As a component of your Customs Duty Recovery program, Duty Drawback offers additional Customs duty refund opportunities.
The Canadian Duty Drawback Context
In Canada, Duty Drawback is one of three Duty Deferral programs. In the broader context of Customs Duty Recovery, these programs refund, defer or relieve the payment of duties on imported goods.
The Canadian Duty Drawback program aims to improve the competitiveness of domestic businesses by offering relief from the payment of most duties and taxes on imported goods that are ultimately exported, or deemed exported, whether or not the goods are further manufactured in the country.
In effect, duty deferral offers Canadian businesses many of the same duty and tax incentives as free trade zones. For example, you do not have to pay duties and taxes on imported goods that you plan to export, even if these goods undergo a wide range of processing and manufacturing activities while in your possession. You can also import goods and store goods tax- and duty-free until they are released into the Canadian market. Finally, if you have already paid duties and taxes on imported goods, the Drawback Program can be used to claim a duty refund. Like other Duty recovery opportunities, claims are possible on goods imported within the last four years.
Used in conjunction with other Canadian Duty Recovery opportunities, our consultants can utilize the duty drawback program to round out your Customs duty optimization.
The United States Duty Drawback Context
Like its Canadian counterpart, the U.S. Duty Drawback program aims to improve the competitiveness of domestic businesses by offering relief from the payment of most duties and taxes on imported goods that are ultimately exported, or deemed exported. Similarly, various categories of circumstances prevail: manufacturing, unused and rejected merchandise.
While the Canadian Duty Drawback program allows for recovery of 100% of all Customs duties paid—including countervailing and anti-dumping duties over the previous four years—the U.S. Duty Drawback program enables recovery of 99% of Customs duties paid on goods imported over the previous three years.
Similarly, when used in conjunction with other U.S. Duty Recovery opportunities, duty drawback rounds out the optimization of your Customs duty liabilities.
Within the larger context of Customs Duty Recovery, we offer Duty Drawback services that help you maximize your potential returns and streamline your recovery processes:
- Duty drawback consulting
- Multiple party drawbacks
- Establishing entitlements and obtaining Customs approvals
- Enhancing duty drawback operational processes including systems and data analyses
- Claim preparation and filing
- Compliance reviews and drawback audits
Our team of qualified and experience customs duty experts can ensure you get the highest duty refunds available.