Exporting - Entering World Markets Info-Guide

This guide will help navigate through the federal and provincial government resources that would be of interest to businesses starting to export globally.

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.

There are a number of reasons to consider exporting:

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

ExportSource

This on-line service provides a one-stop shop for new and experienced exporters, with access to multiple sources of export-related information from over 800 government and private links.

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

Support to the Export Industry

CMHC International promotes the export of Canada housing products and expertise.

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

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 the Regional Access Program Locations page

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 sectorial 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 web site: Market Reports and Services

InfoExport

InfoExport is the web site 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 web site:  Canadian Trade Commissioner Service (TCS)    

TradeMap Canada  

TradeMap Canada is an innovative tool created by the International Trade Centre - UNCTAD/WTO in Geneva to help you to easily access key international trade data. This tool is provided free of charge to Canadians through a registration on Exportsource.ca.

To access TradeMap Canada, you will need a user name and password, which can be obtained by filling in the form on the  ExportSource.ca   web site. 

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

For further information:
see the document TradeMap Canada

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 web site : Canadian Industry Statistics
see the document Canadian Industry Statistics

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:
visit the web site: Developing Your Export Plan

Export Diagnostic

The Export Diagnostic is an online tool that helps businesses assess their export readiness and identify priorities as they prepare to enter foreign markets. For businesses that are currently exporting, the tool may help in fine-tuning export strategies.

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 web site: EXPORT Able? - EDC

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!

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 web site: FITT
see the document FITT (Forum for International Trade Training).

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

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 web site: Export Services
see the document PROFIT Food Export Seminar

Export Seminars and Workshops

Ontario Trade Days 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..

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 web site: Export Development Canada
see the document 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:
see the document Accounts Receivable Insurance.

Export Express Credit

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

For further information:
visit the web site: Export Express Credit
see the document Export Express Credit

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 web site: Single Buyer Insurance
see the document 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 web site: 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 web site:  Export Finance Guide
see the document 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 web site: Canadian Commercial Corporation  

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:
see the document 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 web site: IFInet
see the document IFInet - Projects in International Development

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 web site: Canadian International Development Agency  

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 web site: Canadian Customs Regulations 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 - 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 web site: Border Information Service
see the document Border Information Service - BIS

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 web sites:
Export Registration/CAED Canadian Automated Export Declaration
B13A Export Declaration  
see these documents:
Reporting of Exports
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

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 Affaires 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 web sites:
Export and Import Controls Bureau   
Export and Import Controls Bureau - Notices  
see the document Export Permits

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

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 web site: Duty Drawback Program
see the document Duty Deferral Program - Duty Drawback -- Exported Goods

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. Relief of the GST is also available, under certain circumstances.

For further information:
visit the web site: Duty Deferral Program
see the document Duty Deferral Program - Duties Relief

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.

For further information:
visit the web site: Customs Bonded Warehouse Program D7-4-4
see the document  Customs Bonded Warehouse Program

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 web site: Temporary exportation programs
see the document Temporary Importation/Exportation Programs

8. Foreign Regulations

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 these web sites:
ExportSource.ca  
Worldwide Business Briefings
Foreign Representatives in Canada
see the document: Multilateral Market Access (TMA)

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!

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 web site: Trade Negotiations and Agreements (TNA)
see the document 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.

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

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

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

For information on the Canada-Costa Rica Free Trade Agreement
see the document Tariff Treatment - Country of Origin - Canada-Costa Rica Free Trade Agreement.

To access Internet versions of any of the above free trade agreements, visit the  Regional and Bilateral Initiatives  pages on the FAITC's web site

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 web site: Trade in Services

10. Getting Your Product to its Destination

The Incoterms^TM 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. Incoterms^TM 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 these web sites:
Canada-Saskatchewan Business Service Centre
Glossary of International Trade Terms

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. 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 web site: Canadian International Freight Forwarders Association

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 web site: 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 web site: International Trade Canada - Enquiries Service (SXCI)
see the document Enquiries Service of Foreign Affairs and International Trade Canada

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 ExportSource.ca at 1-888-576-4444.

For further information:
visit the web site: 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 web site: Travel Assistance
see the document Canadian Consular Services 

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 web site:  Canadian Trade Commissioner Service (TCS)   
see the document Canadian Trade Commissioner Service (TCS)  

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 web site.

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 web site: International Trade Branch (ITB)
see the document International Trade Branch

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 web site: 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 web site: Marketing, Trade, Foodland Ontario
see the document Ontario Food Exports  

International Business Opportunities Centre (IBOC)

The International Business Opportunities Centre (IBOC) matches business leads identified by Canadian Trade Commissioners abroad with the interests of capable Canadian firms, particularly small and medium enterprises. Companies who register in the Virtual Trade Commissioner  and the Canadian Company Capabilities (see the document Canadian Company Capabilities) databases position themselves to benefit from international business opportunities.

For further information:
visit the web site: International Business Opportunities Centre
see the document International Business Opportunities Centre (IBOC)

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)

Foreign Exchange Facility Guarantee (FXG)

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

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

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.

• Canadian Manufacturers and Exporters
   
• Canadian Boards of Trade and Chambers of Commerce
   
• Ontario Chamber of Commerce
   
• Chambre économique de l'Ontario
  (services are offered to both French and English exporters, but site is in French only);
   
• Municipal Boards of Trade and Chambers of Commerce;
  (vist the web site:  World Chambers Network )
   
• Canadian Council for International Business
   
• 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)  Sources of Export Information  ).
  

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.

Need more information?

Click: Canada-Ontario Business Service Centre
Call: 1-800-567-2345
Visit: our  Regional Access Program Locations page 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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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.