Frequently Asked Questions

 

Exporting

Importing

Market Research

Trade Terms

Financing

Exporting

Q. What exactly does export mean?

Export is the movement of goods or selling services out of a country or settlement. Export goods or services are provided to foreign countries by domestic producers.


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Q. What does it mean to be ‘Export Ready’?

To be ‘Export Ready’ means that a company has the character and the capacity to start in this field of business.


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Q. How do I know that I am ‘Export ready’?

 To be ‘Export Ready’ you have to:

  • develop an Export Strategy
  • determining your products’ export potential, developing an export plan, assessing your export readiness
  • develop a marketing plan (market research)
  • have knowledge of the different markets and the end-user and their culture
  •  know where you can get information
  • know your sales methods and channels
  • establish relationship with service providers and export assistance providers
  • prepare your products or services for export
  • know how to ship your goods
  • know your prices, quotations and terms
  • know the different methods of payment
  •  know the different possibilities of financing

  • think about an after sales service

 


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Q. Where can I get information if I seek to export goods and services to foreign markets?

The TradeStart website provides the export community with a single point of access to the broad range of government export service providers.


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Q. Do I need a Business Number (BN) if I want start exporting?

All Canadian individuals or businesses importing or exporting on a commercial basis must get a Revenue Canada Business Number (BN) in order to account for their goods.


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Q. Why should I have an Importer/Exporter Account Number?

This number identifies clients that transact business with the Canada Border Services Agency (CBSA). These clients are involved in import/export activities. http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/ndn/mprtxprt-eng.html

 


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Q. Where can I get information about international importers?

The International Directory of Importers features extensive classified listings of worldwide importing firms and detailed information on each of them. This directory is one of a nine volume series, it covers a specific geographical region. It features extensive classified listings of worldwide importing firms, as well as a company section containing detailed information on each importer. Useful for export sales promotional activity, searching for prospective distributors and agents, compilation of mailing lists, locating imports of a particular product, verification of company data etc.
You can find a printed copy to be reviewed on site, at the Small Business BC Research Library.


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Q. What is a useful guide to government services?

 The Roadmap to Exporting offering insight into three stages of export preparedness, including: Considering Export Markets, Committing to the Development of Export Markets and Growing in the Export Market and also export related government contacts and services.
Ask for a copy through DFAIT: By calling their toll-free number: 1-800-267-8376.
You can also find a printed copy to be reviewed on site, at the Small Business BC Research Library.
 


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Q. Which magazines are interesting for an exporter?

CanadExport, the DFAIT newsletter, is published twice monthly in print format and also available electronically. http://www.dfait-maeci.gc.ca/canadexport/index.aspx

Export Wise, published by the Export Development Canada, covers events and issues related to the Canadian export industry. http://www.edc.ca/english/publications_export_wise.htm


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Q. To which agency do I have to send the reporting of exports?

All export transactions must be reported to the Canada Border Services Agency.
http://www.cbsa.gc.ca/export/reporting-declaration-eng.html


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Q. What forms and documents do I have to fill out when I export?

Canada Border Services Agency Exporting and Importing explains exporting and importing paperwork
http://www.cbsa-asfc.gc.ca/export/ed-de-eng.html

 


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Q. What are the different possibilities to write a report of exports?

Canada Border Services Agency Exporting and Importing explains exporting and importing paperwork.
You can download the B13A (Export Declaration) form at http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/b13a.pdf or you can use the CAED (Canadian Automated Export Declaration) which is an electronic method for reporting exports. Information and demonstration of the CAED at http://www.statcan.gc.ca/exp/download-telecharger-eng.htm (software)


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Q. Which information have to keep in Exporters’ and Producers’ Records?

Exports under NAFTA must keep records for a specified time and at a specified location as set out in regulations under the Customs Act.


http://www.cbsa.gc.ca/export/menu-eng.html


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Q. How many different types of Export Permits exist?

There are two different types of Export Permits: a General Export Permit (GEP) and an Individual Export Permit (IEP).The GEP is a valid export permit which allows the exporters to export certain goods. The exporters do not have to apply for an individual export permit for each shipment of goods. The IEP must be obtained when a GEP cannot be used and an export permit is required.


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Q. What is the ECL (Export Control List)?

These are goods which need export permits required for all destinations, except the U.S., together with detailed instructions and related policy and procedure. The goods are divided into different groups.


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Q. How long do I have to keep records and books?

