← See the Drawback ProgramWho Can Claim: Marketplace Sellers

Duty Drawback for Marketplace Sellers in the U.S. and Canada

Sell on Amazon, Walmart, Shopify or another marketplace? Orders that ship across the border, and some returns, can carry import duty you can get back.

In short

If you import inventory, pay duty, and later sell some of it to buyers in another country, the duty on those units may be refundable. This works whether you sell from the U.S. or from Canada.

U.S. sellers can recover up to 99% of eligible duty through CBP, with five years from each import to claim. Customer returns can qualify too.

Canadian sellers can recover the full customs duty on goods exported unchanged, including to U.S. buyers, with four years from each import to claim.

Marketplaces make cross-border selling easy. What they do not do is tell you that the duty on every unit that leaves the country can come back. New orders ship every day, so the opportunity keeps growing. That is why we set it up as a program, not a one-off claim.

Do your orders cross the border?

Answer three quick questions to see if a drawback program makes sense for you.
See If You Qualify →

How it works in each country

Selling from the U.S.Selling from Canada
Customs agencyCBPCBSA
RefundUp to 99% of eligible dutyFull customs duty on goods exported unchanged
Time to claim5 years from each import4 years from the release of each import
Orders to buyers abroadUnused merchandise drawback. Substitution allowed by 8-digit HTS codeSame-condition export drawback
Orders across the U.S.–Canada borderTo Canada or Mexico: direct identification of units only, no substitutionTo the U.S.: full drawback. The CUSMA cap does not apply to goods exported unchanged
Customer returnsCan qualify if exported or destroyed under CBP supervisionReturns resold in Canada do not qualify
Not refundedSection 232 duties, antidumping and countervailing duties. IEEPA tariffs go through a separate CBP processGST and HST. Recover these as input tax credits

Repacking, relabelling and kitting for fulfilment do not usually stop goods qualifying in either country.

Which orders qualify?

ScenarioDrawback?
Order shipped to a buyer in another countryYes, potentially
Inventory moved to a fulfilment centre or 3PL in another countryYes, potentially
Unsold stock returned to your overseas supplierYes, potentially
Customer returns exported or destroyedU.S.: yes, potentially. Canada: depends on the goods and their condition
Order delivered to a buyer in your own countryNo
Returns resold in your own countryNo

Worked examples

U.S. seller

A U.S. kitchenware brand pays about $6 of duty per unit, including Section 301 tariffs. 15,000 units a year ship to buyers outside North America and 4,000 unsellable returns go to an overseas liquidator. At 99%, that is about $113,000 a year in potential refunds.

Canadian seller

A Toronto home goods brand pays $36,000 a year in duty. About 40% of units ship to U.S. buyers from its Canadian 3PL. That is about $14,400 a year, or up to about $57,600 across four years if it has never claimed.

Example figures are simplified for illustration. Actual duty depends on classification, origin and customs value.

The records you already have

Most marketplace sellers already hold what a claim needs. It is spread across different systems:

  • Import entries showing duty paid. U.S.: CBP Form 7501 from your broker. Canada: broker statements or the CBSA CARM portal
  • Supplier invoices with SKUs and quantities
  • Order reports from each marketplace and your own store, with SKU, quantity and ship-to country
  • Shipping and tracking data as proof the goods left the country
  • Return records showing what came back and where it went

The work is in matching them, tying each exported SKU to an eligible import. That is what we do.

Why a program, not a one-off claim

  • New orders ship every day. A single historical claim leaves every future order unclaimed.
  • Old imports expire. Each month without a claim, the oldest imports fall outside the 5-year (U.S.) or 4-year (Canada) window.
  • U.S. returns need regular claims. Returns must be matched to an import from the year before, so they are best claimed on a schedule.

We recover the eligible history first, then run the process on a set schedule so new orders keep getting claimed.

Common mistakes

Assuming the marketplace handles it

Marketplaces handle the sale, not your import duty. Nobody files drawback for you.

Thinking parcels are too small to matter

A few dollars of duty per unit adds up across thousands of orders and several years.

Counting domestic orders

Only units that left the country count. Filter by ship-to country.

U.S.: using marketplace disposal for returns

Destruction only counts if CBP is notified first and can supervise it. Standard marketplace disposal programs usually do not meet this.

U.S.: not knowing who the exporter is

If a marketplace export program or forwarder is the exporter, you need their written waiver of the right to claim.

Canada: claiming GST or HST

GST and HST are not refunded through drawback.

How Drawback Hero helps

Send us your import entries and an export of your orders and returns. We confirm what qualifies in each country, match exported units to duty-paid imports, and coordinate licensed drawback specialists to file with CBP or the CBSA. Then we keep it running for future orders. No successful recovery, no success fee.

Frequently Asked Questions

Can Amazon sellers claim duty drawback?

Yes, potentially, in both the U.S. and Canada. If you imported the goods, paid duty, and sold them to buyers in another country, the duty on those units may be refundable.

I sell from Canada to U.S. buyers. Does CUSMA stop the refund?

No. Goods exported to the U.S. in the same condition they were imported can qualify for full drawback of Canadian customs duty.

I sell from the U.S. to Canadian buyers. Does that qualify?

Yes, but only by direct identification of the imported units. Substitution is not allowed for exports to Canada or Mexico.

Do customer returns qualify?

In the U.S., yes, if they are exported or destroyed under CBP supervision. In Canada, returns resold in Canada do not qualify.

How far back can I claim?

Five years from each import in the U.S. Four years from the release of each import in Canada.

What does it cost?

The assessment is free. After that we earn a percentage of what is recovered. No successful recovery, no success fee.

This page provides general information and is not legal, tax or customs advice. Sources: 19 U.S.C. 1313(c) and (j), 19 CFR Part 190, CBSA Memorandum D7-4-2 and Memorandum D7-4-3. Marketplace names are used for illustration only. Eligibility depends on the facts of each transaction and the rules in effect at the time.

See If Your Orders Qualify

Free opportunity assessment. If there is a refund worth pursuing, we build and run the program. No successful recovery, no success fee.

See If You Qualify →