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Exporting - Entering World Markets Info-Guide

Last Verified: 2010-02-26

TABLE OF CONTENTS

  1. Making the Export Decision
  2. Helping Exporters Get into Foreign Markets
  3. Market Research - Picking Your Target Market
  4. Export Business Planning
  5. Export Training
  6. Export Financing
  7. Canadian Export Regulations
  8. Foreign Regulations
  9. Free Trade Agreements
  10. Getting Your Product to its Destination
  11. Export Information and Counselling Services
  12. Other Resources


1. Making the Export Decision

Deciding to export is a serious step towards the growth of your business. It requires careful market research and planning to assess the risks and benefits of taking your product or service to new markets. Getting your product to other countries, currency exchanges, domestic and other foreign competitors in that market, standards and making arrangements for payment are all important considerations once your potential markets have been identified. Finding support in Canada for exporting may also play a crucial role.

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.

For further information:
call 1-800-268-8326
visit the website: Law Society of Upper Canada's Lawyer Referral Service

There are a number of reasons to consider exporting:

  • New and expanding markets may generate ideas for future product or service advancements;
  • Exporting may reduce the risk caused by reliance on a single market;
  • Exporting may increase sales and profits in the long-term;
  • Exporting may open up the market base, particularly for niche or unique service or product types.

Although this is not an exhaustive list of considerations, businesses preparing to export should take the following considerations into account:

  • Is my firm prepared to devote the time and resources necessary to break into foreign markets?
  • Does my business have the production capacity for new markets?
  • Do I have sufficient cash flow to support export market demands?
  • Is my product or service ready for international markets or are modifications required to meet the needs of interested foreign customers?
  • Where is the best place in the world to sell my product or service and why?
  • Should my business look at hiring export professionals (e.g., export consultant, freight forwarder, customs broker)?
  • Is exporting consistent with my company's other objectives?
  • Can my goods and/or services be easily distributed abroad?
  • Is my product and/or service cost competitive?
  • Is my company capable of conducting business in the appropriate language/time zone?

2. Helping Exporters Get into Foreign Markets

Canada Business

Canada Business provides information and tools for new and experienced exporters, with access to multiple sources of export-related information.

For further information:
visit the website: Canada Business - Exporting

Support to the Export Industry

CBO Regional Access Sites

CBO Regional Access Sites can assist in finding comprehensive export information, as well as provide access to computers connected to the Internet to help conduct additional research.

For further information:
visit the Regional Access Program Locations page

Export Market Access

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

This support program offers financial assistance with the following:
  • Direct Contacts
  • Marketing Tools
  • Market Research
  • Foreign Bidding Projects

For further information:
visit the website: Ontario Chamber of Commerce - Export Market Access

3. Market Research - Picking Your Target Market

To assist with your research, please see: Exporting - Preparing for World Markets Info-Guide

Your next step is to take a closer look at a particular country or region, assess your competition and evaluate your customer base. Much of this information can be found by accessing market studies.

International Trade Canada (ITCan)'s Market Research Centre

The Market Research Centre (MRC) produces a full range of sectoral market studies to help Canadian exporters identify foreign market opportunities. Each report contains a market overview, a section on customers and distribution channels, an analysis of principal market-access issues and a listing of key promotional venues. Reports also include the names of local importers and information on their size, product range and territory.

For further information:
visit the website: Market Reports  

Agri-Food Trade Service (ATS)

The Agri-Food Trade Service is an international business development service. The network covers government services for industry in international business development.

For further information:
visit the website: ATS - Market Information
see the document Agri-Food Trade Service (ATS)

InfoExport

InfoExport is the website of the Canadian Trade Commissioner Service (TCS). This site is designed to help Canadian companies that have researched and selected their target markets.

For further information:
visit the website: Canadian Trade Commissioner Service (TCS)

Market Analysis Tools

Access key international trade data for your market research using an innovative tool created by the International Trade Centre (ITC).

