Successful exporting to Canada: What businesses need to know
Exporting to Canada offer businesses a great opportunity to tap into new markets and expand their customs base. But there are rules to be respected.
Questions we answer in this blog:
What are the opportunities of exporting to Canada?
What is the process for importing goods into Canada?
What are Canada's key Free Trade Agreements and how do they affect exports?
How can we help businesses navigate customs and duties when exporting to Canada?
What is the Goods and Services Tax (GST) and how does it affect exports to Canada?
What happens when the exporter acts as the importer of record?
What challenges do non-resident importers face regarding GST recovery?
How can businesses get help with customs and tax compliance in Canada?
1. What are the opportunities of exporting to Canada?
Exporting to Canada offers businesses a significant opportunity to enter a stable, developed market. Canada's proximity to the United States and established Free Trade Agreements (FTAs) make it an attractive destination for exporters looking to expand their reach. By tapping into Canadian markets, businesses can diversify their customer base and gain access to a wide range of industries, including technology, natural resources, and manufacturing.
2. What is the process for importing goods into Canada?
When exporting goods to Canada, the process of customs clearance involves several key steps.
Role of the Importer of Record: Typically, the Canadian customer acts as the "importer of record" and is responsible for the customs clearance process, paying applicable duties and taxes, and ensuring the goods comply with all Canadian regulations.
Customs Clearance: The carrier submits an electronic cargo control document to the Canada Border Services Agency (CBSA) before the goods arrive. Once the customs declaration is provided, the CBSA verifies and releases the goods, unless there are issues that require further inspection.
3. What are Canada's key Free Trade Agreements and how do they affect exports?
Canada has numerous Free Trade Agreements (FTAs) with countries like the United States, Mexico, the United Kingdom, Japan, South Korea, and the European Union. These agreements allow for preferential tariff treatment under certain conditions, including the Rules of Origin. Goods that meet these rules are often eligible for duty-free or reduced tariff treatment when imported into Canada.
Rules of Origin: These rules determine whether the goods qualify for preferential tariff rates. Producers and exporters must provide certification of origin to support these claims.
Responsibility for Certification: The exporter, or the producer in some cases, is responsible for certifying the goods' origin. In certain cases, like the USMCA, the importer may also sign the certification.
How We Can Help You
At Customs Manager USA, we provide a comprehensive “Four-in-One” support service to help businesses manage their exports to Canada:
Expert Consultancy & Advice: We offer tailored advice on trade regulations and compliance.
Customs Training: We provide training programs to ensure your team is well-equipped to navigate Canadian customs regulations.
Trade Intelligence: Our trade intelligence services help you stay informed on the latest customs regulations and industry trends.
Customs Clearance: We work with Canadian customs brokers to ensure smooth and efficient customs clearance of goods into Canada.
You can book a free consultation with us at www.customsmanager.org.