Ready to reduce duty costs and uncover hidden savings? Connect with DMA’s tax experts to assess your opportunities today.
Many companies operating in Canada overlook the opportunities available through the Canada Border Services Agency (CBSA) to reduce duty costs and improve cash flow. The CBSA offers several duty optimization programs that allow businesses to defer or recover duties and tariffs—particularly in cases where goods are re-exported or further processed abroad.
DMA helps companies identify, enroll in, and effectively leverage these programs to strengthen trade compliance and avoid unnecessary costs.
Duty Deferral & Re-Export Programs
CBSA offers duty deferral programs for businesses that import goods into Canada but intend to re-export them. These programs can provide significant cash flow benefits by eliminating the need to pay duties and counter-tariffs up front.
If your supply chain includes manufacturing steps in Canada with additional processing abroad, certain CBSA programs allow you to pay duties and taxes only on the value added outside the country—helping you avoid unnecessary costs when goods return to Canada.
Drawback Opportunities
Even if you’re not currently enrolled in a deferral program, you may still be eligible to recover duties and tariffs on previously exported goods. The CBSA drawback program allows for recovery if the goods are exported in the same condition within four years of import. There are some limitations when it comes to goods used in manufacturing, but our team can review your situation to identify potential recovery opportunities.
Tariff Classification & Valuation Reviews
Accurate tariff classification and proper valuation are critical to avoiding overpayment and minimizing audit risk:
- Tariff Classification Reviews ensure that the correct duty rates are applied, reducing the risk of retroactive assessments and penalties from CBSA.
- Valuation Reviews focus on the declared import value. If you’re including amounts that could be deducted—such as freight or non-dutiable charges—you may be paying more duty than required.
DMA’s specialists can assess your current classification and valuation practices to help you stay compliant while optimizing your duty spend.
Strategic Sourcing & Trade Agreements
As supply chains shift, it’s critical to evaluate whether your sourcing strategies align with Canada’s network of free trade agreements. Diversifying suppliers in countries with favorable trade agreements can reduce or eliminate duty exposure altogether. DMA can assist your procurement and trade compliance teams in evaluating duty implications as part of your supplier selection process.
Get More Out of Your Imports
Let DMA help you leverage CBSA programs, recover overpaid duties, and reduce import-related risk. Whether you’re looking to assess eligibility, improve classification practices, or refine sourcing strategies, our customs and trade specialists are here to help.
Navigate Canada Sales Tax with DMA
| This website content should be used for general informational purposes only, and not as a substitute for consultation with professional tax, legal, or other competent advisors. Before making any decision or taking any action based upon information contained on this website, you should consult with a DMA professional. |