Archive for the ‘Exporting’ Category


 

TradeTalk |BC Trees and Trade Agreements

Softwood, Hardwood and Forestry - NAFTA Re-Negotiations

 

A year after the initial signing of the Trans-Pacific Partnership (TPP) on February 4th, 2016, the U.S. pulls out and presses forward on renegotiations of NAFTA as well. Will these U.S. Trade actions impact Hardwood, Forestry Trade or Softwood Lumber Agreement negotiations between the U.S. and Canada?

With the October 12, 2015 expiration of the Softwood Lumber Agreement (SLA) and looming concern over tariff increases due to the December 16, 2016, United States Department of Commerce decision to initiate countervailing and anti-dumping investigations into imports of certain Canadian softwood lumber products the conversation and its topics seems to have changed between these two countries – or has it? Let’s have a look at what the goals for the forestry industry were in that conversation by both sides, and then let’s look realistically on the status of those goals today.

On the U.S. side the concern is:

Q – Were too many concessions made to get trades agreements in place (TPP or NAFTA) or others?

Q – Are U.S. companies facing hardships because of current lumber trading activities?

 

On the Canadian side of the conversation:

Q – Did the Canadians press more feverently to get the TPP Agreement signed?

Q – Why claim our crown land lumber is subsidized – it has been proven otherwise in court.

Hardwood, Softwood and BC Trees:

 

Let us first take a look at Forestry and TPP. According to Joel Neuheimer Canadians did press into it, and for what appears to be clear reasoning and benefit to Canada:

The reason, as noted by Joel Neuheimer, Senior Director of International Business at the Association of Canadian forest products , is that with this ratification, the industry will be opening new outlets and increase the level of exports on the international market, particularly to countries such as Japan, Vietnam and Malaysia.

Canadian forestry companies export about $33 billion worth of goods each year In more than 180 countries, primarily in Asia.

NOTE*** NOT primarily in the U.S. as many believe.

The TPP Agreement would have removed customs barriers for Canada’s forest products currently subject to tariffs of up to 31% in Vietnam, 40% in Malaysia, 20% in Brunei and 10% in Japan as reported by Etienne Dumont / Canadian Broadcasting Corporation.

NAFTA Renegotiations

 

Second, let’s review the NAFTA Re-negotiations and their impact on softwood lumber.

Trevor Nichols, of Castanet News says – There is hope for softwood lumber!

According to Mr. Nichols, B.C. Premier Christy Clark, while speaking at a breakfast event in West Kelowna on January 27, said Trump’s promise to rebuild the American economy might work in Canada’s favour.

 

“While the Americans are getting more protectionist, Donald Trump, as a builder, knows intuitively that residential housing starts is a major driver for economic growth for Americans. They cannot grow their housing industry without Canadian softwood going into their country, because it’s just too expensive to build and buy without our lumber.

Because the U.S. can’t produce enough lumber on its own to drive residential building, it’s actually in the country’s best interest to make sure Canadian lumber is filling the void.”

Nick Arkle, the co-CEO of Gorman Bros. Lumber Ltd. agrees with Clark, saying Canadian lumber is “critically important” to the U.S.

Additionally, B.C. Forest Minister Steve Thomson shares his thoughts here:

“Since 1982, softwood lumber exports from Canada to the U.S. have been subject to five rounds of U.S. trade litigation. “This is round 5 of this process and the Canadian industry has always been successful in defending its softwood lumber policy,” said Thomson.”

Local update February 05, 2017 | B.C. Forest Minister Steve Thomson flew to Ottawa on Sunday to start working toward a new trade agreement on softwood lumber with the U.S. as officials anticipated release today of the latest U.S. International Trade Commission report on their investigation into the import of Canadian softwood lumber.

You can read this full article in more detail | HERE

For access to a copy of the Fed Register notice issued which means that preliminary reviews are starting for the softwood tariffs listed, you can review what is published so far in regards to the Softwood Lumber Agreement negotiations  HERE  a full scope has not been written as yet.

