Open
Drawback Program
Refund of duties on imported goods exported or destroyed
Last Update: May 28, 2026
Funding available
Varies by project
Timeline
- Open continuously
Location
Canada
Overview
The Drawback Program offers Canadian businesses a refund of duties paid on imported goods that are subsequently exported or destroyed, with the possibility of a full or partial refund as determined by the Canada Border Services Agency. The program aims to enhance export competitiveness by reimbursing duties on goods re-exported in the same condition, used in manufacturing for export, or classified as obsolete or surplus; there is no maximum funding amount explicitly specified.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Access new markets
Eligible Funding
- Varies by project
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- Sole proprietorship
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Exporting imported commercial goods in their original condition.
- Manufacturing products in Canada using imported goods and exporting the finished products.
- Destroying imported goods that have become obsolete or surplus, with certified documentation.
- Exporting imported motor vehicles after purchase.
Documents Needed
- Form K32, Drawback Claim
- Supporting documentation proving eligibility
- Export sales invoice and proof of export
- Waivers or certificates when multiple claimants are involved
- Form E15 for destroyed goods, when applicable
Eligibility
Who is eligible?
- Canadian companies that import commercial goods for export
- Canadian companies that import goods to manufacture products for export
- Canadian companies dealing with obsolete or surplus imported goods that are destroyed or manufactured into other obsolete or surplus goods
Who is not eligible
- Claims cannot be filed by the purchaser of an exported motor vehicle under the motor vehicle drawback rules.
- Goods subject to CUSMA limits may be restricted in some cases.
Eligible expenses
- Duties paid on imported commercial goods that are eventually exported in the same condition.
- Duties paid on imported goods that are used in manufacturing processes and the resulting products are exported.
- Duties paid on imported goods that are destroyed because they are obsolete or surplus.
Ineligible Costs and Activities
- GST/HST cannot be refunded through drawback.
- Goods affected by CUSMA restrictions may not qualify for drawback in some cases.
Eligible geographic areas
- Businesses operating in Canada that import goods into the country.
Processing and Agreement
- CBSA reviews the claim and supporting documents after submission.
- Additional documents may be requested to establish the claim.
- The claim is processed only after required waivers are provided when more than one party can claim.
- Approved claims may receive a full or partial refund, and interest may apply on unpaid balances after 90 days.
Additional information
- Claims must be submitted through the CBSA Assessment and Revenue Management (CARM) Client Portal, with all supporting documentation included.
- If multiple parties are eligible for a claim, waivers are required from all parties before processing.
- Destruction of goods requires certified Form E15, validated by a CBSA officer or an independent qualified third party.
- If a full refund is not issued within 90 days, interest will be paid on the outstanding balance.
Frequently Asked Questions about the Drawback Program Program
Here are answers to the most common questions about the Drawback Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Drawback Program?
The Drawback Program offers Canadian businesses a refund of duties paid on imported goods that are subsequently exported or destroyed, with the possibility of a full or partial refund as determined by the Canada Border Services Agency. The program aims to enhance export competitiveness by reimbursing duties on goods re-exported in the same condition, used in manufacturing for export, or classified as obsolete or surplus; there is no maximum funding amount explicitly specified.
Who is eligible for the Drawback Program program?
To be eligible for the Drawback Program program, you must:
Import commercial goods later exported in the same condition
Import goods used to produce other goods for export
Destroy imported goods that are obsolete or surplus
What expenses are eligible under Drawback Program?
Exporting imported commercial goods in their original condition.
Manufacturing products in Canada using imported goods and exporting the finished products.
Destroying imported goods that have become obsolete or surplus, with certified documentation.
Exporting imported motor vehicles after purchase.
Who can I contact for more information about the Drawback Program?
You can contact Canada Border Services Agency (CBSA).
Where is the Drawback Program available?
The Drawback Program program is available across Canada.
Who are the financial supporters of the Drawback Program?
Drawback Program is funded by Canada Border Services Agency (CBSA)