If you import goods that are subsequently exported — as-is or after further processing — Canada’s Duty Drawback Program can refund the duties you paid, including trade-war surtaxes in eligible cases.
What it is
Drawback is a CBSA-administered refund mechanism: duties paid on imported goods can be recovered when those goods are exported from Canada. The federal government has pointed to the Duty Drawback Program, alongside the Duties Relief Program, as a route for businesses to receive a refund for tariffs paid where goods are eventually exported.
Key parameters
- Claim window: drawback claims can generally be filed within four years of the importation of the goods.
- Who claims: the importer, exporter, or processor — with waivers between parties where multiple businesses handled the goods.
- Documentation: import entries, proof of export, and records tying the exported goods to the imported ones. Weak record links are the most common reason claims stall.
Why it matters right now
Industry analysis suggests substantial drawback value goes unclaimed — customs brokerage GHY International has estimated that over $3 billion in drawback duties and taxes go unclaimed each year across Canada and the US. With counter-tariff surtaxes returning September 8, businesses that re-export US-origin goods should map their eligibility before the costs stack up.
Drawback vs. the alternatives
If you know at import time that goods will be exported, the Duties Relief Program (upfront non-payment) may fit better than after-the-fact drawback; if your goods stay in Canada, look instead at remission or Chapter 98/99 provisions. Guides to each are in this series.
Sources: CBSA — Duty Drawback Program (Memorandum D7-4-2); Canada.ca — Canada’s response to U.S. tariffs (business supports); GHY International duty drawback analysis.
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