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Canadian Duty Drawback · Recovery & Filing

You already paid the duty.
We get it back.

Klarhaus recovers refundable customs duties, tariffs and surtaxes for Canadian importers — up to four years back. We handle the entire claim, end to end, and our fee comes only out of what you recover.

No retainers No hourly fees No recovery, no fee

Drawback claim — summaryForm K32
Import duties & surtaxes paid — 48 mo$412,806
Goods sold & consumed in Canada− $186,240
Duties eligible for drawback$226,566
Refund — Receiver General for Canada$226,566
Illustrative example — figures for demonstration only
9+
Years in Canadian drawback — nothing else
4 yrs
Retroactive claim window under CBSA rules
100%
Of our fee comes out of your recovery
$0
Retainers, hourly billing or upfront cost
The program Customs Tariff s.113 · CBSA Memorandum D7-4-2

What duty drawback is

Most importers overpay the border. Few ever collect.

Duty drawback is a long-standing CBSA program: when goods you imported duty-paid later leave Canada — or are destroyed — the duties, and in many cases the surtaxes, you paid at the border can be claimed back. Claims reach back four years, and the refund arrives as a payment from the Receiver General for Canada.

Stream 01 — Same condition

Exported as imported

Goods that leave Canada in the condition they arrived: orders shipped to U.S. customers, stock transferred to a foreign warehouse, returns sent back to the vendor.

Common in e-commerce, distribution and cross-border retail.

Stream 02 — Further manufactured

Used to make what you export

Imported materials, parts and components consumed in producing goods you then ship abroad — the duty on those inputs is recoverable.

Common in food processing, apparel, machinery and fabrication.

Stream 03 — Destroyed or obsolete

Written off, not written down

Obsolete or surplus stock destroyed rather than sold can qualify for a refund of the duties paid on it — turning a write-off into cash back.

Common with expired, damaged or end-of-life inventory.

The 2025–26 tariff environment has raised the stakes. Surtaxes paid on affected goods that later left Canada may be recoverable through drawback and related refund mechanisms — often at rates several times a normal duty. If you've paid surtaxes, screening those entries is the first thing we do.
The obstacle Form K32 · B3/CAD entries · Proof of export

Why it goes unclaimed

If drawback is your money, why does almost nobody claim it?

Because the government doesn't send it back on its own — you have to prove every dollar. Most companies look at what that takes, and quietly walk away.

Obstacle 01

The paperwork gauntlet

A claim reconciles your import accounting documents (B3/CAD), commercial invoices and proof of export — line by line, often across multiple brokers, carriers and years of records. One shipment can mean a dozen documents.

Obstacle 02

Zero tolerance for error

CBSA verifies claims against the paper. A mismatched value, date or tariff classification doesn't get a shrug — it gets the claim questioned, delayed or rejected. Everything has to be right, everywhere, or the refund stalls.

Obstacle 03

It's nobody's day job

Your broker's mandate largely ends when goods are released. Your finance team is running the business. Refunds sit in a gap between departments — money with no owner is money that gets abandoned.

Obstacle 04

A maze of rules

Three eligibility streams, special limits on certain exports to CUSMA countries, four-year deadlines, classification questions, evolving surtax provisions. Knowing what applies to your goods is half the work.

A drawback claim must reconcile to the dollar, the date and the document. That isn't a side project — it's a discipline.

The math Illustrative — the assessment gives you a real number

A twenty-second estimate

What's sitting at CBSA with your name on it?

Recoverable per year — estimate
$30,000
Potential first claim — four-year lookback
$120,000

Illustrative only. Actual recovery depends on your entries, classifications and export documentation.

The process Assessment → Assembly → Filing → Refund

How an engagement runs

You forward what you have. We do everything else.

STEP 01

Assessment

Share your import profile through the form or a fifteen-minute call. Within one business day you get a written eligibility read: your streams, a rough recovery range, and a plain verdict on whether a claim is worth pursuing.

Cost: $0 · No obligation
STEP 02

Assembly

We collect and reconcile the record: entry data, commercial invoices, proof of export. We coordinate directly with your broker and carriers. Our goal is under an hour of your team's time, start to finish.

Documents: we collect them
STEP 03

Filing

The claim is built to CBSA's verification standard and filed on Form K32. If CBSA has questions, they come to us — we answer every query and see the file through to decision.

Form K32 · Filed by us
STEP 04

Refund

The Receiver General pays you directly. Our fee is invoiced only from what's recovered — then, if you like, we put filings on a quarterly or annual cycle so the refunds keep coming.

Our fee: from recovery only
The firm Burnaby, BC · Serving importers in every province

Why Klarhaus

Boutique on purpose. Senior on every file.

