The basics
What is the duty drawback program?
Canada's duty drawback program, administered by the Canada Border Services Agency (CBSA), lets businesses recover customs duties paid on imported goods that are later exported. The goods can leave Canada in the same condition they arrived, or after being processed, assembled, or repackaged here.
Even goods that become obsolete or surplus and are destroyed under CBSA supervision can qualify. Claims are filed on CBSA Form K32, and the refund flows to whichever party in the import-and-export chain is entitled to it.
Timing & eligibility
Who qualifies — and how far back can you claim?
If you imported goods into Canada, paid duty, and those goods (or goods made from them) later left the country, you're likely eligible — whether you're the importer, the exporter, or the processor in between.
The catch is the deadline: a claim must generally be filed within four years of the date CBSA released the imported goods. Miss it and the duty is gone. The upside — a first-time claim can reach back across several years of imports at once, which is why an initial filing is often the largest.
Exporting to the U.S.
The CUSMA "lesser duty" rule
If you export to the United States or Mexico, CUSMA (formerly NAFTA) adds a wrinkle. For goods that are manufactured or transformed in Canada before export, drawback can be limited to the lesser of the duty paid in Canada or the duty paid entering the other country.
But there's a key exemption: goods exported in the same condition as imported — common for DTC brands re-shipping finished inventory to U.S. customers — are generally not subject to that limit and can qualify for full recovery. Knowing which bucket your goods fall into is what protects the size of your claim.
Documentation
What CBSA needs to see
A drawback claim lives or dies on traceability. CBSA needs a clean line from the duty you paid at import to the specific goods that left the country: the import accounting declaration (B3 / CAD), commercial invoices showing duty paid, and proof of export.
Where most claims stall is matching exports back to the right imports as inventory turns over. We build that linkage line by line using first-in, first-out (FIFO) attribution, so every dollar claimed is backed by a document CBSA can follow.
This is general information about the CBSA duty drawback program, not legal or customs advice. Eligibility and recovery amounts depend on your specific records, which we confirm in a free review.