{"id":4514,"date":"2019-07-19T16:31:06","date_gmt":"2019-07-19T20:31:06","guid":{"rendered":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/?p=4514"},"modified":"2024-07-15T04:44:29","modified_gmt":"2024-07-15T08:44:29","slug":"canada-customs-duty-refund","status":"publish","type":"post","link":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/canada-customs-duty-refund\/","title":{"rendered":"Canada Customs Duty Refund: How to Claim Duty Back on Returns"},"content":{"rendered":"

Many people have never heard of the <\/span>Canada Customs duty refund <\/span>program, or Casual Refund Program, but it could really pay off to know <\/span>how to claim duty back<\/span>. Many Canadians go over the US border for an occasional day of shopping. Even more commonly, they shop online and order products from outside of Canada. If you do too, you might be missing out on some cash from the <\/span>Canada Customs duty refund <\/span>program.<\/span><\/p>\n

By the end of 2019, Canadians are expected to have spent nearly $40 billion CAD on online purchases. About half of all purchases Canadians make online are from foreign retailers. With so many items being ordered into Canada, you can be sure there are items being returned. Maybe the pants you ordered from Paris didn\u2019t fit, or the computer monitor you ordered from China arrived with some damage. Maybe you\u2019re just having shopper\u2019s remorse. It happens. Whatever the reason, having to return a package can be annoying.\u00a0<\/span><\/p>\n

There\u2019s some good news, though. When you return an item to a foreign supplier, whether by mail or by hand, you\u2019re entitled to a refund on the duties, GST\/HST, and provincial taxes that you paid to get the item into Canada. The process can be a little confusing, but we\u2019ll break it down for you. Keep reading to find out <\/span>how to claim duty back<\/span>.<\/span><\/p>\n

What is the Casual Refund Program?<\/span><\/h2>\n

The <\/span>Casual Refund Program<\/span><\/a> is an initiative put in place by the Canada Border Services Agency (CBSA) to allow Canadians a near-complete refund when they return items purchased outside of the country. Whether you purchased an item online, by courier, or by hand, the Casual Refund Program applies to your return and allows you a<\/span> refund for duties and taxes.<\/span><\/p>\n

When you buy something in a foreign country, you usually have to pay duties. For many classifications of items from <\/span>NAFTA<\/span><\/a> countries (The United States, Mexico), duties are low or non-existent, but you still have to pay Canadian taxes if the item is imported by mail or courier. If you\u2019re bringing the item in by hand, taxes and duties may apply if your goods exceed personal limits. For more information on import duties, consult this <\/span>CBSA document<\/span><\/a>.\u00a0<\/span><\/p>\n

When does Canada customs duty refund apply?<\/span><\/h2>\n
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    1. It is only for non-commercial purchases.<\/b> This means the item must be for personal (or casual) use and not for resale of any kind. The program is not intended for the <\/span>refund of duties and taxes on commercial importations.<\/span><\/li>\n
    2. The item must be returned to the retailer. <\/b>You must provide proof that the item is no longer in Canada. There are some exceptions. In the case of goods damaged in the factory, a shortage in goods, overpayment, or inferior quality, the retailer may not require that the item be returned. You will still need proof of a credit or refund from the company, however. In Appendix A of the <\/span>CBSA Casual Refund Program Guidelines<\/span><\/a>, these situations and others are explained in more detail.\u00a0<\/span><\/li>\n
    3. The item had duties and taxes placed on it. <\/b>You must prove the amount of duties paid. Duties and taxes totalling less than $2.00 CAD will not be refunded.<\/span><\/li>\n
    4. Brokerage fees and special services will not be refunded by the CBSA. <\/b>Prices for customs clearance services vary by company and they are not part of the <\/span>Canada Customs duty refund <\/span>program. Express, expedited and optional international services are not included either.<\/span><\/li>\n
    5. The <\/b>Canada Customs duty refund<\/b> request must be made within one year of the purchase. <\/b>In some of the exceptional cases mentioned above, this is extended to four years.\u00a0<\/span><\/b><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

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       <\/p>\n

      Let\u2019s use apparel, the most common online purchase, as an example. A 100$ dress ordered by mail from the U.S. won\u2019t have any duty on it, as per <\/span>NAFTA<\/span><\/a>. You will still pay about $13 in GST, HST, or PST if the item comes by mail. A similar dress ordered from outside of North America, let\u2019s say Japan, might have an additional $20 duty. In total, you\u2019ll pay $133 CAD.\u00a0<\/span><\/p>\n

