Where the money leaks
A slide-out motor or a replacement window ships from a US plant to your store. The carrier or customs broker clears it, and a few days later an invoice lands in accounting: brokerage fee, disbursement fee, sometimes duty, and GST/HST. Accounts payable pays it, files it, and nobody connects that invoice back to the warranty claim the part belongs to.
Repeat that across a season of warranty and arrival claims and the total is real money. Some of it was never owed in the first place, because the part qualified for duty-free or tax-free treatment that simply was not claimed at the border. Some of it can be refunded by CBSA after the fact. And some of it is a legitimate cost of performing warranty work that the manufacturer may reimburse if it is put on the claim.
This is the work DS360 does for dealers on manufacturer parts: matching broker invoices to the shipments and claims behind them, and processing the customs refunds that apply.
The four recovery levers
Each has its own conditions. What applies to a given shipment depends on the part, how it was shipped and how it was declared.
1. CUSMA preference on originating parts
Parts that qualify as originating under CUSMA (the Canada-United States-Mexico Agreement) can enter at the preferential rate, often free of duty. The claim needs a certification of origin, which CBSA says can be completed by the exporter, producer or importer, in no prescribed format. If duty was paid because preference was not claimed at import, CBSA allows four years from the date the goods were accounted for to claim CUSMA treatment and request a refund of the duty.
2. GST/HST relief on warranty replacements
Schedule VII of the Excise Tax Act lists non-taxable importations, including goods supplied by a non-resident for no consideration (other than shipping and handling) as replacement parts under a warranty. If GST/HST was charged anyway, a GST/HST registrant who was the importer can generally recover it as an input tax credit. Note that CBSA states GST is excluded from all refunds made under customs legislation, so tax comes back through your return, not a customs refund.
3. CBSA refunds for defective goods returned
When an imported part arrives defective, of inferior quality or not as ordered and is exported back to the supplier or disposed of, CBSA Memorandum D6-2-3 (Refund of Duties) sets out a refund of the duties paid on it. The claim needs proof of export and the supplier’s written statement and credit document.
4. Transport and brokerage on the claim
Brokerage fees are a service charge, not a duty, so CBSA will not refund them. Some manufacturers reimburse freight, brokerage or customs charges on warranty parts when they are listed on the claim with the broker invoice attached; others do not. Confirm the rule with each manufacturer, in writing, before you assume either way.
Parts you send south: tariff item 9992.00.00
The flow also runs the other direction. When a component goes back to a US supplier for warranty repair and returns to your store, CBSA Memorandum D8-2-26 covers goods returned after repair or alteration in a free trade partner such as the United States. Tariff item 9992.00.00 provides duty-free entry for qualifying goods, whether or not the repair was under warranty.
For full GST/HST relief, the memorandum says the warranty must cover the full value of all parts and labour. The importer needs proof of export and an invoice or statement from the repairer showing the repair value; without it, duties and taxes may be assessed on the full value of the good.
How to stop paying for warranty parts at the border
A process any parts or warranty desk can run.
Tag every inbound warranty part to its claim
The part order, the shipment and the claim number should travel together from the moment the part is requested. If a broker invoice cannot be tied to a claim, it cannot be recovered or charged back.
Ask the manufacturer for origin documentation
Request a CUSMA certification of origin, or origin statements on the commercial invoice, for the parts they ship you. One standing certification can often cover repeat shipments of the same goods for a period; ask your broker what they need on file.
Give your broker standing instructions
Tell your customs broker which shipments are no-charge warranty replacements and that CUSMA preference should be claimed where documentation exists. Most overpayment happens because the broker declared what the paperwork showed and nothing more.
Review broker invoices monthly
Check each line: duty charged on parts that should have been preferential, GST/HST charged on no-charge warranty replacements, brokerage on shipments the manufacturer should have paid. Flag each one for a correction, an input tax credit or a chargeback.
File corrections and refunds inside the window
Under CARM, adjustments are filed against the Commercial Accounting Declaration in the CARM Client Portal; CBSA stopped accepting paper Form B2 adjustment requests in October 2024. The general refund window under the Customs Act is four years, but do not let it run: interest and errors compound, and documents get harder to find.
Put allowable costs on the warranty claim
Where the manufacturer reimburses freight, brokerage or customs charges, list them on the claim with the broker invoice attached, the same way you attach photos to a repair line. Unattached costs get removed.
This page is general information, not tax or legal advice. Customs and tax treatment depends on the specific goods, how they were shipped and declared, and current CBSA and CRA rules. Confirm every refund or relief claim with your licensed customs broker and your accountant before filing.
Related guides
Warranty parts customs in Canada — FAQ
Do I have to pay duty on warranty parts from the US?
Not necessarily. Parts that qualify as originating under CUSMA can be imported at the preferential rate, often duty-free, if preference is claimed with a certification of origin. If duty was paid because preference was not claimed, CBSA allows four years from the accounting date to claim it and request a refund.
Is GST charged on free warranty replacement parts imported into Canada?
Schedule VII of the Excise Tax Act treats goods supplied by a non-resident for no consideration (other than shipping and handling) as warranty replacement parts as non-taxable importations. If GST/HST was charged, a registered importer can generally recover it as an input tax credit. Confirm with your accountant.
Can I get my customs brokerage fees refunded?
Not from CBSA — brokerage is a fee for the broker’s service, not a duty. Whether the manufacturer reimburses it depends on that manufacturer’s warranty policy, so confirm per manufacturer and attach the broker invoice to the claim when it is allowed.
How do I claim a customs refund under CARM?
Adjustments and refund requests are filed against the Commercial Accounting Declaration (CAD) in the CARM Client Portal, usually by your customs broker. CBSA no longer accepts paper Form B2 adjustment requests.
What if the warranty part arrives defective and I send it back?
CBSA Memorandum D6-2-3 provides for a refund of duties on imported goods that are defective, of inferior quality or not as ordered and are exported or disposed of. You will need proof of export and the supplier’s written statement and credit document.