Machined metal parts in a foam-lined case, the kind of imported component whose duty can be refunded when the finished goods are exported

Four Ways Duty Can Come Back

Refunds: duty overpaid because of an error, damage, a shortage or a missed trade agreement claim
Duty drawback: duty refunded after the imported goods are exported, used to make exported goods, or destroyed
Duties relief: duty not charged at import, under licence, for goods that will be exported
Remission: duty cancelled under a government order for specific goods or uses

Each has its own conditions, forms and time limits, and the importer must be able to prove its claim with records.

Refunds for Errors and Overpayments

Under section 74 of the Customs Act, an importer can claim a refund of duties paid on goods that were:

Damaged, deteriorated or destroyed before release
Short-shipped, in whole packages or contents
Of inferior quality to what duty was paid on
Declared with a clerical, typographical or similar error
Declared with the wrong origin, tariff classification or value for duty
Eligible for a free trade agreement rate that wasn't claimed
Diverted to a use or user covered by another tariff item
Covered by a retroactive order reducing or removing the duty

Refund claims generally have to be made within four years of the date the goods were accounted for, through an adjustment request. Missed CUSMA claims are covered in our CUSMA guide.

Corrections run both ways. When an error means more duty is owed, the importer must correct it within 90 days of having reason to believe the declaration was wrong. See How to Avoid Customs Penalties in Canada.

The Duty Drawback Program

Drawback refunds duties already paid on imported goods. A business may qualify when the imported goods are:

Exported as they are, without being used in Canada
Processed in Canada and then exported
Used to produce other goods that are exported
Displayed or demonstrated in Canada and then exported
Obsolete or surplus and destroyed, or made into goods that are destroyed

What drawback refunds, and what it doesn't

Drawback covers customs duties, anti-dumping and countervailing duties and certain excise taxes. It does not refund GST/HST; registered businesses recover import GST through input tax credits instead (see Understanding Duties, Taxes & GST in Canada).

Who can claim and when

The importer, exporter, processor, owner or producer of the goods can claim. When more than one party is eligible, the claimant needs waivers from the others. Claims are filed on Form K32 with documents proving the conditions were met, generally within four years of the goods' release; longer limits apply to destroyed goods and some other cases. CBSA can refund all or part of the duty, and pays interest on amounts not paid within 90 days.

The Duties Relief Program

Duties relief works before the money is paid. A business licensed under the program doesn't pay duty at import on goods it will process, display or use to produce goods for export, or export without other use in Canada.

The business applies on Form K90 and must be approved by CBSA, which may visit its premises to check its control records. Its records must be good enough for CBSA to audit, and the imported goods must be exported within four years. Like drawback, duties relief covers customs duties, anti-dumping and countervailing duties and some excise taxes, not GST/HST.

In general, duties relief fits regular, predictable import-and-export cycles, while drawback fits businesses that only know after import whether goods will be exported.

Exports to the U.S. and Mexico

When the goods, or the goods made from them, are exported to the United States or Mexico, CUSMA can limit how much drawback or relief is available. CBSA explains the rules in Memorandum D7-4-3. Check these before counting on a refund for North American exports.

Remission Orders and Surtax Relief

A remission order cancels duties, or refunds them, for specific goods, importers or uses. CBSA's Memorandum D8-4-1 explains how they work. The best-known current example is surtax remission.

The United States Surtax Remission Order (2025)

This order can remit the surtax on U.S. goods in set situations, including:

Goods used in Canada to manufacture or process other goods, including food and beverage packaging
Goods for medically necessary health care, and for public health, safety and national security bodies
Specific goods listed in the order's schedules, including some motor vehicles

Remission is claimed on the declaration with the special authority code for the category, or afterwards through a correction or adjustment, within two years after the date of importation. Codes and conditions are in CBSA Customs Notice 25-19.

Surtax rules and remission change often. Check our industry news and the latest CBSA customs notices before relying on remission for new goods.

Keeping the Records That Support a Claim

Importers must keep their import records for six years. A refund, drawback or remission claim is only as strong as the records behind it:

Commercial invoices, declarations and proof of payment
Proof of export, such as export declarations and shipping documents
Production and inventory records linking imported inputs to exported goods
Certificates of destruction, where goods were destroyed
Waivers from other eligible claimants
Remission eligibility documents, such as proof of manufacturing use

How Garden City Helps

Refund, drawback and remission reviews are something Garden City Customs Services Inc. does for its existing customs brokerage clients, as part of looking after their imports. If you are a client and think duty was overpaid or could be recovered, talk to your Garden City broker.

Official Sources

This guide is general information, not legal advice. Requirements depend on your specific goods and circumstances, so please confirm details with a licensed customs broker before you ship.

Duty Drawback, Duties Relief and Refunds: Getting Customs Duties Back in Canada

The short answer