To access these tools, you will need a user name and password, which can be obtained by filling in the form on the website.

The registration also provides free access to Product Map, another tool for analyzing international trade data.

For further information:
visit the website: Market Analysis Tools
see the document Market Analysis Tools

Canadian Industry Statistics

The Canadian Industry Statistics presents and analyses industry data on the number of establishments, gross domestic product and labour productivity for industry sectors in the Canadian Economy using a few of the latest annual data sources from Statistics Canada.

For further information:
visit the website :Canadian Industry Statistics
see the document Industry sector data

Export Market Access

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

One of the eligible areas of activity targeted by this financial support program is market research.

For further information:
visit the website: Ontario Chamber of Commerce - Export Market Access

Organisation for Economic Cooperation and Development (OECD)

The Organisation for Economic Cooperation and Development (OECD ) is an international multilateral organization of which Canada is also a member. It provides biennial, comparable statistical, economic and social data rapports for all member countries and many non member countries along with detailed analyses of economic factors and trends on an on-going, regular basis.

Older publications of the OECD are available complete and free of charge through Google Book Search.

For further information:
visit the websites:
Organisation for Economic Co-operation and Development
Google Book Search - Publications by OECD on Canada

4. Export Business Planning

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. There are several online planning tools available to help businesses create an export plan.

For further information:
see the document Writing an Export Plan

Export Diagnostic

Test your export readiness with this online tool and get feedback on priority activities to address before you expand to export market.

For further information:
visit the web site: Export Diagnostic

EXPORT Able?

This tool, developed by Export Development Canada (EDC), helps gauge a level of export readiness and addresses many questions or concerns regarding a potential decision to export.

For further information:
please call 1-866-283-2957 weekdays 8 a.m. - 6 p.m. EST
visit the website: EXPORT Able? - EDC

Export Market Access

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

This support program offers financial assistance with marketing tools and direct contacts.

For further information:
visit the website: Ontario Chamber of Commerce - Export Market Access

5. Export Training

Businesses committed to exporting may be interested in training programs to assist them in the practical aspects of exporting their product or services.

FITT (Forum for International Trade Training)

FITT equips individuals and businesses with the practical skills they need to succeed in today's competitive global marketplace.

For further information:
visit the website: FITT

ExportUSA

Programs for companies about to export to the United States, who already export to the U.S and companies interested in becoming exporters to the U.S..

For further information:
visit the web site: Export USA Calendar
see the documents
ExportUSA
New Exporters to Border States Program for Ontario (NEBS)

PROFIT Food Export Seminar

Ontario Food Exports offers the PROFIT (Program to Raise Ontario Foods International Trade) seminar to companies interested in learning about the mechanics of exporting food and beverage products to the United States. PROFIT is an informative two-day, hands-on export training program.

For further information:
visit the website: Export Services
see the document PROFIT Seminar for the Program to Raise Ontario Foods International Trade

Export Seminars and Workshops

Ontario Trade Days are regional events that feature a half day program of workshops, round-table discussions and networking sessions focused on export topics of interest to local small and medium sized companies..

For further information:
please call 1-877-468-7233
see the document Export Seminars and Workshops

BDC Consulting

The Business Development Bank of Canada (BDC ) offers customized consulting solutions for the complex challenges you face everyday as a Canadian entrepreneur.

For further information:
see the document BDC Consulting

6. Export Financing

Export Development Canada (EDC)

Export Development Canada (EDC) offers export finance and a broad range of risk management services to exporters operating in any sector of the economy and generally looks for at least 50% Canadian content.

For further information:
visit the websites:
Export Development Canada
Working Capital Solutions

EDC's Accounts Receivables Insurance

EDC's Accounts Receivables Insurance protects Canadian businesses against non-payment by U.S. and foreign customers.

