How to claim a refund of duties after importing

Sometimes you may be eligible for a refund of duties paid at the time of import, either because the goods were not in the condition expected, or because duties were assessed based on information that was later corrected. 

If you do not identify and address these situations, you may miss the opportunity to recover those duties.

To help you avoid this, we’ve put together this article to explain what a refund of duties is, cases when your imports may be eligible for one, and the time limits for claiming a refund after import.

What is a refund of duties?

A refund of duties is a mechanism that allows businesses to request a refund of customs duties paid to the Canada Border Services Agency (CBSA) on imported goods when certain conditions are met.

It is governed by the Customs Act and the Refund of Duties Regulations.

Refunds are not granted automatically and must be requested through a formal application. 

They also don’t apply to the Goods and Services Tax (GST), since GST is excluded from all refunds made under customs legislation.

Duty refunds should not be confused with duty drawback, which applies when imported goods are later exported or used in the manufacturing of goods that are exported.

It is important to note that a refund is not necessarily final.

If the CBSA later determines that all or part of a refund was granted incorrectly, you must repay the amount, in addition to any applicable interest. 

When you’re eligible for a refund of duties

You may be eligible for a duty refund when the amount paid at import is later determined not to have been payable under the Customs Act and applicable CBSA policy.

A refund of duties may be available in situations where:

• Goods have suffered damage, deterioration, or destruction
• Goods are deficient in quantity
• Goods are of inferior quality
• Goods are defective, are of inferior quality, or are not the goods ordered, and have been disposed of or exported
• Duties are paid or overpaid as a result of an error in the determination of origin, tariff classification, or value for duty
• Excess duties are paid based on a clerical, typographical, or similar error
• Duties are paid where preferential tariff treatment was not claimed at the time of accounting, but the goods actually qualify

In all cases, eligibility for a refund is subject to the conditions set out in the Refund of Duties Regulations and must be supported by appropriate documentation.

Cases when refunds are not applicable

Certain goods are not eligible for a refund, even if they are damaged or have deteriorated. These are:

• Goods that have suffered damage or deterioration due to the expiration of a manufacturer’s or producer’s recommended shelf-life or allowable storage-before-use period
• Iron or steel goods, or products made from iron or steel, that have suffered damage or deterioration due to rust

Time limits for claiming a refund of duties

Notices and requests for duty refunds must be submitted within specified periods as follows:

• For perishable or brittle goods, a written notice must be provided to the CBSA within three days after the goods are released. Following this, a refund request must be submitted within one year.
• For all other goods, both the written notice and the refund request must be made within four years from the date the goods were released.

If the required written notice and refund request are not provided within these timeframes, you will no longer be able to request a duty refund.

How Cole International can help

At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses assess whether a duty refund is available and ensure their requests meet CBSA requirements.

Our team works with importers every day to:

• Review import transactions and identify potential refund opportunities
• Assess eligibility under the Refund of Duties Regulations
• Prepare and submit refund requests with appropriate supporting documentation

We don’t believe in guesswork. We get it right the first time.

Reach out to one of our trade professionals for more information or if you need support claiming a refund of duties on your past imports.