We know that you also want to know how to have your voices heard in that discussion, especially when you are directly affected.

You have questions:

  • How are the field experts responding to the Trade Deals / Negotiations/ Issues?
  • What are the experts discussing amongst their peers??
  • How is your voice heard in these conversations?

One way to share your voice is to publish your concerns, insights, ideas or expertise online. Each week we publish and share industry news, our insights and reports that impact you as our readers. Do you have something that you would like us to share? Ask? Research for you? Let us know and we will add your requests to our weekly research and publishing goals.

 

New Program Helps Exporters Develop New Markets

Export

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small businesses in Canada can expand their horizons through a new program by the Canadian Trade Commissioner Service (TCS) that offers them an incentive to diversify their export markets. Called CanExport, the program provides, from now until the end of March 2020, $11-million per year in contributions to small and medium-sized enterprises (SMEs) across Canada that are seeking to develop their exports to a new market. The application process is simple with a quick turnaround. Applications are entirely done online and are assessed based on the information submitted by the company within 25 business days. The program is administered by the TCS, in partnership with the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP).

CanExport shares the cost of pre-approved eligible expenses for initiatives that aim to develop new markets. It is expected to help hundreds of exporters per year across the country to better compete in the global economy. The non-repayable contributions will be determined on a cost-sharing basis and can represent up to 50 percent of eligible expenses, which can include for instance travel costs, event registration, translation and contractor fees. Ranging from $10,000 to $99,999, approved contributions are made to successful SMEs via the reimbursement of certain expenses based on status reports and claims. The remainder of the funds can come from other sources, but the total of all government assistance cannot exceed 50 percent of the expenses for the project. As such, applicants need themselves to provide funds covering at least 50% of the eligible costs in order for their project to qualify.

With the help of CanExport, Canadian SMEs are encouraged to look outward Canada to expand their export capabilities. CanExport is intended to build stronger and more competitive Canadian capacity to effectively compete in the global economy, by connecting SMEs with the tools and resources they need to succeed in a new market. CanExport compliments the large spectrum of services that the TCS already offers each year to thousands of Canadian exporters. This program intends to bring companies literally to the market and to provide a “bridge” between the assistance that companies get preparing for international markets from Regional Offices of the TCS across Canada and the help they receive from Canadian Embassies and Consulates abroad, such as making introductions and facilitating contracts. Many SMEs are not used to exporting or they have experience only with more traditional markets and are concerned about the risk of developing new opportunities that can boost their prospects abroad. These new endeavors represent a certain level of risks for these companies, but CanExport is a way for the Government of Canada to share these risks so that Canadian SMEs have a greater interest to explore new markets, get out of their comfort zone and pursue new opportunities.

Is your company eligible?

To be considered for CanExport funding, a firm must:

  • Be a for-profit company in Canada, either incorporated or a limited partnership;
  • Have a valid CRA business identifier number;
  • Have at least one (1) and up to 250 full-time equivalent employees that can be verified by the CRA based on payroll accounts;
  • Have $200,000 to $50 million in annual revenues, which can be verified by the CRA based on the most recent GST declarations of the company.

Is the market your company targets eligible?

It is important to mention that the objective of this program is to help SMEs export to a new target market, which the program guidelines define as a foreign country where the applicant has not exported or had locally based operations for at least 24 months. It is therefore key that applicants be able to demonstrate that the market they target is a country where they have not exported. When opportunities exist for companies to expand in markets where they are already exporting, though a financial support from our program is not possible, we still strongly encourage them to contact the TCS to obtain assistance in order to prepare for international markets and receive services and support throughout the implementation activities. The TCS can also help develop your business internationally by identifying market opportunities, barriers and trends or by making introductions to qualified foreign contacts. For more information on the TCS services offered, and to find the regional trade commissioner nearest to you who is responsible for your sector of activity, please click here.

