Exporting to World Markets Guide

TABLE OF CONTENTS

1. Introduction
2. Thinking About Exporting
3. Choosing Your Target Market
4. Regulations
5. International Agreements and Shipping Logistics
6. Authentication and Certification of Documents
7. Export Training
8. Export Financing
9. Sources of Export Assistance
10. Related Reading

1. INTRODUCTION

Are you thinking of selling to international clients? Exporting is the sale of goods or services from Canada to any other country. The global marketplace presents a great opportunity to sell your products and services internationally. The key to success, just as with any other business activity, is to know your market. This guide will provide you with resources to help you learn about foreign markets and make it easier for you to get your products to market.

2. THINKING ABOUT EXPORTING

When you are preparing to export there are several points to consider.

Do you have:

• the time and staff resources?
• enough production capacity?
• the necessary cash flow?
• competitively priced services or products?
• the necessary cultural and language skills?
• a reliable distribution network?

Do you know:

• the market readiness of your product or service?
• your target market and competitors?
• your fit with the new market?
• foreign regulations and tariffs?
• transportation and shipping costs?

Before taking your business abroad, you will also need to learn the basics and find out if your business is export ready. Below you will find some tools and guides to help you.

Export Guides

There are a number of guides available to help you in the early stages of exporting.

Guides

• Step-by-Step Guide to Exporting - Department of Foreign Affairs and International Trade
  Get a better understanding of the exporting process from the Trade Commissioners Service's exporting guide. The guide is designed to provide you with practical information to help you assess your export capabilities. It also steers you through the process of planning and executing your first exporting venture.
  
  Read online:
  Step-by-Step Guide to Exporting
   
• A Step-by-Step Guide to Exporting - Canada Border Services Agency
  Your small or medium-sized business can get an overview of the process for exporting goods from Canada. The Canada Border Services Agency's guide provides information on exporting in a straightforward, step-by-step format.
  
  Read online:
  A Step-by-Step Guide to Exporting
   
• Getting Ready to Export
  Get information on the fundamentals of export success and access resources available to Ontario businesses entering foreign markets.
  
  Read online:
  Getting Ready To Export
   
• Exporting Goods from Canada
  Learn about Canada's export regulations and your obligations for exporting goods.
  
  Read online:
  Exporting Goods From Canada: A Handy Guide for Exporters
   
• Linking In to Global Value Chains: A Guide for Small and Medium-Sized Enterprises
  Learn how you can improve the competitiveness, profitability and long term sustainability of your small or medium sized business. The Trade Commissioner Service provides information on the possibilities that global value chains offer to Canadian businesses.
  
  Read online:
  Linking In to Global Value Chains
   
• CanadExport
  Access Canada's official source of news and advice on trade, export and investment opportunities around the world. Entrepreneurs who want learn about competing, partnering and prospering in the global marketplace can subscribe to this e-magazine.
  
  Read online:
  CanadExport

3. CHOOSING YOUR TARGET MARKET

Market research is an essential part of export business planning. It is important to obtain information about potential export markets and develop an export marketing plan.

You can start by researching:

• demographics
• economic profiles
• geography
• intellectual property protection
• political and legal aspects
• trade practices and customs
• culture and consumer patterns
• transportation and communication systems
• risk assessment
• currency/inflation rates

When you have done the research on these and other issues that may have an impact on your product or service, you can make an informed decision about exporting.

Read online:
International Markets
Guide to Market Research and Analysis
Marketing Basics
Secondary Market Research Service

The following resources can help you research and identify export markets:

• Virtual Trade Commissioner
  Your gateway to a world of export information online. You can find current market reports, sector-specific news and trade events, and access to the Canadian Trade Commissioner Service right at your fingertips.
  
  Use online:
  Virtual Trade Commissioner (VTC)
   
• Business Development Bank of Canada (BDC) Consulting
  You can get customized consulting solutions for the complex challenges you face everyday as a Canadian entrepreneur, including assistance with market research, export planning and globalization.
  
  Contact the BDC:
  1-877-232-2269
  BDC Consulting
   
• Exporting Intellectual Property
  Intellectual properties are creative ideas or designs that have commercial value. Get more information on how to protect your intellectual property when you export it to a foreign market.
  
  Read online:
  Protecting your Intellectual Property in Export Markets
  Licensing your Intellectual Property
   
• Trade Data and Statistics
  You can take advantage of Statistics Canada's detailed trade data. The information is available online for anyone whose business depends on importing or exporting (costs are applicable).
  
  Use online:
  International Trade
   
• Trade Data Online
  Access detailed information on Canadian and U.S. imports, exports and trade balances in terms of dollars or percentages, based on data from Statistics Canada and the U.S. Census Bureau. Information for over 200 countries is available.
  
