Trade incentives programs
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.
Drawbacks can also be given when imported goods go beyond their natural shelf life, become obsolete, or become surplus. In these cases, the goods must be destroyed by order of a Canada Border Services Agency (CBSA) officer. See Memorandum D7-2-3, Obsolete or Surplus Goods, for more information.
You can temporarily use a motor vehicle in Canada before you export it without affecting your eligibility for a drawback. See Memorandum D7-3-2 Exported Motor Vehicles Drawback for the temporary use of vehicles.
How do I qualify?
- 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- You destroy imported goods that are obsolete or surplus, or that are manufactured into an item that is obsolete or surplus.
Note: If goods are exported to the United States or Mexico, there may be restrictions under the North American Free Trade Agreement (NAFTA). See Memorandum D7-4-3, NAFTA Requirements for Drawback and Duty Deferral, for more information.
How do I claim a drawback?
Complete Form K32, Drawback Claim. Attach documents establishing that the goods qualify and send the package to your local CBSA office.
If you have destroyed goods, attach Form E15, Certificate of Destruction/Exportation.
Purchasing a vehicle you plan to export? You 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. See Memorandum D7-3-2 Exported Motor Vehicles Drawback.
When more than one person is eligible to file a drawback claim, waivers must be submitted by all claimants before the CBSA can process yours.
How soon do I need to make a claim?
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.
What do I need to know about payment?
The CBSA may give you a full or partial refund when you file your claim. When the Agency partially refunds a claim, it will pay you any balance owing after your claim is verified.
Should you not receive a full refund within 90 days of submission, the CBSA will pay interest on any balance owed to you.
For more information on the Drawback Program or for help preparing your claim, contact your local CBSA office.
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