Beyond the requirement for the market to be a new one for the applicant, the program is otherwise open to all markets, except in countries where sanctions apply to the planned activities. Though many experienced exporters might contemplate a project to develop a more difficult market, new exporters may be looking to fairly traditional countries as a first step to diversify its customer base. In fact, for many companies that have never exported before, even entering the U.S. market can be quite an adventure and might require some financial support.

Are your activities eligible?

Proposals will be evaluated based on the viability of the applicant’s export business case and whether the project is expected to yield incremental results and benefits to Canada. There will also be an emphasis on whether the activities align with the Government of Canada’s trade strategies and on whether there is a market potential in the targeted country for the products or services the applicant intends to export. The assessment could also, when applicable, include elements such as the company’s export readiness and business history. The project and export business case, as illustrated via the online application, can include many different types of activities, all of which could be considered eligible as long as they meet the following: aim at promoting international business development; go beyond the company’s core-business activities; are clearly linked with the applicant’s long-term international business development strategy for the chosen target market; bear potentially significant benefits for Canada and for the company’s growth; are supported by sufficient detailed information on the nature and extent of the proposed expenses; and, of course, as long as the proposed course of action is strongly justified by the rationale outlined in the application. Examples of eligible activities could include, but not be limited to, the following: travel to meet with potential clients or agents; attendance at trade fairs, seminars and conferences; participation in trade missions; the development or adaptation of marketing tools to suit new markets; legal fees involved in agreements with local partners and distributors; consultant fees for a custom-market study, etc.

For more information on the CanExport grant, please click here.

Guest Blog Author: Elise Racicot, CanExport Program Manager, Global Affairs Canada

Have questions regarding the eligibility of your company and its activities? Have you heard or considered the CanExport grant before reading this blog? Let us know in the comments below or email us at Ask Your Broker.

How To Break Into The Global Export Market

The Global Export Market

 

With the signing of recent trade agreements, global trade activity is turning a very significant corner. There is an improved climate for international trade and Canadian exporters are positioned to benefit. Exporting outside of Canada is an excellent way to grow your business.

 

Did you know?

  • International trade represents more than 60 percent of Canada’s GDP.
  • One in five jobs in Canada is linked to exports.
  • There would be 3.3 million fewer jobs without international trade.
  • Canada’s unemployment rate would skyrocket to more than 25 percent without exports.

(Source: Global Affairs Canada)
 

If overseas sales are currently, or shortly will be, part of your business plans, how do you approach the daunting task of breaking into the export market?

Part of a winning formula should include professional business services.  International marketers, bankers and freight forwarders play an important role and their experience and expertise will be very valuable.  Their knowledge will guide the development of your business plan and, when the plan takes shape and begins to unfold, you will need their guidance and involvement when the goods begin to physically move to the foreign markets.  Ultimately, your goal is to acquire regular ongoing business to make your efforts worthwhile.  Your careful choice of field experts will help make this happen.

Export Consultation Services

Pacific Customs Brokers can help you open the door to export opportunities. Speak to one of our trade advisors who will assist and advise you as your independent consultant.

 

Increasing your company’s knowledge base will also be necessary.  Foreign cultures, market studies, intellectual property rights, financing, terms of sale, international shipping, and export and import processes are just a few that come to mind.  When it comes to deciding who should be involved, you will be surprised to find that export sales touch almost every department – sales and marketing, accounting, legal, purchasing, production, etc.  Success means bringing everyone on board to buy into the plan. New or aspiring exporters may want to attend a trade compliance session to increase their education in these areas.

Global Export Seminar

As a Canadian exporter, if you are shipping beyond the U.S. and into the global market, Global Export Seminar will cover key topics. In this seminar you will gain a better understanding of free trade agreements, regulations and how to prepare the documentation for export. We will provide you with a solid foundation of reporting, record-keeping requirements and terms of sale.

Register for an upcoming seminar today!

 

Do you have questions on global export? Have you had experience breaking into the global export market? Share your thoughts in the comments section below or email us at Ask Your Broker.