  Use online:
  Trade Data Online
   
• Agri-Food Trade Service (ATS)
  Get help accessing domestic markets and exporting your agricultural, fish or seafood products to foreign markets, through market information, trade counselling and a variety of export support activities.
  
  Contact ATS:
  519-829-9400
  Agri-Food Trade Service
   
• Country Insights
  Take advantage of free access to invaluable information on the countries and cultures of the world.
  
  Use online:
  Country Insights
   
• EDC Country Information
  Find information on political and economic developments in a variety of countries around the world.
  
  Use online:
  Country Information
   
• CIA World Factbook
  You can find basic intelligence on countries through the Central Intelligence Agency's (CIA) World Factbook. Country profiles highlight the country's background, geography, people, government, economy, communications, transportation, military and transnational issues.
  
  Use online:
  CIA World Factbook

Businesses that have identified a specific product or service to export and targeted a particular geographic market should ensure that they have a well developed export business plan.

Read online:
Writing an Export Plan

4. REGULATIONS

There are various regulations that apply to exporting goods from Canada to other parts of the world.

For regulatory or legal questions, it may be useful to contact a lawyer that deals with business regulations through the Law Society of Upper Canada's Lawyer Referral Service.

Contact Law Society of Upper Canada:
1-800-268-8326
Law Society of Upper Canada's Lawyer Referral Service

Business Number - Importer/Exporter Account Number

All Canadian businesses and individuals who are exporting on a commercial basis must obtain a Business Number from the Canada Revenue Agency (CRA).

Contact the CRA:
1-800-959-5525
Business Number

Canada Border Services Agency (CBSA)

CBSA is the main federal agency responsible for border enforcement and customs services. It regulates the flow of persons and goods across the Canadian border and collects all applicable duties, tariffs and taxes. Through its Border Information Service, a computerized, 24-hour telephone service you can access information on various customs topics free of charge from anywhere in Canada. Press "0" during regular business hours to speak with an agent.

Contact CBSA:
1-800-461-9999

CBSA has shared responsibility for:

• Reporting Exports
  If your commercial shipments are valued at more than $2,000 (CDN) and are exported to a country other than the United States, you must report the export to CBSA. You can file your report in one of four ways:

• G7 Electronic Data Interchange Export Reporting
• Canadian Automated Export Declaration (CAED)
• Export Summary Reporting
• B13A Export Declaration

Read online :
Methods of Reporting Your Exports
 

• Exports of Prohibited and Controlled Goods
  Find out if the product you are exporting is prohibited or controlled. Certain goods are prohibited from entering or leaving Canada or require permits, certificates, labelling or authorization from a federal department are needed before Canada Border Services Agency (CBSA) will release the goods.
  
  Read online:
  Customs D Memoranda
  CBSA Directory of Acts and Regulations of other Government Departments and Agencies
   
• Exporting Cultural Property
  If you plan on exporting objects of historical, scientific and cultural significance you may require an export permit. The Canadian Cultural Property Export Control List identifies the categories of cultural property that require a permit before the object can be exported.
  
  Read online:
  Memorandum D19-4-1
  Canadian Heritage - Exporting Cultural Property from Canada
   
• Crossing the border with $10,000 or more?
  If you are crossing the Canadian border with $10,000 or more in Canadian funds or its equivalent in any form you have to report this to Canada Border Services Agency. The same applies if you are sending this amount by courier or by mail into or out of Canada, on your own behalf or the behalf of someone else.
  
  Read online:
  Cross Border Currency Reporting
   

Export Permits

You will need an Export Permit if you are exporting to a country on the Area Control List or when the goods are on the Export Control List. The Trade Controls & Technical Barriers Bureau (TCTBB) of Foreign Affairs and International Trade Canada (DFAIT) can help you determine if export permits are required and publishes brochures and Notices to Exporters that are available free on request.

Contact the Export and Import Controls Bureau:
1-800-267-8376
TCTBB - Exporting

Canadian Economic Sanctions

You may need certain certificates and permits if you want to export goods or services to a country or group that is subject to Canadian economic sanctions. Economic Law Section (JLHB) of the Department of Foreign Affairs and International Trade (DFAIT) maintains on their website a list of destinations that are under sanctions and can help you with the application process for permits you might need.

Read online:
Canadian Economic Sanctions - Certificates and Permits

Export Controls On-Line (EXCOL)

EXCOL is a user friendly web-based application where exporters can submit applications for export permits and certificates, as well as request amendments and to print selected permits in your office.

Contact EXCOL:
1-877-808-8838
Export Controls Online (EXCOL)

Standards Council of Canada

The Standards Council of Canada (SCC) offers businesses a number of specialized standards and standards-related information products online such as:

• Export Alert! – advance warning of changes to foreign regulatory requirements that apply to your product.
• RegWatch – a database of standards referenced in federal legislation;
• Standards Alert! – notification of new and revised Canadian and international standards.