Books, records, including any written report or copy of export permits must be kept 6 years in Canada.


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Q. Which publications can help me to start as an exporter?

At Small Business BC Library you can find various useful publications, such as:

  • "Taking Your Business Global”
  • “Exporting from Canada”
  • “Export Manager: Guide to Export Marketing and Management”
  • “Export Finance: A Guide for Canadian Managers” 
  • “Canadian Export Guide”

Also visit the Small Business BC Research Library to find out about new titles in Exporting, using the Keyword “export” http://www.smallbusinessbc.ca/bizResources-library.php

 


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Importing

Q. Where can I get information about companies importing into Canada and Canadian Importers?

Canadian Importers Database presents a list of companies importing into Canada.
The International Directory of Importers features listings of worldwide importing firms.
Canadian Association of Importers and Exporters Directory represents the total membership of the Canadian Importers Association Inc. (publisher: Naylor Communications Ltd)
Trade Directories of the World guides to more than 3,000 directories related to trade, industry
(publisher: World Trade Press)
Dictionary of International Trade is a dictionary with more than 4,000 international trade, bank, legal and shipping terms.
How to Conquer the World is a dictionary of more than 8,000 international business resources on the internet (publisher: Government institutes).
http://strategis.ic.gc.ca?sc_mrkti/cid/engdoc/index/html
http://www.export-leads.com
 


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Q. Do I need a Business Number if I am interested in importing?

All Canadian individuals or businesses importing or exporting on a commercial basis must get a Revenue Canada Business Number (BN) in order to account for their goods.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/menu-eng.html


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Q. Which statistics are interesting for an importer?

Trade Data Online shows Canadian and U.S. trade statistics by commodity industry and geographical location. http://strategis.ic.gc.ca/tdo
Average Household Expenditures shows what the average household spent each year. http://
BC Stats: Neighbour Income and Demographics shows the number of males who earn more than $ 100,000 in your neighbourhood. http://www.bcstats.gov.bc.ca/data/dd/income.htm
http://www.statscan.ca
 www40.statcan.ca/cbin/s234a.cgi?se=average%20household%20expenditures&lan=eng&dtype=fina


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Q. When do I need Customs Brokers?

The Importer can authorize the broker to conduct business. Customs Brokers licensed by the Canada customs and Revenue Agency may, on a commercial basis, account for goods and pay duties and taxes on behalf of the importer, under section 32 of the Customs Act.
 


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Q. What forms and documents do I have to fill out when I import?

Canada Border Services Agency Exporting and Importing explains exporting and importing paperwork
http://www.cbsa-asfc.gc.ca/import/menu-eng.html


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Q. Do I need an import permit?

Each shipment of controlled products (agriculture products, steel, weapons and munitions) requires an import permit by the Canada Border Services Agency upon entry to Canada.
http://www.international.gc.ca/controls-controles/about-a_propos/impor/permits-licences.aspx?menu_id=8&menu=R


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Q. What are Custom’s Documents?

Custom’s Documents are any group of documents required by the CBSA and other Government Departments (OGD) to accurately and completely identify goods that are being imported.


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Q. What documents are necessary before a product is imported into Canada?

  • Bill of Landing
  • Packing List
  • Commercial Invoice
  • Canada Customs Invoice
  • Certificates of origin

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Q. What is the Commercial Invoice?

The Commercial Invoice is the basic document from which you pay the vendor or exporter.


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Q. What is the Canada Customs Invoice?

Canada Customs Invoice or Commercial Invoice is a document that includes the names and addresses of the exporter and importer, a description of goods, shipping date, reference numbers, country of origin etc.
 


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Q. What are CADEX and CUSDEC?

The Customs Automated Data Exchange (CADEX) and Customs Declaration (CUSDEC) are electronic data interchange (EDI) systems offered by the Canada Border Services Agency (CBSA), allowing importers and brokers to file customs accounting documents electronically.
http://www.cbsa-asfc.gc.ca/eservices/procedure-eng.html


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Q. I want to import vehicles from the U.S., who can help me with it?

The Registrar of Imported Vehicles provides a simple of the steps you must follow if you want to import vehicles from the U.S. http://www.riv.ca
The Association of International Automobile Manufacturers of Canada will also help you. http://www.aiamc.com


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Q. Which publications give me information about starting as an importer?