Canadian Automated Export Declaration (CAED) Program 2016 Version Release

Export - Canadian Automated Export Declaration (CAED) Program

 

The Canadian Automated Export Declaration (CAED) Program was launched by the Canada Border Services Agency on January 1, 1998, as a fast, inexpensive and easy way of reporting goods exported from Canada. The CAED application enables exporters or their agents (including service providers) to electronically report their goods directly to the Government of Canada thus eliminating the manual reporting process form (B13A). CAED is a great tool because it reduces your company’s exposure to the Administrative Monetary Penalty System (AMPS).

About the CAED Application

The CAED application is free of charge and includes the following features:

  • A Harmonized Commodity Description and Coding System (H.S.) classification search
  • Built-in encryption
  • Dialog boxes that remember input
  • Extensive online help
  • Online submission functionality

Update for Current Users of the CAED Application

For those that are currently using CAED, the 2016 version of the Canadian Automated Export Declaration (CAED) program software will be available and ready for download when it is released on December 7, 2015. The 2015 version of CAED will expire on January 31, 2016, at which point only the 2016 version will be valid.

CAED participants should upgrade to the CAED program, 2016 version, by downloading the software along with the release notes from the website www.statcan.gc.ca/exp.

 

Changes to “Place of Exit” and Revised Port Names

The following offices will be eliminated from the “place of exit” field in the 2016 version of CAED:

  • NB – Deer Island Point (208)
  • NB – Grand Manan Airport (224)

The following offices will be added to the “place of exit” field in the 2016 version of CAED:

  • NB – Bloomfield (200)
  • NB – Fosterville (220)
  • NB – Forest City (222)
  • NB – River de Chute (226)
  • QC – Herdman (302)

The following offices, shown with revised port names, will be added to the “place of exit” field in the 2016 version of CAED:

  • AB – Calgary – Air Commercial (701)
  • AB – Edmonton – International Airport (702)
  • BC – Vancouver – Waterfront and Warehouse Operations (806)
  • BC – Penticton – Airport (807)
  • BC – Kamloops – Airport (814)
  • BC – Prince George – Airport (820)
  • BC – Kelowna – International Airport (831)
  • BC – Sidney – Victoria International Airport (837)
  • NS – Yarmouth – Ferry Terminal (025)
  • NS – Halifax – Stanfield International Airport (026)
  • ON – Cornwall Traffic Office (409)
  • ON – Niagara Falls – Queenston Lewiston Bridge (427)
  • ON – Sault Ste. Marie Bridge (441)
  • ON – Fort Frances Bridge (478)
  • ON – Toronto – Interport Sufferance Warehouse Ltd. (496)
  • SK – Saskatoon – Commercial (605)
  • YT – Dawson City Yukon River Landing (894)

When using the CAED program to report export goods to the Canada Border Services Agency (CBSA), ensure that the declaration is fully completed, accurate and that a detailed description of all goods is provided. Doing so may prevent any unnecessary delays with your shipments.

For CAED information: Contact the CAED Helpdesk – Statistics Canada

  • Tel. 1-800-257-2434 (toll-free calls within Canada)
  • Tel. 613-951-6291 (charges apply for calls outside Canada)
  • E-mail: [email protected]
  • Statistics Canada website: www.statcan.gc.ca/exp

For more export reporting information, consult:

Alternatively, you may contact the CBSA Border Information Service (BIS).

 

New to the CAED Application

For those not yet registered, for you convenience, there is a software demonstration that can be found at the following link at Statistics Canada: http://www.statcan.gc.ca/eng/exp/demonstration

 

Electronic Filing for B13A

Some steamship agents will no longer submit the export documentation as there is a push to get exporters to be use the Canadian Export Declaration System (CAED), and thus saving you the shipper/receiver to have to present the export documentation in person at the appropriate designated export office.

It is important to note that shipments that require permits, you can still submit electronically, however, you must submit a hard copy of the CAED (B13A), along with a hard copy of the export permit in person to the designated export office at the place of exit.

