How does the K32 Claim / Duty Drawback program work?

Canada has several preferential trade agreements, particularly with Asian countries, that result in lower, or in some cases no duties vs. importing to the U.S. By importing your products into Canada, you could save thousands on import fees.

Yes, you may have to pay import fees to get your products into Canada, but you can reclaim any import duties paid for product you imported into Canada and then shipped to a U.S. customer. This is commonly referred to as a K32 and Section 321 Drawback.

That could mean thousands in lost profits added right to your bottom line overnight, and we can help.

How does K32 / Section 321 Duty Drawback work?

Example of a K32 / Duty Drawback refund

Let's say you're importing $500,000 of t-shirts from China.

Canada duty rate: 15.5% = $77,500 in duties

USA duty rate: 25% = $125,000 in duties

By importing your shirts into Canada instead of the US, you instantly save $47,500 in import tariffs.

But it doesn't end there. Let's assume you're leveraging Section 321 with 247 Fulfillment and are shipping all of your products to U.S. customers at no extra shipping cost and no loss in transit time.

Under K32 Drawback / Duty Drawback rules, you are now eligible for a refund on those $77,500 in duties you paid to import into Canada. So in all, by leveraging Section 321, K32 and 247 as a partner, you've added $125,000 to your bottom line. Amazing, right?

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