  • Building an Import/Export Business
  • Import Canada: A Step by Step Guide How to Start an Import Business
  • (publisher: Canadian Association of Importers and Exporters Inc.)
  • Import/Export – How to get started in international trade
  • Introduction to Import Marketing
  • Start your own Import/Export Business
  • Cross Border Movement of Business People and the NAFTA (dfait)
  • Basics of Import/Export
  • Import/Export – A Guide to Growth, Profits and Market Share
  • Import/Export Business
  • Kiss, Bow or Shake Hands: How to do Business in 60 countries

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Q. Which associations can help me with general information about import?

Canadian Association of Importers and Exporters Inc. is Canada’s key source of information on Canadian trade policy and provides Canadian importers with critical information, effective representation to government and timely advice. www.importers.ca

 


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Market Research

Q. What is the difference between secondary and primary marketing research?

 

Primary Research

Either gathering your own original data or paying a professional to do it for you. Professional market research can be very costly, but it is also customized to your specific needs. Primary research delivers more specific results than secondary research, which is an especially important consideration when you're launching a new product or service. 

Secondary Research

Using published information such as industry profiles, trade journals, newspapers, magazines, census data, and demographic profiles. This type of information is available in public libraries, industry associations, Trade Commissioners, chambers of commerce, vendors who sell to your industry, government agencies.


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Q. Where can I find country and sector market reports?

Market Research Reports offers hundreds of free country and sector reports from around the world.
http://www.infoexport.gc.ca/ie-en/IndustrySector.jsp


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Q. Where do I get Canadian export and import statistics

Trade Data Online provides a searchable database of the latest Statistics Canada and US Department of Commerce trade data.
http://www.wd.gc.ca/283_ENG_ASP.asp
http://www.ic.gc.ca/eic/site/tdo-dcd.nsf/eng/Home
 


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Q. Where do I get specific information about my international business interests?

Virtual Trade Commissioner (VTC) is a database which keeps ‘export ready’ companies in touch with the Canadian Trade Commissioner Service. The registration is free and the companies find information about their international business interests.
http://www.infoexport.gc.ca/eng/virtual-trade-commissioner.jsp


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Q. What is the TradeMap Canada?

TradeMap Canada is a tool to allow exporters and trade professional to easily access key international trade data.
http://www.canadabusiness.ca/servlet/ContentServer?cid=1184870983766&pagename=CBSC_FE%2FCBSC_WebPage%2FCBSC_WebPage_Temp&c=CBSC_WebPage


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Q. Where can I get information about international business reference sources and databases?

Read ‘International Business Information’ which describes key international reference sources and databases and provides the instructive analysis needed to effectively use them.  The book is available to read at Small Business BC Resource Centre.


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Q. Where can I get information about Canadian companies?

The Canadian Trade Index – CTI 2002 provides information on over 26,000 Canadian companies. http://www.ctidirectory.com
Canadian Company Capabilities (CCC) is an online database which profiles approximately 36,200 Canadian companies. http://strategis.ic.gc.ca/cdncc


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Q. Where can I get important information about changes to the rules that govern products and services as fast as possible?

Export Alert! Is a free pilot service that automatically e-mails companies when governments in any of the WTO members countries changes to the rules that govern products and services (technical regulation, conformity assessment or mandatory standard).
http://alert.scc.ca/ExportAlert/Index?lang=en


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Q. Where can I get information about new markets, new opportunities or new competitors?

Strategis is one of Canada’s most comprehensive internet sites for businesses and consumers that brings the global marketplace to their desktops.
http://www.ic.gc.ca/eic/site/ic1.nsf/eng/home


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Q. Where can I find consumer trends?

You can read the Consumer International, this is a European publication containing consumer trends across 28 non-European countries.
Available at the Small Business BC Research Library for in-site use.
 


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Q. Where can I get information about foreign tariff rates?

The Tariff and Market Access Division (EAT) of the Department of DFAIT is running a project regarding foreign tariff rates and related market access information.
http://www.dfait-maeci.gc.ca
 


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Q. Where can I get information about markets and business opportunities?

Over 300 Canadian Trade Commissioners work for Canadian business in over 100 cities all over the world. Visit the Virtual Trade Commissioner web site to view market information, business opportunities, make service requests and even update your company’s registration information. Visit: http://infoexport.gc.ca; http://infoexport.gc.ca/eng/virtual-trade-commissioner.jsp


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Q. Which business opportunities do I have in the international market?

