If your business imports goods into Canada and later exports them, you may be able to recover the duties you paid through Canada's Duty Drawback Program. Like its U.S. counterpart, Canadian drawback is one of the most overlooked ways for importers to get money back — and with today's tariff environment, the amounts at stake are meaningful.
This guide explains how Canadian duty drawback works, who qualifies, and how to go about claiming it.
What Is the Canadian Duty Drawback Program?
Duty drawback in Canada is a refund of customs duties paid on imported goods that are subsequently exported, either in the same condition or after being used to manufacture other goods. The program is administered by the Canada Border Services Agency (CBSA) and is designed to support Canadian exporters by ensuring they aren't burdened with duties on goods that ultimately leave the country.
How Canadian Duty Drawback Works
The core principle mirrors drawback programs elsewhere: you paid duty on an import, that merchandise (or a product made from it) was later exported, so the government refunds the duty. To claim it, you need to document the link between the imported goods and the corresponding export.
Canadian drawback generally applies in situations such as:
- Goods exported in the same condition as they were imported
- Imported materials used to manufacture goods that are then exported
- Goods that are surplus, obsolete, or destroyed under certain conditions
Who Can Claim Canadian Duty Drawback?
Eligibility can extend to importers, exporters, manufacturers, and in some cases other parties in the supply chain who have the right documentation and waivers. You may be a candidate if your company imports goods into Canada and then exports them, or uses imported inputs to produce goods for export markets.
As with most drawback programs, claims are generally subject to time limits from the date of import or export, so it's worth reviewing eligibility sooner rather than later to avoid leaving recoverable duties on the table.
Canadian vs. U.S. Duty Drawback
The underlying idea is the same on both sides of the border — recover duties on goods that are exported — but the programs are administered separately, by CBSA in Canada and CBP in the United States, each with its own rules, forms, timelines, and documentation requirements. Companies that import and export across both countries may have recovery opportunities under both programs, handled separately.
How to Claim Canadian Duty Drawback
Drawback claims in Canada require detailed records connecting imports to exports, along with the appropriate forms and, in some cases, waivers from other parties in the transaction chain. Because the rules and documentation are involved, most companies work with an experienced drawback specialist who manages the process and maximizes the recovery — often on a contingency basis, so you only pay when you recover.
Find Out What You Could Recover
Whether you import into Canada, the U.S., or both, duty drawback is one of the most effective ways to recover money you've already paid. The first step is simply finding out whether you qualify.
See if you qualify and get a free assessment →
This article is general educational information, not customs or legal advice. Eligibility and claims are handled by licensed specialists. Rules referenced are subject to change — confirm current requirements with a specialist.