Trade incentives programs
Drawback Program
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The CBSA Assessment and Revenue Management system (CARM) is now the official system of record for importers and other trade chain partners. If you have questions about the content on this page due to the transition to CARM, contact the CARM client helpdesk.
The Drawback Program can help Canadian companies compete in export markets by removing the domestic duty impact from their commercial goods. The program grants a drawback (refund) of duties that were paid on imported goods if:
- the goods are eventually exported in the same condition, or
- the goods are consumed or expended through a manufacturing process and eventually exported
Additionally, Canadian companies may have commercial goods that are eligible for drawbacks under the Obsolete or Surplus Goods Program. The purpose of this program is to help Canadian companies compete internationally by reducing the export costs on valueless goods that will not enter the domestic market.
More information: Memorandum D7-2-3: Obsolete or Surplus Goods
Eligibility
Apply if you:
- import commercial goods that are later exported in the same condition
- import goods to produce other goods for export
- destroyed imported goods that are obsolete or surplus, or that are manufactured into goods that are obsolete or surplus
Note: If goods are exported to the United States or Mexico, there may be restrictions under the Canada-United States-Mexico Agreement (CUSMA). More information: Memorandum D7-4-3: CUSMA Requirements for the Duty Drawback and Duties Relief Programs.
Claiming a drawback
All entities that import goods into Canada must have a valid importer BN15 program account number to submit a drawback claim. Claims can be made directly in the CBSA Assessment and Revenue Management (CARM) Client Portal. Supporting documentation establishing that the goods qualify must be attached to a claim.
When more than one person is eligible to file a drawback claim, waivers must be submitted for all claimants before the CBSA can process yours.
Destroyed goods
The destruction of the goods must be substantiated by means of a certified Form E15, Certificate of Destruction/Exportation, witnessed by a CBSA officer or by an arms-length qualified third party.
Vehicles
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.
More information, including time limits: Memorandum D7-3-2: Exported Motor Vehicles Drawback
When to file a claim
In most cases, you have to present a claim within 4 years (5 years for destroyed goods) from the time the goods enter Canada. You must export or destroy the goods before you can file a claim.
For motor vehicles, you have to present a claim within 4 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.
Refund amounts
The CBSA may give you a full or partial refund when you file your claim. For partial refunds, we will pay you any balance owing after your claim is verified.
Should you not receive a full refund within 90 days of submission, we 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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