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Home » Knowledge Base » Importing into Canada » How do I apply for duty drawback to get a refund on my duties?

How do I apply for duty drawback to get a refund on my duties?

Overview of Duty Drawback:

The object of duty drawback is to allow the U.S. exporter to better compete in the world market. It lowers the exporters material cost by removing the Customs duty from the transaction. Upon importation of goods, a company pays duties due to U.S. Customs based on the product being imported. If the goods are subsequently exported or destroyed, these duties may become eligible for drawback. Duty is limited to 99% of the duties paid on the imported merchandise designated for drawback.

Duty Drawback Process:

Scenario 1 – When A & A Contract Customs Brokers is the U.S. customs broker AND Canadian customs broker:

A & A Contract Customs Brokerage will clear the shipment into the U.S. and flag all potential Duty Drawback entries eligible for Drawback.

Once shipment has been flagged destined to Canada, the Importer is required to alert A & A of which port of entry shipment will be clearing into Canada. We are required to coordinate with U.S. Customs to get the CF7553 Drawback Entry (Intent to Export) signed off by U.S. Customs prior to entering into Canada.

Once CF7553 is signed off by U.S. Customs. A & A will clear the shipment(s) into Canada and will provide Canada Customs Coding Form, Canadian Customs B3, commercial invoice and Canadian destined Bill of Lading reflecting proof of entry into Canada.

Scenario 2 – When A & A Contract Customs Brokers is the U.S. customs broker AND Canadian customs broker:

If A & A is not the Broker at time of original import into the U.S. the Importer must provide A & A the U.S. Broker contact information so we can retrieve the original entry documents into the U.S.

Once shipment has been flagged destined to Canada, the Importer is required to alert A & A of which port of entry shipment will be clearing into Canada. We are required to coordinate with U.S. Customs to get the CF7553 Drawback Entry (Intent to Export) signed off by U.S. Customs prior to entering into Canada.

Once CF7553 is signed off by U.S. Customs. A & A will clear the shipment(s) into Canada and will provide Canada Customs Coding Form, Canadian Customs B3, commercial invoice and Canadian destined Bill of Lading reflecting proof of entry into Canada.

We strongly recommend using 1 customs broker for your shipments into the U.S. and Canada so that there is an end to end audit trail, making the Duty Drawback process much more efficient and effective.

in Importing into Canada

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NOTE: All details pertaining to CARM R2 processes are based on the current information available at the time of writing. As this is subject to change, it’s recommended you periodically check in with the CBSA or your customs broker.