 

Export Consultation Services

Pacific Customs Brokers offers export consultation services. We can assist and advise you as your independent consultant. To learn how Pacific Customs Brokers can help you open the door to export opportunities, speak with one of our logistics specialists today.

 

Global Export Seminar               

As a Canadian exporter, if you are shipping beyond the U.S. and into the global market, Global Export Seminar will cover key topics. In this seminar you will gain a better understanding of free trade agreements, regulations and how to prepare the documentation for export. We will provide you with a solid foundation of reporting, record-keeping requirements and terms of sale.

Register for an upcoming seminar today!

 

Have questions questions about exporting from Canada? Post them in our comments section below or email us at Ask Your Broker.

Additional Resources

How U.S. Exporters Can Access the Profitable Canadian Market

Non-Resident Importing into CanadaWith a significant boost from consumer and business spending, there is a resurgence in the U.S. economy. Economists are encouraged by an increase in export volumes and businesses are now expanding their sales to the number one export market outside of the United States – Canada.

Sharing a border is not the only thing Canada and the U.S. have in common. The United States and Canada share the world’s largest and most comprehensive trading relationship (source). Currently, Canada is the United State’s largest goods trading partner with $632 billion in total (two ways) goods trade during 2013 (source) accounting for 19 % of total U.S. exports. Canada offers excellent business opportunities for  U.S. companies. With similarities in people, language and the close shipping proximity, exporting to Canada can be the most lucrative and easiest export market for U.S. exporters.

 

The Canadian Market:

  1. An estimated 75% of Canadians live within 161 kilometers (100 miles) of the U.S. border. (source)
  2. Potential market of more than 35 million people. (source)
  3. U.S. goods exports to Canada in 2013 were $300.2 billion, up 2.6% ($7.7 billion) from 2012.(source)
  4. U.S. exports to Canada account for 19.0% of overall U.S. exports in 2013. (source)

As a Canadian and U.S. customs broker with experience on both sides of the border, Pacific Customs Brokers knows first hand the benefits of international trade between these neighboring countries.

 

How Can U.S. Exporters Access the Profitable Canadian Market?

If you are a U.S. company, then perhaps the Non-Resident Importer  option may be your biggest advantage when selling your goods to Canada.

 

Who is a Non-Resident Importer (NRI)?

A Non-Resident Importer (NRI) is simply a company that is considered the Importer of Record for shipments going into Canada, even though the company does not have a physical presence in Canada. A Non-Resident Importer controls the customs release process and the costs associated with getting their products into Canada in a timely and cost-effective manner. Products are sold with an all-inclusive delivered price. The customer orders and pays for the product and waits for it to be delivered.

 

Benefits of Becoming a Non-Resident Importer (NRI):

By considering the Non-Resident Importer option, U.S. exporters can:

  • Remove border hassles and unexpected fees for your Canadian customers
  • Provide price guarantee to leverage more sales
  • Capitalize on NAFTA  for your ‘Made in USA’ products
  • Simplify customs documents and reduce customs brokerage fees
  • Open doors to large retailers who will not agree to be the Importer of Record
  • Create a potential advantage over U.S. competitors without impacting profits
  • Position yourself on an even playing field with Canadian firms without the additional expense of a Canadian office, warehouse or distribution point
  • Leverage Canada’s trade agreements by shipping directly from participating foreign countries into Canada. There’s no need to land your goods in the U.S. first.

 

For further information on the Non-Resident Importer option and to learn how it could benefit your sales strategy, please contact us.

Importing into Canada for the Novice:

For those who are new to importing into Canada, our webinars on Importing for the Beginner [CA Series] will make a good start. In this two-part webinar series to get a step-by-step description of the importing process into Canada. Each part in the series is 60 minutes in length and will provide a comprehensive understanding of the supply chain parties involved, compliance considerations, documents and forms, free trade agreements, and more.

Learn more and register »

 

Is your American business trying to expand into Canada? Have you considered Non-Resident Importing? Let us know in the comments below or email us at Ask Your Broker.

 

Additional resources: