Drawback Legislation

Drawback legislation plays a pivotal role in facilitating international trade by allowing importers a valuable opportunity to recover duties paid on imported goods. In Canada the drawback system is designed to enhance competitiveness, promote exports and support economic growth. 

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In the context of importing into Canada, drawback refers to the refund of waiver of duties and taxes that was previously paid on imported goods and subsequently exported. 

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In order to be eligible for drawback, importers must meet specific eligibility criteria. 

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Canada offers a few types of drawback. Common types include Duty Drawback, GST/HST Drawback and Manufacturing Drawback. Each program has its own set of rules and requirements. 

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• Duty Drawback: Allows for the refund of customs duties paid on imported goods that are subsequently exported 
• GST/HST Drawback: Enables the recovery of the Goods and Sales Tax (GST) and Harmonized Sales Tax (HST) paid on imported goods that are exported 
• Manufactured Drawback: Targets businesses involved in processing imported goods before exportation, providing a way to recover duties on imported components.