Solutions › Duty Recovery › Duty Deferral
Stop Paying Duty Up Front on Goods You'll Eventually Export
The Canada Border Services Agency's Duties Relief Program lets approved importers defer duty payment on imported goods that will eventually be exported, in the same condition or after further processing. Instead of paying duty upfront and reclaiming it through drawback months later, you pay only when (and if) the goods stay in Canada.
Why This Matters: Cash Flow
Duty drawback recovers money that's already left your business, but you may wait twelve to eighteen months to get it back. Duties Relief works in the other direction: you don't pay the duty in the first place. The cash never leaves your bank account. For importers with significant export volumes, the working-capital impact can be material.
How the Program Works
Participation in the Duties Relief Program requires CBSA approval. Once approved, you import goods without paying the duty at the border and file a monthly 'Customs Duties Owed' report to the government covering any goods that ended up being sold domestically rather than exported.
The application process can be administratively heavy. To minimize the time required to obtain approval and start realizing the cash-flow benefit, our program follows this approach:
Internal systems gap analysis - confirming that your record-keeping meets CBSA's program requirements.
Mock CBSA assessment test - running the program on a sample of recent shipments before you submit the formal application.
Application preparation and submission to CBSA.
On-site validation support during CBSA's program audit.
Post-approval monthly reporting verification, making sure your ongoing reports satisfy CBSA's requirements.
Internal systems gap analysis - confirming that your record-keeping meets CBSA's program requirements.
Mock CBSA assessment test - running the program on a sample of recent shipments before you submit the formal application.
Application preparation and submission to CBSA.
On-site validation support during CBSA's program audit.
Post-approval monthly reporting verification, making sure your ongoing reports satisfy CBSA's requirements.
The Dominion Customs Solutions Approach
We've helped many companies successfully integrate the Duties Relief Program into their operations. We can build your program from the ground up, support a specific portion of the application process, or file your monthly diversion reports to CBSA on your behalf after you're approved. You decide how to leverage our team.
The initial consultation is complimentary and carries no obligation. We'll review your situation, share what we've learned from previous Duties Relief implementations, and discuss next steps.
Frequently Asked Questions
Approval timelines vary based on CBSA workload and the completeness of the application, but a comprehensive application typically moves significantly faster than ones that require back-and-forth with CBSA.
CBSA requires monthly reporting on goods that were diverted to domestic sale (and therefore owe duty), along with documentation supporting the eligibility of goods that were exported. The reporting is structured but ongoing. We can either train your team to manage it or run it for you.
If you have predictable export volumes and the cash-flow benefit matters, Duties Relief is generally preferred. If your export pattern is irregular or you'd rather pay duty and recover it later, Drawback is simpler operationally. Many of our clients use both for different product lines. We can model the choice for your specific situation during the initial consultation.