Contact the Standards Council of Canada:
613-238-3222
Information Services

5. International Agreements and Shipping Logistics

A large part of the exporting process involves getting your goods to their destination. This means not only arranging for the physical transport of your goods- by ship or land or air - but also completing paperwork and complying with laws and regulations set out by authorities in the target country. Below you will find information on some of the regulations that you may encounter.

Harmonized Commodity Description and Coding System (HS)

Your product has six-digit number that identifies it. The number is used by customs officials around the world to determine the duties, taxes and regulations that apply to products entering their country.

Searching Statistics Canada's Canadian Export Classification database can help you identify the HS code for your goods.

Visit the websites:
Canadian Export Classification
Customs Tariff - Harmonized Commodity Description and Coding System (HS)

Identifying Tariff and Non-Tariff Barriers

Many countries have trade agreements with Canada that make it easier for you to export your goods. Other countries have tariffs that must be paid when goods enter their country.

It is important to identify tariff and non-tariff barriers that may apply to your product or service in a foreign market. Are there restrictions in the form of taxes, import duties or quotas? Are there trade agreements which favour the goods and services of one country over another?

Foreign Affairs and International Trade Canada (DFAIT) through its Tariffs and Goods Market Access Division provides information to Canadian exporters such as:

• Tariffs, taxes, rules of origin and some entry procedures for Canadian goods being exported to foreign countries
• Labelling information on U.S. Food Product such as counselling on FDA/USDA food product labelling for the United States (FDA: Food Drug Administration; USDA: U.S. Department of Agriculture)

Contact DFAIT:
1-800-267-8376
Trade Negotiations and Agreements (TNA)
Tariff Information

You can also choose to have these logistical requirements handled by an experienced export broker or freight forwarder.

Read online:
Freight Forwarders and Customs Brokers

Duty Deferral Program

There are custom programs that allow you to defer payments on goods you have imported and will be exporting, under specific circumstances.

Contact Canada Border Services Agency:
1-800-461-9999
Duty Deferral Program

Some of the programs that are part of the Duty Deferral Program include:

• Drawback Program
  You can get a refund of the duties paid on imported goods that are eventually exported.
   
• Duties Relief Program
  Relieves the payment of duties on imported goods that will eventually be re-exported either in the same condition or after being used, consumed or expended in the processing of other goods.
   
• Customs Bonded Warehouse Program
  You can store goods duty and tax free in a licensed and regulated facility operated by the private sector. The goods can be stored for a limited time until they are exported or are consumed domestically. Relief of the HST is available under this program.
   
• Temporary Exportation Programs
  All goods entering Canada, even those being imported temporarily or those goods which were exported temporarily are subject to duty and tax on their full value. You can apply for relief on the duties and taxes owing goods under specific circumstances.
   

6. AUTHENTICATION AND CERTIFICATION OF DOCUMENTS

When you start to export you may be asked to present official documentation, which can include providing authenticated and certified documents. Below are a number of options to get the required authentication and certification.

Canada: Authentication of Documents

The Department of Foreign Affairs and International Trade (DFAIT) authenticates or certifies signatures on various Canadian documents for use abroad (for example, birth, certificates, contracts, and government documents such as patents and trademark registrations).

As a starting point, please contact the Authentication and Service Division, Documents Section of DFAIT.

Contact DFAIT
1-800-267-8376
Authentication of Documents

Ontario: Official Documents Services (ODS)

If you are doing business or travelling abroad, you may be required to provide proof of authentication for official documents issued in Ontario. The ODS office of the Ministry of Government Services formally authenticates legalized documents requested by foreign consulates and embassies.

Contact ODS:
416-325-8416
Official Documents Services

Other: Canadian Chamber of Commerce - Certification of Documents

Many health-related, food and beverage products will require additional documentation in the form of a certificate, that can be obtained from the Canadian Chamber of Commerce for a small fee.

Contact Canadian Chamber of Commerce:
613-238-4000
Certification of documents

7. EXPORT TRAINING

Having the right training and skills is necessary for you or your employees when dealing with the complex and evolving field of export.

Here are some resources that can help you:

International Trade Branch (Ontario Exports) - Seminars and Workshops

Take advantage of regional events that feature a half day program of workshops, roundtable discussions and networking sessions focused on export topics of interest to local small and medium-sized companies. The Ministry of Economic Development and Innovation (MEDI) offers general export information on: Export Financing, E-Commerce, E-Business, Internet Exposure Benefits, and Managing Export Growth.

Contact MEDI:
416-325-6665
Our Programs and Services
Calendar of Trade Events

The Forum for International Trade Training (FITT)

FITT provides interested exporters with the training and skills necessary to compete in international markets through their FITTskills Courses:

• Global Business Environment
• Global Supply Chain Management
• International Trade Research
• International Marketing

Contact FITT:
1-800-561-3488
FITTskills Program

Professional Development Modules

Get help understanding topics such as the import tariff classification system, NAFTA, export documentation and regulations, through online training modules offered by the Canadian Society of Customs Brokers (CSCB). You can register even if you are not a member.

