Are you overpaying on your import overhead? If your business imports commercial goods into Canada that are later exported, you could be missing out on substantial capital recovery.

Through the Canada Border Services Agency (CBSA) Duty Drawback Program, Canadian businesses can recoup up to 100% of the customs duties previously paid on imported cargo. At S.M. Hewitt (Sarnia) Limited, we handle the complex audit trails and administrative filings required to claim your refunds and put that capital back into your bottom line.

How Do I Qualify for a Duty Drawback?

You don't need to navigate the regulatory framework alone. To qualify for a customs duty refund from the CBSA, your commercial freight must meet at least one of the following three criteria:

• Exported As-Is (Same Condition): Goods that are imported into Canada and subsequently exported to a foreign market without being altered or further processed.  
• Further Processing & Manufacturing: Imported raw materials, components, or parts that are integrated into a finished product manufactured in Canada, which is then exported.  
• Obsolete or Surplus Goods: Imported merchandise or materials that become surplus or obsolete and are subsequently destroyed under official CBSA supervision.

Navigating CUSMA Restrictions

If you are exporting finished products from Canada into the United States or Mexico, specific limitations apply under the Canada-United States-Mexico Agreement (CUSMA).  

Under these regulations, the drawback on non-originating raw materials is generally calculated using the "lesser of the two duties" rule. Our team of Certified Customs Specialists (CCS) carefully calculates these specific duty differentials to maximize your legal recovery while ensuring total border compliance.  

Our Streamlined Drawback Filing Process

Filing a drawback claim requires meticulous data matching. Unlike a standard customs entry, we can bundle multiple imports and exports into periodic, structured filings to keep your administrative costs low and maximize your financial returns.  

1. Data Collection & Documentation

We gather your historical import documentation (Form B3/CADEX), proof of duty payments, and corresponding foreign bills of lading or consumption entries that legally prove the goods exited Canada.

2. Audit & Classification Matching

Our expert raters meticulously link your original import records to your exact export files. We verify tariff classifications, valuation metrics, and origin declarations to build an ironclad audit trail.

3. Official K32 Claim Submission

We complete and submit the formal Form K32 Drawback Claim directly to the regional CBSA authority on your behalf, managing any intermediary requests or administrative processing inquiries until your refund check is cleared.

Don't Leave Your Capital Behind: The 4-Year Limit

Important Regulatory Timeline: The CBSA enforces a strict time limit on asset recovery. A claim for a duty drawback must be fully executed and filed within four years from the original customs release date of the imported goods.  

If you haven’t audited your import and export entries over the last few years, you may be sitting on unclaimed capital that is set to expire.

Contact our family-owned team at our Sarnia office near the Bluewater Bridge today. Call (519) 332-4411 or request a consultation to launch a retroactive duty recovery audit for your business.

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