Exporting - Preparing for World Markets Info-Guide

TABLE OF CONTENTS

1. Thinking About Exporting
2. Helping Exporters Get Started
3. Export Guides and Tools
4. Market Research - Picking Your Target Market
5. Export Training
6. Regulations
7. Export Financing
8. Sources of Export Assistance

1. Thinking About Exporting?

Exporting presents opportunities and challenges. The global marketplace is increasingly seen as having greater opportunities for Canadian entrepreneurs wishing to look beyond domestic sales and begin to promote and sell their products and services in other countries. The challenges involved can be overcome with proper preparation and planning.

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

2. Helping Exporters Get Started

ExportSource
ExportSource, Canada's most comprehensive online source of export information is a "must" for exporters. It offers information on everything from foreign markets, trade statistics and export financing to the logistics of delivery, trade shows, export missions and sources of assistance.

For further information:
please call 1-888-576-4444
visit the web site: Exportsource.ca
see the document  ExportSource.ca

COBSC Regional Access Sites

COBSC 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 our  Regional Access Program Locations web site  

International Trade Canada's Enquiries Services

Through the International Trade Canada (ITCan)'s Enquiries Services, callers can request general information and publications on trade, foreign policy and consular services.

For further information:
please call (613) 944-4000 or 1-800-267-8376
visit the web site: International Trade Canada
see the document Enquiries Service of Foreign Affairs and International Trade Canada

3. Export Guides and Tools

Step-by-Step Guide to Exporting

The Step-by-Step Guide to Exporting is designed to give you an understanding of the exporting process and to provide you with solid and practical information on how to assess your export capabilities. It also steers you through the process of planning and executing your first exporting venture and is available online or in print format by calling Canada Business at 1-888-576-4444.

For further information:
visit the web site: Step-by-Step Guide to Exporting
see the document Step-by-Step Guide to Exporting

Roadmap to Exporting

The Roadmap to Exporting is a tool designed to help exporters, in all stages of development, to locate the best sources of export services and is available online or in print format by calling Canada Business at 1-888-576-4444.

For further information:
visit the web site: Roadmap to Exporting
see the document Roadmap to Exporting

Getting Ready To Export

Getting Ready To Export has been designed to introduce Ontario firms to the fundamentals of export success and the resources available to those firms entering foreign markets. It is available online or in print format by calling Canada Business at 1-888-576-4444.

For further information:
visit the web site: International Trade Branch (ITB)

CanadExport

CanadExport is Canada's official source of news and advice on trade, export and investment opportunities around the world, for entrepreneurs who want to compete, partner and prosper in the global marketplace. All interested exporters and business-oriented people can subscribe.

For further information:
please call (613) 996-2225
visit the web site: CanadExport
see the document CanadExport

Support to the Export Industry

CMHC International assists exporters in expanding their business internationally by helping them to identify new housing export opportunities in select high potential markets. CMHC provides promotional support, organizes trade missions, provides matchmaking services, and promotes Canadian know-how abroad. In turn, facilitating export contracts that create jobs contributes to the well being of the Canadian economy.

For further information:
visit the web site: CMHC International - Support to the Export Industry

Diagnostic Tools

The first step in the decision to export your product or service is to assess your ability to export. There are several online diagnostic tools available to "new to exporting" businesses that help determine export readiness:

The Export Diagnostic

The Export Diagnostic will give you an opportunity to test your export readiness and identify priorities as you prepare for a foreign market.

For further information:
visit the web site: Export Diagnostic
see the document Export Diagnostic

Export Your Services...Take a World View!

Export Your Services...Take a World View! is an export preparation and information tool designed to assist service exporters become export-ready.

For further information:
visit the web site: Export Your Services...Take a World View!
see the document Export Your Services...Take a World View!

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
visit the web site: EXPORT Able? - EDC

4. Market Research - Picking Your Target Market

Effective market research is an essential aspect of the process of export business planning. It is vitally important that businesses obtain accurate, specific and thorough information about the markets and customers they wish to target in order to develop an effective marketing plan and lay the groundwork necessary for financial success.

Exporters should assess their target market by seeking information on that country's business practices and customs, and by collecting statistical data on trade activities involving their product/service in the selected country. Information on the chosen market's infrastructure, economic situation, political environment and credit standing are important. Exporters want to ensure that their goods successfully get to the market and that the risks associated with payment are identified and minimized.