The International Business Opportunities is a database which has been established to match and identify Canadian companies with international business opportunities received from trade officers.
http://www.international.gc.ca/menu-en.asp


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Q. Where can I find information about commercial areas in Vancouver that provides me with relevant market assessment information?

BizMapBC is a one-stop source for neighbourhood and commercial area information describing Vancouver’s Business Improvement Areas (BIAs). http://www.bizmapbc.com/


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Q. Where can I get information about companies importing into Canada and Canadian Importers?

Canadian Importers Database presents a list of companies importing into Canada.
The International Directory of Importers features listings of worldwide importing firms.
Canadian Association of Importers and Exporters Directory represents the total membership of the Canadian Importers Association Inc. (publisher: Naylor Communications Ltd)
Trade Directories of the World guides to more than 3,000 directories related to trade, industry
(publisher: World Trade Press)
Dictionary of International Trade is a dictionary with more than 4,000 international trade, bank, legal and shipping terms.
How to Conquer the World is a dictionary of more than 8,000 international business resources on the internet (publisher: Government institutes).
http://strategis.ic.gc.ca?sc_mrkti/cid/engdoc/index/html
http://www.export-leads.com
 


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Trade Terms

Q. What is a ‘bill of landing’?

A bill of lading is a contract of carriage between an exporter and a service provider (i.e. airline, steamship line, freight forwarder or shipping company, etc.) that identifies the parties to the transaction and their responsibility for payment of transportation and other accessorial fees, such as transfers and delivery.


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Q. What is a consular invoice?

A consular invoice describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. It is used in some countries.


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Q. What is a 'certificate of origin'?

A certificate of origin is a document that is required in certain nations. It is a signed statement as to the origin of the export item.


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Q. Do I still require a Certificate of Origin if I am trading within NAFTA?

Formal entries and informal entries require a NAFTA Certificate of Origin.
Formal entries $2,000 US and over are considered a formal entry and require a custom broker to transport the goods. Informal entries are under $2,000 US and can be transported in person or post.
 


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Q. What is a commercial invoice?

A commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods when assessing customs duties.


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Q. What is the job of a custom broker?

A custom broker helps to clear the goods through customs and delivers them to their final destination.


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Q. When do I need Customs Brokers?

For the Exporter, a customs Broker can inform of any potential problems in the destination country. Customs Brokers licensed by the Canada customs and Revenue Agency may, on a commercial basis, account for goods and pay duties and taxes on behalf of the importer, under section 32 of the Customs Act.


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Q. What is the function of a freight forwarder?

The basic function of a freight forwarder is get cargo from Point A to Point B at the right time and in one piece. You can find a Canadian Freight Forwarder at http://www.ciffa.com/links_web.asp


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Q. What is the NAFTA?

North America Free Trade Agreement country (NAFTA) which includes Canada, U.S. and Mexico.


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Q. What is the Harmonized System (HS) Tariff Codes?

The HS Code is an international method of classifying products for trading purposes. This classification is used by custom officials around the world to determine the duties, taxes and regulations that apply to a specific product.
http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?lang=eng&catno=65-209-X


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Q. What are Incoterms?

