Duty Deferral Program - Duty Drawback - Exported Motor Vehicles

A drawback is a refund of the duties paid on imported goods. Under specific circumstances, you can temporarily use a motor vehicle in Canada before you export it without affecting your eligibility for a drawback. 

Eligibility Criteria

A drawback may only be claimed by:

• the importer of the motor vehicle or the person who sold the motor vehicle to the purchaser, in the case of an imported motor vehicle; or
• the manufacturer or producer of the motor vehicle, in the case of a motor vehicle manufactured or produced in Canada.

Canadian residents must export the vehicle within 30 days after purchasing it. Non-residents have 12 months to export the vehicle.

Summary

Imported vehicles

The purchaser can arrange with the importer or dealer to file a drawback claim and either reimburse him, or reduce the purchase price by the drawback amount.

Canadian-manufactured vehicles

The purchaser can arrange with the manufacturer to file a drawback claim and either reimburse him, or reduce the purchase price by the drawback amount.

Filing a drawback claim

If the dealer, importer, or manufacturer sells a vehicle for export, they have to complete form K32 or K32-1, Drawback Claim and return it to the nearest CBSA Customs Client Services office. The applicant has to support his claim with information from the purchaser confirming that the vehicle has in fact been exported.

A drawback can only be claimed after the vehicle has been exported.

Time limit

Claims must be filed within four years from the date the vehicle was imported.

For more information, please visit the Web site or contact the CBSA.

Manitoba Contact(s):
See National Contact.

National Contact(s):
Border Information Service - BIS
Canada Border Services Agency
Telephone: 204-983-3500 or 506-636-5064 (for calls outside Canada)
Toll-free (information): 1-800-461-9999 (for calls within Canada)
Web site: http://www.cbsa.gc.ca/menu-eng.html