness in global markets.

Eligibility criteria of the Drawback Program program:

• Apply if:
• You import goods that are later exported as-is;
• You import goods to produce other goods for export; or
• You destroy imported goods that are obsolete or surplus, or that are manufactured into an item that is obsolete or surplus.
• You may qualify for a drawback, which is a refund of customs duties paid for imported goods. You may import goods without paying duties if:
• The goods are eventually exported; or
• The goods are manufactured and eventually exported.
• In most cases, you have to present a claim within four years (five years for destroyed goods) from the time the goods arrive in Canada. You must export or destroy the goods before you can file a claim.
• For motor vehicles, you have to present a claim within four years from the time the CBSA releases the imported vehicle.
• 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.