Klarhaus does one thing: Canadian duty drawback. Nine years of it — assembling, filing and defending claims through every kind of entry, industry and CBSA query.

Because we're a specialist practice, your file is never handed down. The person who scopes your claim is the person who builds it, files it and answers CBSA on it. No juniors learning on your refund, no call centre in the middle.

And nothing about your existing setup changes: your broker keeps clearing your goods. We work alongside them — we're the recovery side of the equation, not a replacement.

klar — German: clear. It's the name and the filing standard. Entries that reconcile; claims that clear.

One discipline, not a department

Drawback is the entire practice — not a sideline of brokerage or freight. Depth beats breadth when a refund hangs on the details.

Built around your broker, not against them

We request records, reconcile data and file claims without disrupting the people who move your goods.

Confidential by default

Import records are commercially sensitive. Files are handled discreetly, and we'll sign your NDA before seeing a single document.

What we take off your plate

  • Eligibility screening across all drawback streams
  • Tariff classification review of your import entries
  • Data collection from brokers, carriers and your systems
  • Claim preparation and Form K32 filing
  • CBSA correspondence, verification and query responses
  • Ongoing quarterly or annual drawback programs
The fee Contingency · No recovery, no fee

Pricing

One fee. It comes out of the refund.

Our fee is a percentage of what we actually recover, agreed in writing before any work begins. It's deducted from the refund — never from your operating cash. If the recovery is zero, the invoice is zero.

  • No retainers or monthly minimums
  • No hourly billing
  • No filing or disbursement charges
  • No fee of any kind on unrecovered claims

You keep the majority of every dollar recovered. Our fee comes from the rest.

Fee basis — percentage of recovered duties, fixed in writing upfront If we recover $0 — you pay $0 Invoiced — only after the Receiver General pays you
Who qualifies Import + export, return or destroy

If duty-paid goods ever leave Canada again, you're a candidate.

Apparel & footwear E-commerce & retail Food & beverage Consumer goods & distribution Automotive & parts Industrial equipment & machinery Electronics Chemicals & plastics Building materials Medical & pharmaceutical Aerospace & marine + any importer whose goods leave Canada
Questions Answered plainly

FAQ

The questions importers ask first

Do we actually qualify?

If you import duty-paid goods and any portion is later exported, returned to a foreign supplier, shipped to customers abroad or destroyed as obsolete stock — very likely, yes. Certain manufactured goods exported to CUSMA countries carry special limits, which we screen for in the assessment. If you're not sure, that's exactly what the free assessment is for.

How much could we recover?

Broadly: your annual dutiable imports × your average duty rate × the share of goods that leave Canada. Because claims reach back four years, a first claim is often the largest cheque — it captures everything you didn't file. The assessment turns that arithmetic into a real figure based on your actual entries.

What will you need from us?

Access to your import records (entry documents, commercial invoices) and evidence of export — bills of lading, export declarations, carrier records. In practice, we collect most of it directly from your broker and carriers with your authorization. Our goal is under an hour of your team's time on the entire engagement.

How long until we see money?

Assembling a claim typically takes a few weeks, depending on how quickly records come in. CBSA's review time varies with the size and complexity of the claim — straightforward files move faster; multi-year recoveries take longer. We give you a realistic timeline after the assessment, not a promise built for a brochure.

What does it cost?

A success fee only: a fixed percentage of the recovered amount, agreed in writing before we start, deducted from the refund. No retainers, no hourly billing, no filing charges. If we recover nothing, you owe nothing.

Do we have to change customs brokers?

No. Your broker keeps doing exactly what they do — clearing your goods. Klarhaus handles the recovery side, and we coordinate with your broker for records rather than around them. Brokers generally welcome it: it's work outside their mandate that makes their client money.

Will filing a claim invite CBSA scrutiny?

Drawback is a standard, decades-old CBSA program — claiming it is using the rules as written. Claims are routinely verified against documentation, which is precisely why ours are built to verification standard before they're filed. If CBSA has questions, they come to us and we answer them.

What about the recent surtaxes on U.S. goods?

Where surtax-paid goods later left Canada, those amounts may be recoverable through drawback and related refund mechanisms — and because surtax rates run far above normal duty, the dollars involved are often the largest on the file. The provisions have evolved quickly; we screen every surtax entry as part of the assessment.

Next step

Find out what CBSA owes you.

Fifteen minutes gets you a written eligibility read — your streams, a rough recovery range, surtax exposure flagged. If a claim isn't worth pursuing, the read says that too. Plainly, and at no cost.

15 minutes No obligation No recovery, no fee