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?
Register with Canadian Government
This is done with a simple form that we'll walk you through completing. Then, you'll become a Non-Resident Importer (NRI) and will receive a Canadian Business Number
Use Canadian Business Number
Use your new Canadian Business Number on all future imports and related documents. Keep track of these documents! We'll need them to file your K32 Drawback claim
Submit Documents to 247
Send as your documents when you import goods into Canada. We'll track your inventory internally and file K32 drawbacks to recoup costs with our customs partners.
You Get a Refund
You will receive a refund in the form of a credit on CARM for future imports or a mailed cheque. 247 takes a % fee of the amount recouped.
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?
Ready to ship to the U.S. from Canada using Section 321 fulfillment?
Leave us a message and we'll get back to you ASAP!