Cost and Freight (CFR): the exporter pays the costs and freight necessary to get the goods to the port of destination, but the risk of loss or damage is assumed by the buyer once the goods are loaded at the port of embarkation.
Cost, Insurance and Freight (CIF): the exporter pays the cost of goods, cargo and insurance plus all transportation charges to the named port of destination.
Delivered at Frontier (DAF): the exporter/seller's obligations are met when the goods arrive at the frontier, but before they reach the Customs border of the importing country named in the sales contract. The expression is commonly used when goods are carried by road or rail.
Delivered Duty Paid (DDP): this expression puts maximum responsibility on the seller/exporter in terms of delivering the goods, assuming the risk of damage/loss and paying duty. It is at the other extreme from the "ex works" expression listed below, under which the seller assumes the least responsibility.
Delivered Ex Quay (DEQ): the exporter/seller makes the goods available to the buyer on the quay or wharf at the destination named in the sales contract, and bears all costs/responsibility up to this point. There are two types of ex quay contracts in use: ex quay duty paid, whereby the seller incurs the liability to clear the goods for import, and ex quay duties on buyer's account, whereby the buyer assumes this responsibility.
Delivered Ex Ship (DES): the exporter/seller must make the goods available to the buyer on board the ship at the location stipulated in the contract. All responsibility/cost for bringing the goods up to this point falls on the seller.
Ex Works (EXW): opposite to "delivered duty paid." This minimal obligation requires the seller only to make the goods available to the buyer at the seller's premises. The seller is not responsible for loading the goods on the vehicle provided by the buyer, unless otherwise agreed. The buyer bears all responsibility for transporting the goods from the seller's place of business to their destination.
Free Alongside Ship (FAS): the goods must be placed on the docks by the seller, alongside the vessel. The seller's obligations are fulfilled at this point. The buyer bears all costs and risks of loss or of damage to the goods from that moment.
Free on board (FOB): the goods are placed on board the vessel by the seller at the port of shipment specified in the sales contract. The risk of loss or damage is transferred to the buyer when the goods pass the ship's rail.
Free Carrier . . . (named port): recognizing the requirements of modern transport, including multi modal transport, this principal is similar to FOB, except that the exporter's obligations are met when the goods are delivered into the custody of the carrier at the named port. The risk of loss/damage is transferred to the buyer at this time, and not at the ship's rail. The carrier can be any person contracted to transport the goods by road, air, sea, rail or a combination thereof.
Carriage Paid to . . . (named place of destination): the seller pays the freight for the carriage of the goods to the named destination. The risk of loss damage to the goods is transferred. The risk of loss or damage to the goods is transferred from the seller to the buyer when the goods have been delivered to the custody of the carrier.
For a wallchart with all the incoterms, dowload this pdf file from the International Chamber of Commerce: http://www.iccwbo.org/incoterms/wallchart/wallchart.pdf


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Q. What are Confirming Houses?

Confirming Houses or buyer agents are finders for foreign firms which want to purchase a Canadian Product.


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Q. What is the difference between a trade show and a trade mission?

A trade show is usually a privately-sponsored promotional event that focuses on a certain industry, or subset of an industry. A Trade Mission is often a trip of a select group of companies that is being sponsored by a federal, state or local agency.


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Q. Where can I get information about trade shows or exhibitions?

A useful internet site is Tradeshow week on the internet includes U.S. and international trade shows, exhibitions, companies, organizations and information sources related to the trade show industry. http://www.tradeshowweek.com
Within BC there is the BC Trade Events Calendar: http://www.bctradeevents.com/
 


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Financing

Q. Who can help me with exports financing?

Northstar Trade Finance Inc. and Business Development Canada support small and medium-sized Canadian exporters by offering financing to creditworthy foreign buyers of eligible Canadian goods and services.
Financing for Exporting provides small export businesses pre-shipment financing to cover the heavy costs associated with initiating and developing international markets.
http://www.northstar.ca/whoWeAre.php
http://www.bdc.ca
 


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Q. Who can help me to include my export financing options with my export proposals?

Financing Services for Smaller Capital Goods Exporters: EDC’s small business specialists assist smaller companies to include export financing options with their export proposals that are comparable to the financing packages offered by larger competitors for example with buyer financing, EDC lines of credit with foreign financial institutes or note purchase program.
http://www.edc.ca


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Q. Who can help me to share costs involving hiring employees to work on international trade projects?

The International Trade Personnel Program (ITPP) enables small businesses to employ eligible post-secondary graduates to help implement export marketing strategies by sharing some the costs involved in hiring recent post-secondary graduates to work on international trade projects.
Program for Export Market Development (PEMD) increases export sales of Canadian goods and services by sharing the costs of activities through repayable contributions. PEMD encourages Canadian companies to become exporters and helps existing companies to develop new markets.
http://www.wd.gc.ca
http://www.wd.gc.ca/eng/60.asp


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Q. What can I do if am unable to receive additional credit?

When a business in its start-up/growth phase is unable to receive additional credit at their bank or credit union, they generally use Accounts Receivable Financing or factoring.


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Q. Where can I read more about financing and government assistance for exporters?

Read ‘Your Guide to Canadian Export Financing – 2002-2003’
http://www.productivepublications.ca/exporting.htm


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Q. What are the different types of export insurance?

EDC’s Accounts Receivable Insurance Policy that covers up to 90% of your losses resulting from a wide range of commercial risks.
EDC’s Performance Security Guarantee provides your bank with 100% coverage against a call of the Letter of Guarantee issued on your behalf and also serves as your collateral.
EDC Political Risk Insurance covers up to 90% of losses due to non-payment of loans, resulting from three types of political risk (transfer and inconvertibility, expropriation, political violence).
http://www.edc.ca/english/insurance.htm


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