Contact the Canadian Society of Customs Brokers:
613-562-3543
Professional Development Modules

8. EXPORT FINANCING

Finding and exporting to new markets can require good financial resources. You may have to expand your production facilities, develop a distribution network, or accommodate a buyer who is requesting the best terms possible and guarantees before buying your product or service. Listed below are different financing options that may be available to your export venture.

Export Development Canada (EDC)

EDC offers a range of risk reduction financial products and services, to small exporters interested in export receivables insurance and export financing support. They also provide services to any exporter, of any size, operating in any sector of the economy (including the service sector) and generally looks for at least 50% Canadian content.

Services include:

• EDC Insurance Programs
• EDC Financing for Canadian Companies
• EDC Bonding Solutions for Canadian Companies
• EDC Customer/Credit Information
• EDC Research Panel

Contact EDC:
1-866-283-2957

Business Development Bank of Canada (BDC)

Explore financial services that focus on market expansion and exporting to the Canadian small business sector.

Contact BDC:
1-877-232-2269
Going global

Export Market Access

Export Market Access: A Global Expansion Program is designed to assist small to medium size organizations (SMEs) access and expand into new foreign markets that are beyond the U.S.

This support program offers financial assistance with:

• direct contacts
• marketing tools
• market research
• foreign bidding projects

Contact the Ontario Chamber of Commerce:
416-482-5222
Export Market Access (EMA)

For other export financing programs that may be of assistance to you consult the Canada Business Exporting Financing page online.

9. SOURCES OF EXPORT ASSISTANCE

Take advantage of available help to get your business export ready. There are organizations that offer a number of services that can help you expand to international markets.

Read online:
Organizations That Can Help You Export

Trade and Investment

You can access a wide range of management resources, perspectives and data from Industry Canada's website that can help you develop and expand your markets, create alliances and find new clients.

Read online:
Trade and Investment

Programs and Services by Industrial Sector

Access in-depth, industry-specific analysis, statistics, contacts, news, events, financing and regulatory information for Canadian business from Industry Canada.

Use online:
Information by Industrial Sector

Canada-Ontario Export Forum (COEF)

The COEF is a source for the information, counselling, market intelligence, financial assistance and on the ground support you need to make your export venture a successful one. You can reach COEF by email at coef@iecanada.com

Contact COEF:
416-595-5333 ext. 26
Canada-Ontario Export Forum (COEF)

International Trade Branch (Ontario Exports)

Benefit from seminars and the help of expert international consultants from the International Trade Branch (ITB), part of the Ontario Ministry of Economic Development and Innovation. The ITB can help your Ontario business start exporting or expand into new markets.

Contact the International Trade Branch:
1-877-468-7233
International Trade Branch (ITB)

Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)

If you are a new or experienced exporter of food, beverage and agricultural products the Export Marketing Unit of OMAFRA offers a number of services, including counselling, seminars, trade missions, international trade shows, sourcing and market intelligence. They also administer the PROFIT Food Export Seminar; a two-day seminar that addresses the basics of exporting to the U.S. market.

Contact OMAFRA:
1-888-466-2372
Export Services
PROFIT Seminar for the Program to Raise Ontario Foods International Trade

Foreign Exchange Facility Guarantee

Take advantage of EDC's Foreign Exchange Facility Guarantee (FXG) by purchasing forward contracts from financial institutions and locking in exchange rates as protection against foreign currency fluctuations.

Read online:
Foreign Exchange Facility Guarantee

Canadian Commercial Corporation (CCC)

Get assistance with government procurement, specifically in aerospace, defence and security, and emerging and developing country markets. The CCC is an export sales agency of the Government of Canada that brings buyers and Canadian exporters together through contracts built on the best possible terms and conditions.

Contact CCC:
1-800-748-8191
Canadian Commercial Corporation

Business Women in International Trade

The Business Women in International Trade website is a gateway to a wealth of information on preparing for and succeeding in the export marketplace.

Read online:
Businesswomen in International Trade

10. Related Reading

Other CBO documents of interest:

• Exporting to the United States Guide
• Business Guides

Non-governmental Trade Organizations

There are many trade organizations that have a strong export focus. Many of these organizations offer seminars and export information on foreign markets:

• Canadian Manufacturers and Exporters (CME)
• The Canadian Boards of Trade and Chambers of Commerce
• Ontario Chamber of Commerce (see Export Market Access listed above)
• Municipal Boards of Trade and Chambers of Commerce (Visit the web site: World Chambers Network)
• Local Economic Development Offices
• Canadian Logistics Industry
• Trade Start

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.