Exporting Fact Sheet - Know Before you Go - U.S

Summary

Immigration Rules

While Canadian business people may enter the U.S. to attend trade shows, meet with buyers, look for reps and take orders, it is not legal to actually sell your products while you're there. You can take orders while you are in the States, but you cannot accept money in exchange for actual products while there. This is a law of U.S. Immigration and Naturalization - INS (not U.S. Customs) and unknowing Canadians have been shocked to be turned back from the border or in some cases, have even had their products seized as they attempted to pass through Customs and Immigration.

U.S. immigration law under Title 8, Code of Federal Regulations, Part 214.2(b), item (D)(1) admits only "sales representatives and agents taking orders or negotiating contracts for goods or services for an enterprise located in the territory of another Party, but not delivering goods or providing services". Let's dissect this information as it applies to your day at a U.S. retail show. You are the principal of, or partner in, your company; in other words, you are not a sales representative. You are not taking orders or negotiating contract. You are delivering goods. You are breaking the law.

There are only two ways to comply with the Immigration rules if you wish to have your products featured in a trade show. The first is to bring samples only to a show and write orders (which is how most trade shows are conducted), then ship your products when you return to Canada. The second option is to sell your products to an American distributor who will, in turn, resell. The only way you can be exempt from this law is if you hold dual citizenship (U.S. and Canadian) or you can provide proof of "50 per centum or more of the blood of the American Indian race". Though these rules appear strict, remember that the North American Free Trade Agreement (NAFTA) actually favours Canadians, Americans and Mexicans wishing to do business in each others' countries.

If you have any questions relating to the law and how it may affect a special situation, it is best to call U.S. Immigration for clarification. U.S. Immigration at the Alberta international airports are: Edmonton International (780) 890-4489, 10:00 a.m. to 11:30 a.m. and Calgary International (403) 221-1728, 9:30 a.m. to 11:30 a.m.  You can contact U.S. Immigration at Sweetgrass, Montana (406) 335-2911; Portal (701) 926-4111; Pembina (701) 823-6528.  Immigration information on Canada Business Travel to the U.S. can also be found on the Web site: Embassy of the United States of America (http://www.usembassycanada.gov/content/index.asp).  International Trade Canada produces the publication "Cross - Border Movement of Business Persons and the North American Free Trade Agreement" which is available at the following Web site: http://www.dfait.gc.ca/nafta-alena/cross-en.asp or by contacting the Canada-Saskatchewan Business Service Centre  Canada-Saskatchewan Business Service Centre .

Export Tips to Remember

1. If you are traveling on business, phone a U.S. Immigration Officer for advice well in advance of your trip. Documentation, such as copies of contracts or a letter from an American company as to why you are going to the United States, can be very important to U.S. Immigration.
2. Do not deliver product with you when traveling on business into the United States. Product must be shipped separately to be processed by Customs officials. Samples can be a "gray area". Well in advance of traveling, it is best to phone a U.S. Immigration's Officer for advice on transporting samples.
3. Selling services in the U.S. without products or investment is highly controlled. You must contact a U.S. Immigration's Officer for entry advice well in advance of your trip.
4. Do not charge GST to your American accounts! If your computerized billing system automatically adds GST and you can't reprogram your system, cross out the amount of GST and re-calculate the new invoice amount manually.
5. Remind your U.S. customers that the postage amount differs to Canada. You may even want to write or stamp it in color on your invoice. Remind them to check their postal service for rates.
6. Shipments to the U.S. require the buyer's federal tax ID number. Should your buyer not have one, you'll need their IRS number. If your customer is reluctant to provide this information, simply explain that it's a rule of the U.S. (not Canadian) government for all direct imports. Then be sure to keep it on file so you'll never need to request it again!

Helpful websites:

Canadian Business Travel to the U.S. U.S. Consular Services: Canadian Citizens Canadian Business Travel to the U.S. (http://www.usembassycanada.gov/content/content.asp?section=travel&subsection1;=visaservices&document;=canbustravel)   

U.S. Immigration  Inspections (http://uscis.gov/graphics/shared/lawenfor/bmgmt/inspect/index.htm)

Ports Of Entry (http://www.customs.ustreas.gov/xp/cgov/toolbox/ports)

Further information regarding exporting, see the document  Exporting Info-Guide, visit the Trade and Export section on our Web site  Canada-Saskatchewan Business Service Centre  or contact the

Canada-Saskatchewan Business Service Centre
#2 - 345 3rd Avenue South
Saskatoon, Saskatchewan
S7K 1M6
Phone:  (306) 956-2323
Toll-Free: 1-800-667-4374
E-mail:   saskatchewan@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/sask

Prepared by: The Business Link Business Service Centre