      Note:<\/b> It\u2019s important to understand that duty rates are entirely dependant on the type of item and the country it comes from. A dress from Japan and a dress from Thailand could have different duty rates. Likewise, a cellphone from Japan would have a different duty rate than a dress.\u00a0<\/span><\/p>\n

      After you\u2019ve received the dress, you decide to return it. You ship it back (possibly at your own expense, depending on the policy of the retailer) and the retailer refunds you 100$. In order to get the remaining $33, your <\/span>duty refund<\/span>, you need to apply for the Casual Refund Program.<\/span><\/p>\n

      Many people write off the duty and taxes as a loss, thinking it would be too complicated to try and get a <\/span>duty refund<\/span>. But if you know how to use the program, you\u2019ll be aware of which documents to keep when you receive your package and you\u2019ll be ready to contact the appropriate agencies.<\/span><\/p>\n

      How to get a <\/span>Canada Customs duty refund<\/span>\u00a0<\/span><\/h2>\n

      You will need to attach one of the three following documents to the B2G form, depending on your importation method:<\/p>\n

      Hand Carried Goods: <\/b>When you enter Canada with dutiable items, you will receive a form called the <\/span>Casual Goods Accounting Document<\/span>, or <\/span>BSF715<\/span>.\u00a0<\/span><\/p>\n

      Mailed Goods:\u00a0<\/b>There will be an <\/span>E14 Form<\/span> attached to your package. All duties and taxes you paid will be recorded here.\u00a0<\/span><\/p>\n

      Couriered Goods:\u00a0<\/b>If your item arrives via courier company, such as UPS or Fedex, you will be provided with a receipt that has a <\/span>CBSA B3 transaction number<\/span> on it.\u00a0<\/span><\/p>\n

      Always keep these documents. Hold on to them at least until you\u2019re sure you won\u2019t be returning the goods. There\u2019s nothing more frustrating than realizing you tossed something important, only to need it later. You\u2019ll also need to contact the retailer for proof that they received the returned item. This can be a simple credit note or shipping receipt. You\u2019ll need to attach this to the <\/span>CBSA refund form<\/span> as well.<\/span><\/p>\n

      Once your B2G and supporting documents are prepared, send them by mail to the nearest CBSA Casual Refund Centre. The centre corresponding to your address can be found on the <\/span>CBSA website<\/span><\/a>. If you send it to the wrong centre the <\/span>CBSA refund form<\/span> will be redirected, causing unnecessary delay. Once the correct centre has reviewed and accepted your application, you will be sent a cheque for the duties and taxes you paid within 91 days.\u00a0<\/span><\/p>\n

      Some people might not want to go through all the effort to get a small <\/span>duty refund<\/span>. But consider that if you\u2019re regularly making online returns, or returning large value items, you could actually be entitled to a good chunk of money! If this process still seems confusing, we\u2019re here to help. We can handle the Casual Refund Program process or walk you through it so you can do it yourself. We have an expert team of brokers who are ready to help you with all of your import and export needs.<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Many people have never heard of the Canada Customs duty refund program, or Casual Refund Program, but it could really pay off to know how to claim duty back. Many Canadians go over the US border for an occasional day of shopping. Even more commonly, they shop online and order products from outside of Canada. […]<\/p>\n","protected":false},"author":9,"featured_media":4515,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[9,250],"tags":[],"_links":{"self":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4514"}],"collection":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/comments?post=4514"}],"version-history":[{"count":3,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4514\/revisions"}],"predecessor-version":[{"id":5609,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/posts\/4514\/revisions\/5609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media\/4515"}],"wp:attachment":[{"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/media?parent=4514"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/categories?post=4514"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clearit.ca\/canadian-customs-broker-blog\/wp-json\/wp\/v2\/tags?post=4514"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

      If you want to use the Casual Refund Program, the first thing you\u2019ll need is a B2G (CBSA Informal Adjustment Request) form. Go to the <\/span>CBSA website<\/span><\/a> to find a link to the <\/span>Customs refund form<\/span> in PDF format and instructions on filling it out.\u00a0<\/span><\/p>\n