The Duties Relief Program lets qualified Canadian businesses import commercial goods without paying duties at the border — provided the goods (or products made from them) are later exported. It is the before-the-fact sibling of duty drawback.
How it works
Businesses apply to the CBSA for program authorization. Once licensed, they can import eligible goods without paying duties — including, per government guidance during the trade war, relief from tariff countermeasures — so long as the goods are eventually exported within the program’s timelines. If the goods end up staying in Canada, the relieved duties become payable.
Who it fits
- Manufacturers importing inputs for products that ship to foreign customers
- Distributors moving goods through Canada to other markets
- Processors doing work-in-Canada on goods that return abroad
The trade-off
Relief is upfront cash-flow protection, but it comes with compliance obligations: books and records that trace imported goods to exports, and exposure to assessment if traceability fails. Businesses without strong inventory record-keeping often find after-the-fact drawback simpler, at the cost of financing the duties in the meantime.
Sources: CBSA — Duties Relief Program (Memorandum D7-4-1); Canada.ca — Canada’s response to U.S. tariffs (business supports).
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