Export FAQ

For the new exporter, getting your product into a foreign market is a complicated and costly endeavour. There is paperwork to complete to get through customs, duties and tariffs to be paid, international laws to adhere to, packaging requirements, and specifications for marking and labelling...every country has different requirements. Then there are transportation logistics and costs, stable and unstable currencies, fluctuating exchange rates, and various levels of political risk. Of course, each country you are looking at has it's own business culture which may require specialized marketing. This can include translation costs, changing colors or words on your marketing materials that may be deemed offensive or unfavourable in a certain country, advertising that doesn't work because people in certain countries read pictures from right to left rather than left to right, and the list goes on. The bottom line? Unless you have a small fortune at your disposal, don't try to export everywhere. Target a few countries...do your research to determine which could potentially be the most lucrative...and pick one. If you are going to export to the United States, we often suggest you target one section of the country such as the Northern states. Remember, you can always export to other countries at a later date.

The simplest way to find the answers you need is to divide this question into two distinct areas: starting a business and exporting.

To begin, we've compiled a checklist for new business that guides you through all the steps you need to take in order to start a business in Manitoba.

For the export aspect, be prepared to do a lot of research. The first and most important step in your research is to decide what product or service you want to export, and secondly, to which country. You may initially select two or three countries to research, but in the end select one to target. You can always explore additional markets at a later date. Here are the main steps to exporting:

Goods leaving Canada must be accompanied by certain documents to satisfy Canadian export regulations and to meet the import regulations of the foreign country where the goods are destined. If the goods are controlled or regulated, additional documents such as an export permit, certificate or license will also be required.

All regular goods (i.e., not controlled, prohibited, or regulated) for export valued at CAN $2,000 or more with a final destination to a country other than the United States, Puerto Rico, or the U.S. Virgin Islands must be accompanied by form B13A Export Declaration . If the goods are controlled or regulated, you will need to submit your permit, certificate or license along with form B13A regardless of the value of the goods.

All regular goods (i.e. those not controlled, prohibited, or regulated) for export with a final destination to the United States, Puerto Rico or the U.S. Virgin Islands do not require form B13A due to trade agreements. If the goods are controlled or regulated, you will need to submit your permit, certificate or license regardless of the value of the goods.

For more information on documentation consult the publication Exporting Goods from Canada - A Handy Customs Guide for Exporters.

Export Permits are required for goods on the Export Control List as well as the Area Control List. Also check for other controlled and regulated goods. The Strategis web site lists countries and their trade regulations which includes documentation that is required to accompany the goods when they enter the foreign market.

If you are exporting sensitive or strategically controlled goods such as those found on the Export Control List, or you are shipping to a country on Canada's Area Control List, read more on the SERVE Industrial Awareness Program .

I am planning to export my products to (country name). What paperwork is required and what duties/tariffs will I need to pay?

The paperwork you need to complete will vary from country to country and will depend, in part, on what product you are exporting. Most countries will require that a bill of lading and customs verification papers accompany the shipment. Permits and licenses will vary but may include commercial invoices, consular invoices, certificates of origin, import licenses, inspection certificates, and dock and insurance receipts. If you are unsure as to what paperwork you require, you can research your target market using the Canadian Trade Commissioner Service's Market Reports. For more information, you may also contact foreign diplomatic and consular representatives in Canada who can provide details on how to export your product into their country.

Canada is a signatory to certain international trade agreements and is a member of various trade organizations. Due to these trade alliances, duties and tariffs applied to Canadian companies exporting to member countries may be low or non-existent.

To help you sort through these details, you may wish to retain the services of a freight forwarder and/or customs broker. Freight forwarders can guide you through the extensive paperwork involved in international trade and help improve delivery times by coordinating the transport of your goods. A freight forwarder can also help clarify conditions on the letter of credit and ensure they are met. Custom brokers will clear the goods through customs by preparing all necessary documentation and remitting any duties owed on exported goods. They are also kept informed of the latest tariff changes and other customs-related developments which could affect your venture.

How do I protect myself and ensure I get paid when exporting goods to another country?

The most common method used for international payments is the letter of credit. It is also referred to as L/C or a documentary credit. The letter of credit is issued by the importer's bank and guarantees payment to the exporter upon each party meeting certain terms and conditions which they have agreed to ahead of time and have incorporated into the letter of credit. This is a very simple description of a complex document. For more information, contact the international banking division of your financial institution.

Another way to ensure you receive payment is through one of the Export Development Canada (EDC) insurance programs .

I will be going to the U.S. to do work on behalf of my company. What do I need to be aware of?

Chapter 16 of the North American Free Trade Agreement (NAFTA) provides for the cross-border movement of business people who are citizens of Canada, Mexico and the United States. When going to the U.S. from Canada to work on behalf of your company, generally no employment authorization is needed if you are going to perform after-sales maintenance, provide after-sales service, or offer training services. Temporary entry into the U.S. will be granted upon presentation of proof of citizenship and documentation indicating the purpose of the visit and evidence demonstrating the proposed business activity is international in scope and that you are not seeking to enter the local labor market. Further details can be found on the Foreign Affairs and International Trade web site .

I want to go to the U.S. with my products and sell them directly to customers. What do I need to do?

Whenever you bring goods into the U.S. you must determine ahead of time if the goods are controlled and whether or not you will need to obtain licenses and/or permits. If you do try to bring products into the U.S. from Canada for direct sales, you may be denied entry under Chapter 16 of the North American Free Trade Agreement (NAFTA). However, you can apply for a Carnet which is a customs document that allows temporary, duty-free admission of commercial samples, professional equipment, and goods used for demonstrative purposes at trade shows, exhibitions, etc. You may then take orders for your product and have it shipped directly to the consumer. A Carnet can also be used in approximately 88 countries which are signatories to a series of Customs Conventions. Disposable items and consumable products such as food are not covered by a Carnet. For detailed information as well as instructions on how to apply for a Carnet , visit the Canadian Chamber of Commerce web site.

Export FAQs

Discover the answers to some of the most commonly asked questions about exporting your goods and services from Canada.