Drawback is the oldest refund mechanism in Canadian customs: duties and surtaxes you paid at the border come back when the goods and circumstances qualify under CBSA's duties relief and drawback programs. The claim is made on Form K32, which is why practitioners just say "a K32".

What drawback is for

The duties relief and drawback programs exist so that import charges do not stick to goods in circumstances where Parliament decided they should not, classically where imported goods are subsequently exported, either as they arrived or after being used in manufacturing. Duties relief lets qualifying importers avoid paying up front; drawback refunds importers who already paid. Same conditions, different timing: with drawback, you paid first and claim the money back.

Why it matters for surtax

For importers caught by the 25% surtaxes on steel, aluminum, and steel derivative goods, drawback is one of the four recovery routes, alongside remission orders, entry adjustments, and Finance remission applications. Our comparison page explains which route fits which situation. Where your goods move through Canada in ways the program recognizes, a K32 claim can return surtax that no remission order touches.

The timeline, and the interest clause

CBSA publishes a service standard for drawback claims: 90 days from receipt of a complete claim. Two details deserve attention:

  • Complete is doing real work in that sentence. A claim missing documentation does not start the clock. Preparing a K32 properly the first time is most of the battle.
  • When CBSA exceeds the standard, it pays interest on the amount owed. The government holds itself to the deadline with its own money, which tells you the deadline is real.

The two-year ceiling still applies

Like every surtax recovery route, drawback claims are subject to the rule that refund claims must be made within two years of each importation. A qualifying entry that goes unclaimed past its second anniversary is gone, regardless of how strong the claim would have been. With the first surtax entries dating from March 2025, the earliest expiries land in early 2027.

Whether your goods qualify for drawback is determined by the program conditions applied to your actual entries and movements. Filings on our engagements are prepared and transmitted by licensed customs brokers.

Common questions

How long does a K32 drawback claim take?

CBSA's published service standard is 90 days from a complete claim. When CBSA exceeds it, interest is payable on the amount owed.

Where does the drawback refund go?

Like other surtax refunds, it posts as a credit or payment on your CBSA account and is applied first against any balance you owe CBSA.