For further information:
visit the website: Accounts Receivable Insurance

ExportExpressCredit

The program provides unsecured loans of up to $50 000 with flexible repayment terms of up to two years.

For further information:
visit the website: ExportExpressCredit
see the document ExportExpressCredit

Single Buyer Insurance

Single Buyer Insurance can be used to cover an unlimited number of sales, to the same customer for six months, on contracts worth up to USD 250,000.

For further information:
visit the website: Single Buyer Insurance

NORTHSTAR Trade Finance Inc.

NORTHSTAR Trade Finance Inc. supports exporters of small and medium Canadian enterprises by financing export sales of $100 000 to $5 000 000, with repayment terms of one to five years

For further information:
visit the website: Northstar Trade Finance
see the document NORTHSTAR Trade Finance Inc.

EXPORT Finance Guide

The EXPORT Finance Guide from Export Development Canada is your source for export finance information.

For further information:
visit the website: EXPORT Finance Guide

Canadian Commercial Corporation (CCC)

The Canadian Commercial Corporation (CCC) is an export sales agency of the Government of Canada which is involved in facilitating and structuring export sales on behalf of Canadian companies.

For further information:
visit the websites:
Canadian Commercial Corporation
Selling to NASA
Selling to U.S. DoD

International Prime Contractor Service

The International Prime Contractor Solution is an effective business solution for selling to government customers around the world.

For further information:
visit the website: International Prime Contractor Service

IFInet - Projects in International Development

The System provides Canadian exporters with information about international business opportunities funded by the International Financial Institutions (IFIs) such as the World Bank and major Regional Development Banks.

For further information:
visit the website: IFInet

Canadian International Development Agency (CIDA)

CIDA 's mandate is to support sustainable development in developing countries and to provide them with assistance.

For further information:
visit the website: Canadian International Development Agency

Export Market Access

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

This support program offers financial assistance with the following:

  • Direct Contacts
  • Marketing Tools
  • Market Research
  • Foreign Bidding Projects

For further information:
visit the website: Ontario Chamber of Commerce - Export Market Access

7. Canadian Export Regulations

There are various regulations which apply when exporting Canadian goods to other regions of the world. Some of these programs are related to refunds or relief of duty paid on imported goods for re-exporting; others relate to reporting of exports as well as restrictions on exported products and their destination. Businesses that plan to make exporting an integral part of their operation should be familiar with applicable regulations and export procedures.

For further information:
visit the website: Canada Business - Export Laws, Regulations, and Permits

Business Number - Importer/Exporter Account Number

All Canadian individuals or businesses exporting on a commercial basis must obtain a Business Number in order to account for their goods.

For further information:
visit the website: Registering Your Business
see the document Import-Export Account of the Business Number

Border Information Service - BIS

Border Information Service An automated telephone service providing information on a variety of border services topics.

For further information:
please call 1-800-461-9999
visit the website: Border Information Service

Reporting of Exports

Exporters must report to CBSA commercial shipments valued at more than $2,000 (CDN) exported to a country other than the United States, as well as any goods being shipped through the United States to another country.

Canadian Automated Export Declaration (CAED)

The Canadian Automated Export Declaration (CAED) is a Windows-based software application. The CAED is available free of charge and has been designed to offer flexibility and convenience, to streamline the export reporting process by automating the preparation of CBSA's B13A Export Declaration. It provides exporters or their agents the ability to transmit completed Export Declarations directly to the Government of Canada via the Internet.

Exporters who do not use the CAED must report their exports by completing form B13A Export Declaration.

For further information:
visit the websites:
Export Registration/CAED Canadian Automated Export Declaration 
Exporters
B13A Export Declaration
Summary Reporting
G7 EDI Export Reporting
Directory of CBSA Offices
Canada Border Services Agency Sessions and Seminars

Exports of Prohibited and Controlled Goods

Some government departments prohibit certain goods from entering or leaving Canada. Certain other goods are controlled, meaning that permits, certificates, labelling or authorizations from a federal department are needed before CBSA will release the goods. Exporters must submit a permit or certificate when shipping controlled, regulated or prohibited goods.

For further information:
please call 1-800-461-9999
visit the websites:
Customs D Memoranda
Imports and Exports of Prohibited and Controlled Goods

Export Permits

Export Permits are required when the export destination is a country on the Area Control List or when the goods are on the Export Control List. The Export and Import Controls Bureau (TPI) of Foreign Affairs and International Trade Canada (DFAIT) provides assistance to exporters in determining if export permits are required and publishes brochures and Notices to Exporters that are available free on request.

For further information:
please call 613-996-2387
visit the websites:
Export and Import Controls Bureau
Export and Import Controls Bureau - Notices
EICB - How to Obtain a Permit
A Guide to Canada's Export Controls

Exporting Cultural Property

The Cultural Property Export and Import Act ensures the preservation of important objects related to Canadian heritage by establishing export restrictions for certain categories of objects of historical, scientific and cultural significance. The Canadian Cultural Property Export Control List identifies the categories of cultural property for which a permit is required before the object can be exported. The Cultural Property Export Regulations states that anyone exporting cultural property falling within one of the identified categories of the list will require an export permit.

For further information:
visit the website: Canadian Heritage - Exporting Cultural Property from Canada

Customs Duty Programs

Duty Drawback

Duty Drawback is a refund of the duties paid on imported goods. In this case, the drawback applies to duties paid on imported goods that are eventually exported.

For further information:
visit the websites:
Duty Drawback Program - Memorandum D7-4-2
NAFTA Requirements for Drawback - Memorandum D7-4-3
Duty Drawback Program - Forms

Duties Relief

Duties Relief 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.

For further information:
visit the websites:
Duty Deferral and Relief
Duty deferral and relief - Memorandum D7-4-1
see the document Duty Deferral Program

Customs Bonded Warehouses

Customs Bonded Warehouses are Canada Border Services Agency (CBSA) licensed and regulated facilities operated by the private sector where goods can be stored duty free and tax free (generally for up to four years) until they are exported or are consumed domestically. Relief of the HST is available under the Customs Bonded Warehouse Program.

For further information:
visit the website: Customs Bonded Warehouse Program D7-4-4

Temporary Importation/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, unless there is a provision in legislation or regulations to relieve the duties and taxes owing.

For further information
visit the website:
Temporary exportation programs
D8-1-1 Temporary Importation Regulation

8. Foreign Regulations

Foreign Governments

Foreign governments may put in place a range of laws and regulations to protect consumers, industries and maintain standards or control the inflow of foreign products. Controls can be in the form of tariffs (duties imposed on imported goods) or non-tariff barriers (e.g. quotas, import permits and special restrictions). There may also be safety, quality or technical standards, health or environment regulations, labelling, packaging, measurement or other requirements to meet.

For further information:
visit the websites:
Worldwide Business Briefings
Foreign Representatives in Canada
see the documents:
Exporting Goods Regulations
Canada Business - Exporting

The Standards Council of Canada

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

  • Export Alert!, the only automated electronic mail (E-mail) notification service which provides advance warning when foreign regulators change the requirements that apply to your product;
  • RegWatch, a database of standards referenced in federal legislation;
  • Standards Alert! an E-mail notification service on new and revised Canadian and international standards.

Please visit SCC's website to subscribe to Export Alert!

Please visit SCC's website for more information on RegWatch

Please visit the Standards Council's website to subscribe to Standards Alert!

Identifying Tariff and Non-Tariff Barriers

Exporters need to identify tariff and non-tariff barriers before the introduction of their 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?

International Trade Canada (ITCan), through its Multilateral Market Access (TMA), provides information to Canadian exporters such as:

  • Tariffs, taxes, rules of origin and some entry procedures for Canadian goods being exported to foreign countries; and
  • 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).

For further information:
visit the websites:
Trade Negotiations and Agreements (TNA)
Multilateral Market Access (TMA)

9. Free Trade Agreements

Canada has entered into free trade agreements to reduce or eliminate tariffs on products. New exporters should be aware of any arrangements Canada has with other countries in order to assess the impact such agreements may have on products being exported.

To access Internet versions of any of the free trade agreements below as well as other negotiations and agreements, visit the Regional and Bilateral Initiatives pages on the FAITC's website.

North American Free Trade Agreement (NAFTA)

For information on the North American Free Trade Agreement (NAFTA):
visit the websites:
The U.S. Customs Service Web site
North American Free Trade Agreement (NAFTA)

Canada-Chile Free Trade Agreement

For information on the Canada-Chile Free Trade Agreement
visit the website:
Tariff Treatment - Country of Origin - Canada-Chile Free Trade Agreement

Canada-Israel Free Trade Agreement

For information on the Canada-Israel Free Trade Agreement
visit the website:
Tariff Treatment - Country of Origin - Canada - Israel Free Trade Agreement.

Canada-Costa Rica Free Trade Agreement

For information on the Canada-Costa Rica Free Trade Agreement
visit the website: Tariff Treatment - Country of Origin - Canada-Costa Rica Free Trade Agreement.

Canada and Trade in Services (Canada's Services Trade Agreements)

Canada has negotiated commitments in the area of services in several international trade agreements. These include the General Agreement on Trade in Services (GATS), the North American Free Trade Agreement NAFTA) and the Canada-Chile Free Trade Agreement (CCFTA). In addition to describing the liberalization commitments that have been made, these agreements usually establish committees or working groups to administer ongoing work related to the implementation of commitments and, in some cases, to continued negotiations.

For further information:
visit the website: Trade in Services

10. Getting Your Product to its Destination

Incoterms

The IncotermsTM of the International Chamber of Commerce (ICC) are internationally accepted commercial trade terms which determine the passing of risk and costs under an international contract of sale. IncotermsTM make trade with foreign nations easier and help traders in different countries understand one another. The terms tell each party to the contract what their obligations are for the carriage of goods from the seller to the buyer, for insurance and for export and import clearances.

For further information:
visit the website:
International Chamber of Commerce (ICC) - Incoterms

Professional Services

When shipping your product to foreign customers, you may wish to use the services of shipping industry professionals such as freight forwarders and customs brokers.

Freight Forwarders

The services of freight forwarders include planning the most economic route for shipment of goods, preparing documents relating to shipment of and payment for goods and providing insurance and customs formalities.

For further information:
visit the website: Canadian International Freight Forwarders Association

Customs Brokers

The services provided by customs brokers include the processing of customs' import and export documentation and the release of commercial goods through local customs authority. The Canadian Society of Customs Brokers Internet site can provide you with a list of customs brokers and equivalent organizations who are familiar with customs procedures in the country of destination.

For further information:
visit the website: Canadian Society of Customs Brokers (CSCB)

11. Export Information and Counselling Services

Canada-Ontario Export Forum (COEF)

The Canada-Ontario Export Forum coordinates the export development services of public and private organizations throughout the province to assist new and experienced exporters.

For further information:
see the document Canada-Ontario Export Forum (COEF)

Department of Foreign Affairs and International Trade's Enquiries Service

The Enquiries Service offers information and reference services to Canadian exporters, to companies interested in international markets and to anyone interested in Canadian foreign policy.

For further information:
please call 613-944-4000 (Ottawa) or 1-800-267-8376 (toll free)
visit the website: International Trade Canada - Enquiries Service (SXCI)

International Trade Canada (ITCan)

ITCan can help direct you to the existing products and services that relate to your particular exporting needs. The Regional Offices of ITCan provide services to Canadian small and medium enterprises (SMEs) that have demonstrated a strong commitment to opening a new export market or further developing an existing one.

