Canada Export Requirements Incoterms
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2 Canada Export Requirements Incoterms
3 Topics of Discussion Canada export requirements Terms of sale Insurance Documentation
4 Export Process Are there export restrictions? What are the import conditions? Consult with your freight forwarder Consult with your international banker Tender goods to the carrier or freight forwarder Prepare shipping documents Agree on the terms of sale and method of payment
5 Role of a Freight Forwarder Arrange the movement of cargo 3rd party logistics (3PL) Provide logistical expertise Networked with agents or offices globally
6 What Are Your Export Plans? What volumes will you be shipping? What is the timeframe? Which countries are you considering?
7 Exporting First Steps Set up an export account with Canada Revenue Agency Provide the following: GST Number Full legal company name and address
8 Incoterms A set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Defines buyer and seller obligations Grouped in 4 main categories
9 Sellers and Buyers Responsibility Chart For a given term, "Yes" indicates that the Seller has the responsibility to provide the service included in the price. "No" indicates it is the Buyer's responsibility. If insurance is not included in the term (i.e. CFR) then insurance for the transport is the responsibility of the Buyer.
10 Most Common Incoterms FOB Free on Board Point of transfer of risk and cost occurs when the container clears the rail of the vessel (as the ship is loading at the origin port). CIF Cost Insurance and Freight Point of transfer of risk and cost occurs when the container clears the rail of the vessel (as the ship is being unloaded at the port of destination).
11 Incoterms Key Points Understand your selling price, what it includes and other potential costs for which you will be responsible Make sure both you and the purchaser clearly understand who is paying for what costs Don t forget about insurance
12 Shipping Methods
13 Transportation of Goods and Commodities What are the specific requirements of the shipment? Parameters that determine the optimal transportation selection: Transit time Freight cost Origin Destination
14 Cargo Insurance
15 Shipping Insurance More important in international transportation than in domestic transportation Observe the terms of sale Main reasons for loss or damage: careless handling & storage, theft & pilferage, fortuitous losses Protect against General Averaging situations
16 Shipping Insurance What value do you insure? Factors that influence the insurance rate: type of commodity, method of shipping, terms of sale, country of destination Insurance companies may specify certain conditions As a general rule, this will typically cost about 1/2-2/3 of 1% of the product value depending on commodity and mode of transport
17 Shipping Documents Who prepares them? Are originals required? Do they need to be chamberized or legalized? How many copies of each are required? What purpose do they serve?
18 Documentation
19 Required for: Shipments valued at more than $2,000 CAD Destinations other than the U.S., Puerto Rico, U.S. Virgin Islands Filed prior to exportation: Electronically by Canadian Automated Export Declaration (CAED) Form B13A Export Declaration
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22 Usual information required includes: Date of issue Names and addresses of the buyer and seller Contract, PO or invoice number Description of the goods, quantities and unit prices Total weight and number of packages Shipping marks and numbers Terms and currency of sale Reason for export
23 What is it? Why is it used? How does it differ from a commercial invoice?
24 Penalties - AMPS Administrative Monetary Penalty System (AMPS) Administered by Canada Border Services Agency Several penalties are linked to the export process
25 Pacific Customs Brokers (Canada) Canada Export Centre Export Development Canada Canada s Free Trade Agreements Canada Border Services Agency U.S. Customs and Border Protection
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