Demographic data such as size of country, size and distribution of population, average income, attitude of consumers towards foreign products or services are as important in international research as they are in domestic market research. What is the sales potential of an exporter's product or service? Who are the domestic competitors? The foreign? What trends are emerging vis a vis a particular product or service's sales volume, acceptance, value?

Once these issues have been addressed, it is also important to focus on the information accumulated, which will aid in making informed decisions regarding pricing and the promotion and/or selling of the product or service in question.

For further information:
see these documents:
Guide to Market Research and Analysis
Marketing Plan Outline

Following your decision to proceed in exporting your products or services, you need to identify potential export markets. Research on the most promising countries includes, but is not limited to:

• demographics;
• economic profiles;
• geography;
• political and legal aspects;
• trade practices and customs;
• literacy rates;
• culture and consumer patterns;
• attitudes toward foreign businesses;
• climate/weather conditions;
• transportation and communication systems;
• risk assessment;
• currency/inflation rates;
• intellectual property protection.
  

Strategis is the largest business information web site in Canada. Within Strategis, Canadian businesses have access to a vast array of management resources, perspectives and data that can help them further develop and expand their markets, create alliances and find new clients. The Trade and Investment section contains useful resources for the exporter.

For further information:
visit these web sites:
Trade, Investment and Services
Market Research

Foreign Affairs and International Trade Canada web site offers valuable information on countries and regions to exporters.

For further information:
visit the web site: Countries and Regions   (FAITC)

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

For further information:
visit the web site: Businesswomen in Trade
see the document Businesswomen in Trade

Country Insights provides free access to invaluable information on the countries and cultures of the world.

For further information:
visit the web site: Country Insights

Citizenship and Immigration Canada's Cultural Profiles Project provides an overview of life and customs in the profiled country.

For further information:
visit the web site: Cultural Profiles Project  

EDC's Country Information monitors political and economic developments in a variety of countries around the world.

For further information:
visit the web site: Country Information  

Canadian Company Capabilities is an online database which profiles thousands of Canadian companies. It offers free registration and company information is available globally. This database contains vital company information that can be searched to locate Canadian suppliers and distribution channels, to determine competition, to form partnerships and to uncover export opportunities.

For further information:
visit the web site: Canadian Company Capabilities
see the document Canadian Company Capabilities

Exporters of food products may wish to visit the Agri-Food Trade Service (ATS) online. This service provides access to international trade and market information for Canadian agri-food exporters. 

For further information:
please call 1-888-576-4444
visit the web site: Agri-Food Trade Service

Taking On the World! highlights Canada's national priority sectors for trade development. This area gives an overview of Canada's position in various sectors in terms of the international environment, business opportunities, market outlook, and priority markets.

For further information:
visit the web site:   Taking On the World!

Statistics Canada collects and distributes a wide range of statistical information on exporting based on Canada Border Services Agency (CBSA) data. Statistics Canada maintains detailed trade data for anyone whose business depends on importing or exporting (costs are applicable).

For further information:
visit the web site: Statistics Canada
see the document Trade Data and Statistics

Trade Data Online provides detailed information on Canadian and U.S. imports, exports and trade balances in terms of dollars or percentages. It targets over 200 countries. The data is obtained from Statistics Canada and the U.S. Census Bureau.

For further information:
visit the web site: Trade Data Online
see the document Trade Data Online

Worldwide Governments on the WWW

This site leads to the official government web sites for most countries in the world including ministries, offices, law courts, embassies, parliaments, city councils, public broadcasting corporations, central banks, and multi-governmental institutions around the world. This site contains more than 15,000 entries from more than 220 countries and territories. The information listed may be limited for countries which have a lower level of Internet presence. Some content may be presented in the language of the originating country, and in some cases, may contain a political slant.

For further information:
visit the web site: Worldwide Governments on the WWW

CIA World Factbook web site, prepared by the Central Intelligence Agency (CIA), provides basic intelligence on countries and issues. Country profiles highlight the country's background, geography, people, government, economy, communications, transportation, military and transnational issues.

For further information:
visit the web site: CIA World Factbook

GlobeEDGE is an excellent web-portal which offers a wealth of country information.

For further information:
visit the web site: GlobalEDGE

5. Export Training

The Forum for International Trade Training (FITT) provides interested exporters with the training and skills necessary to compete in international markets:

• FITTskills is a comprehensive package of courses consisting of eight individual modules focusing on the day-to-day mechanics of international business, including entrepreneurship, marketing, finance, logistics, market entry and distribution, research, legal aspects and trade management. This program is available online or in classrooms at institutions across Canada.
  
• Going Global Workshop Series This FITT workshop series is designed to help you make that crucial exporting decision and get you off to a good start on your journey towards foreign markets. The three-hour workshops in the series include: Introduction to International Trade, Introduction to Market Research, Introduction to International Marketing, Introduction to International Finance, Introduction to International Trade Logistics & Distribution.
  
• Enterprise FITT is international trade training, individually tailored to meet the unique requirements of a business or organization. Learning objectives are defined with the client, based upon a careful needs analysis. Training can be delivered on or off-site through practical exercises and scenarios, presentations, workshops, or any mixture of approaches that best suit the learning style of the organization.
  
• Certified International Trade Professional (C.I.T.P.): FITT is the only organization in Canada to award the C.I.T.P. designation - the Canadian credential of excellence in international trade.  As a C.I.T.P. you have met rigorous requirements in education, training and experience. You have made a commitment to adhere to the Standards of Ethical Conduct, and today, across Canada C.I.T.P.s are bringing a new level of accountability and increased recognition to the profession of international business and trade.

For further information:
visit these web sites:
Forum for International Trade Training - FITT Inc.  
FITTskills ONLINE SCHEDULE
see the document FITT (Forum for International Trade Training)

ExportUSA is a group of programs that can assist exporters in developing or expanding their access to the U.S. market by giving them first-hand exposure to target markets.

• New Exporters to Border States Program (NEBS), focuses on export education. It introduces companies to the essentials of exporting and provides practical export information and first-hand exposure to markets in the United States.
  
• Exporters to the United States program (EXTUS) is a program similar to NEBS that serves Canadian companies already exporting to the U.S. border states. EXTUS focuses on expanding the markets of successful Canadian exporters to other regions of the United States.
  
• Reverse NEBS program serves Canadian companies not yet exporting to the United States by providing informative seminars in Canada on the essentials of exporting.

For further information:
visit these web sites:
ExportUSA: Programs for Canadian-Based Exporters to the U.S.
Export USA Calendar
see the document ExportUSA

Seminars and Workshops are 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. General export seminar topics covered are: Export Financing, E-Commerce, E-Business, Internet Exposure Benefits, and Managing Export Growth.

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

Note: Many community colleges and some boards of education offer courses in international marketing and import/export methods. Several universities operate Centres for International Business Studies or international business oriented MBA programs. Industry and trade associations also offer various seminars on trade. Visit the Association of Universities and Colleges of Canada (AUCC) to search through a comprehensive list of international programs offered by some Canadian universities and colleges.

6. Regulations

There are various regulations that apply to exporting Canadian goods to other regions of the world. The Canada Border Services Agency's (CBSA) publication Exporting Goods from Canada provides an overview of the rules involved in exporting a product. This publication is available on the Internet.

For further information:
visit the web site:  RC4116 Exporting Goods from Canada - A Handy Customs Guide for Exporters

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 web site: Registering Your Business
see the document Importer/Exporter Account Number

Border Information Service is a computerized, 24-hour telephone service that provides information on various customs topics such as personal and commercial importations and exportations, travellers' exemptions, currency exchange rates, commercial as well as personal postal information, and trade agreements. Border Information Service is available free of charge throughout Canada by calling 1-800-461-9999 .

For further information:
visit the web site: Border Information Service
see the document Border Information Service - BIS

The Customs Client Services provide a wide variety of trade and customs related information that businesses and the traveling public may find useful. If you require personal assistance, contact the Customs Client Services Office closest to you. A listing of these offices is available from your local CBSC.

For further information:
vist the web site: Customs offices  
see the document Customs Offices - Supplement

Reporting 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) is a software application that has been jointly developed by CRA and Statistics Canada. 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 Federal Government of Canada via the Internet. For more information on the CAED, please visit the  Export Registration/CAED Canadian Automated Export Declaration  page on the Statistics Canada web site. Exporters who do not use the CAED must report their exports by completing form B13A Export Declaration.

For further information on reporting exports, see the document Reporting of Exports or contact your nearest CBSA Trade Administration Services Office (listed in the document Customs Offices - Supplement).

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 web site: Customs D Memoranda
see the document:
Requirements for Imports and Exports of Prohibited and Controlled Goods - Other Federal Government Departments

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 Border Information Service . The Export and Import Controls Bureau of International Trade Canada (ITCan) 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 web site: Export and Import Controls Bureau  
see the document Export Permits

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 web site to subscribe to  Export Alert! .

Please visit SCC's web site for more information on  RegWatch .

Please visit the Standards Council's web site to subscribe to  Standards Alert! .

Also, exporters need to identify tariff and non-tariff barriers to 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?

The International Trade Canada (ITCan) through its Tariffs and Market Access Information 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 web site: Trade Negotiations and Agreements (TNA)
see the document Multilateral Market Access (TMA)

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 web site: Canadian Heritage - Exporting Cultural Property from Canada

7. Export Financing

Export Development Canada (EDC)

Export Development Canada (EDC) offers a range of risk reduction financial products and services, to small exporters interested in export receivables insurance and export financing support. EDC also provides 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. Exporters interested in EDC programs and services may call toll-free 1-866-283-2957 from Monday to Friday during regular business hours, from wherever the call is being made in Canada.

For further information:
visit the web site: Export Development Canada (EDC)
see these documents:
Accounts Receivable Insurance
Working Capital Solutions

EXPORT Finance Guide

EDC has developed a guide to help exporters understand and access export-related financing services online. This tool will help you determine what kind of financing you need, and where to find it.

For further information:
visit the web site:  EXPORT Finance Guide
see the document: EXPORT Finance Guide

The Canadian Commercial Corporation (CCC) is an export sales agency of the Government of Canada which brings buyers and Canadian exporters together through contracts built on the best possible terms and conditions.

For further information:
visit the web site: Canadian Commercial Corporation (CCC)

The Export Financing Guide
This guide is a great introduction to export financing. Its purpose is to help Canadian entrepreneurs and SME's understand and access export finance.

For further information:
visit the web site:  Guide for Canadian Exporters  

8. Sources of Export Assistance

The Canada-Ontario Export Forum (COEF) is your first stop en route to the information, counselling, market intelligence, financial assistance and on the ground support you need to make your export venture a successful one.

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

International Trade Branch ( formerly Ontario Exports Inc.), the lead trade agency of the Ontario Government, can assist Ontario firms become new exporters or expand into new markets.

For further information:
visit the web site:  International Trade Branch (ITB)
see the document International Trade Branch

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

The Export Marketing Unit of the 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. The Ministry of Agriculture, Food and Rural Affairs web site contains a lot of information on food safety, including information on the Food Safety and Quality Act.

For further information:
please call 1-888-466-2372
visit the web site: Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)

The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) administer the PROFIT Food Export Seminar, a two-day seminar that addresses the basics of exporting to the U.S. market.

For further information:
visit the web site: Export Services
see the document PROFIT Food Export Seminar

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 web site: Export Controls Online (EXCOL)
see the document  Export Controls Online (EXCOL)

EDC's Foreign Exchange Facility Guarantee (FXG) helps free up working capital for Canadian companies that purchase forward contracts from their financial institutions, enabling them to lock in the exchange rates as protection against foreign currency fluctuations.

For further information:
see the document Foreign Exchange Facility Guarantee

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:
see the document Security Compliance Loan

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
  
• the  Chambre économique de l'Ontario (services are offered to both French and English exporters but site is in French only)
  
• the  Canadian Council for International Business
  
• Municipal Boards of Trade and Chambers of Commerce
  vist the web site:  World Chambers Network
  
• most local Economic Development Offices
  
• numerous industry associations
  
• international business councils (e.g. Canada-Japan Trade Council, Canada-India Business Council, Canada India Business (exportsource.ca) ).

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 doing your market research.

Need more information?

Click: Canada-Ontario Business Service Centre
Call: 1-800-567-2345
Visit: our  Regional Access Program Locations web site to locate an office near you.

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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.

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• Exporting to the United States Info-Guide
• Exporting - Entering World Markets Info-Guide
• Business Guides

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

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.