Companies looking for general information on export programs and services should first contact the Canada Business at 1-888-745-8888.

For further information:
visit the website: Foreign Affairs and International Trade Canada

Canadian Consular Services

The Canadian Consular Services of Foreign Affairs Canada (FAC) publishes a series of safe travel publications and reports giving practical advice and valuable information on foreign travel as well as a list of Canadian missions world-wide.

For further information:
visit the websites:
Consular Affairs
Consular Affairs Publications
Travel Assistance
Country Travel Reports
Emergencies (FAITC Operations Centre)
Bon Voyage, but...
Canadian Government Offices Abroad

Canadian Trade Commissioner Service

The Canadian Trade Commissioner Service works for Canadian businesses at Canada's embassies, consulates and high commissions. The Trade Commissioner Service helps Canadian companies that have researched and selected their target markets and can demonstrate their commitment to succeed in the global marketplace.

To obtain their services, companies must register with the Virtual Trade Commissioner.

For further information:
visit the websites:
Canadian Trade Commissioner Service (TCS)
Register now for your Virtual Trade Commissioner
see the document Canadian Trade Commissioner Service

Virtual Trade Commissioner (VTC)

The Virtual Trade Commissioner (VTC) is your personal gateway to the Canadian Trade Commissioner Service. The VTC provides access to market information, international business opportunities and much more. To be eligible for registration in the VTC database, your company has to have exported or researched and selected target markets abroad. Registration to the VTC is free.

To register, please visit the Virtual Trade Commissioner website.

International Trade Branch (ITB)

International Trade Branch (ITB) (formerly Ontario Export Inc.) is the lead trade agency of the Government of Ontario. ITB has a team of knowledgeable export professionals who can provide commercial intelligence on foreign markets and guide Ontario suppliers of goods and services in developing their marketing strategies for major markets abroad.

For further information:
visit the website: International Trade Branch (ITB)
see the document Export Consultation and Guidance in Ontario

Agri-Food Trade Service (ATS)

The Agri-Food Trade Service (ATS) is an international business development service. The network covers government services for industry in international business development.

For further information:
visit the website: Agri-Food Trade Service (ATS)
see the document Agri-Food Trade Service (ATS)

Export Marketing Unit

The Export Marketing Unit of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) offers a number of services to new and experienced exporters of food, beverage and agricultural products. These services include counselling, seminars, outgoing and incoming missions, international trade shows, sourcing and market intelligence.

For further information:
please call 1-888-466-2372
visit the website: Marketing, Trade, Foodland Ontario
see the document Ontario Food Exports

Export Controls On-Line (EXCOL)

Export Controls On-Line (EXCOL) is a user friendly web-based application where exporters are able to submit applications for export permits and certificates, as well as request amendments. EXCOL also offers the functionality to submit online, quarterly utilization reports for military goods, as well as the ability to print selected permits in your office.

For further information:
visit the website: Export Controls Online (EXCOL)

Foreign Exchange Facility Guarantee (FXG)

Helps small to medium Canadian exporters manage their contracts negotiated in foreign currencies.

For further information:
visit the websites:
Foreign Exchange Facility Guarantee
Application, Indemnity and Consent - Foreign Exchange Facility Guarantee (FXG)

EDC Security Compliance Loan

Canadian companies may need to enhance their security programs in order to meet the requirements of the Customs-Trade Partnership against Terrorism (C-TPAT). EDC's Security Compliance Loan helps Canadian companies to finance the upgrades required to meet security standards, and helps them qualify to become C-TPAT-compliant. Security enhancements to property, personnel and procedures may be required.

For further information:
visit the website: EDC's Security Compliance Loan

12. Other Resources

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

The main branches of Canadian Chartered Banks have Trade Finance Sections that will provide you with information and advice on their export services. Your local library can also be a valuable resource when conducting international market research.

Related Reading

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.