How to Export from Canada

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How to Export from Canada
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• Presentation overview
• What can you export
• The export process.
• 1. Pre export activities
• 2. Exporting
• 3. Post export
• 4. Getting paid

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• WHAT CAN YOU EXPORT?
• SERVICES
• GOODS or PRODUCTS
• We will concentrate in exporting or trading GOODS
  or PRODUCTS.
• If we classify them by how they are defined we
  can call them
• COMMODITIES (products price based) and
• NON COMMODITIES (products attribute based)

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• The Export Process
• Pre-export activities
• Export
• Post-export activities

• Be prepared, execute precisely, follow up to
  improve!!!

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• Pre-export
• Basic knowledge needed for international.
  trading
• INCOTERMS. You have to have a good command of
  your Incoterms. Know your purchase and selling
  terms.
• SUPPLIER. Who is your supplier and where is
  located, your purchase and payment terms, all
  technical specs.
• LOGISTICS. Deep understanding of all logistics
  involved in the exporting process.
• DOCUMENTATION. Knowledge of all documentation and
  legal requirements at your exporting port and at
  your importing port.
• IMPORTER. Who is your importer. Had he cleared
  all import requirements? Are pre shipment
  inspections needed? Are you allowed to export to
  that country? Can you get paid?

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• Pre-export
• INCOTERMS.
• Terms internationally accepted that
  provide rules for trading. Buying or selling
  terms are based on
• Departure point EXW (ex works)
• 2. Main Transportation Unpaid
• FCA (free carrier)
• FAS (free alongside ship)
• FOB (free on board)
• 3. Main Transportation Paid
• CFR (cost and freight)
• CIF (cost, insurance and freight)
• CPT (carriage paid to)
• CIP (carriage insurance paid to)

• Arrival Point
• DAF (delivered at frontier)
• DES (delivered ex ship)
• DEQ (delivered ex quay)
• DDU (delivered duty unpaid) and DDP (duty paid)

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• Pre-export
• SUPPLIER.
• Who is your supplier? Where is located?
• What are your purchase terms? EXW, FOB, CFR, CIF
  ?
• Clarify all technical specifications at
  purchasing quality, packaging, quantity.
• After a Purchase Order is issued, all amendments
  will cost you money.
• Specify Payment Terms COD, CAD, open terms
  (7,15,30,60, 90 days?), L/C sight or terms?
  Partial shipments allowed? etc

What happens if a supplier defaults me?

• Answer Make sure you have good SC/PC that
  includes rules of dispute and always have a plan
  B or quantify your worst scenario.
• PS Good luck and have fun!

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• Pre-export
• LOGISTICS
• All transportation, storage, loading and
  unloading activities involved from the point in
  which the product is received from the supplier
  to the point in which the product is appropriated
  by the buyer.
• Main controllable cost component of your cost
  structure.
• Important to coordinate shipping and arrival
  dates with market situation and payment terms.

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• Pre-export
• LOGISTICS
• Main logistics components before the export is
  done, all shipping cost from origin to shipping
  port, involves
• Truck from plant to rail terminal (CP or CN)
• Intermodal (truck/rail) or rail (boxcar or hopper
  car or platform) movement to port
• Truck at arrival to move product to stuffing
  facility if not in container.
• PD of marine container and stuffing facility
  cost.

Special docs for high tech

• DOCUMENTS
• The main pre-shipments issues are
• Preparation of B/L instructions before loading.
• Request of Export certificate 5 days before
  loading to the CFIA if its food.
• Request of Inspector if required by destination
  country
• Preparation of Export declaration or B-13

Documents are very important specially when L/Cs
are involved
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• Pre-export
• IMPORTER
• When issuing your Sales Confirmation
  or Sales Contract, be very clear with
• Product Specifications (same as purchase ones)
• Payment Terms COD, CAD, Open Terms (7, 14, 30,
  60 or 90 days?) from arrival or B/L date?,
  Promissory Note? How many days? L/C payment? At
  sight, 30, 60, 90, 180 days? Is L/C confirmed and
  unconditional?, are partial shipments allowed?
  Can you meet all L/C requirements? No typos on
  the L/C? (typos cost money to amend)

• 3. Shipping dates. Allow yourself a reasonable
  time frame to fulfill your shipping contract. Are
  partial shipments allowed?
• 4. Import Requirement. Be sure all import
  requirements are cleared by the importer BEFORE
  you load the product into a container Import
  Permits or License, is a quota needed? Are
  pre-shipment inspections needed? Who is paying
  for them? Are special certificates needed? DO I
  NEED AN EXPORT PERMIT ?

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• 2. Exporting
• If all previous issues before loading the goods
  are covered, the Exporting process comes down
  execute the following
• 1. EXPORT LOGISTICS. Shipping cost from country
  of origin to destination country.
• 2. DOCUMENTATION. As required at exporting and
  importing.
• 3. INSURANCE. Transportation insurance and risk
  insurance.

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• 2. Exporting
• Export Logistics
• Basically there are 2 main costs to control
• Shipping cost at port of origin
• Involves main freight Marine / Rail / Truck
  / Air, THC at origin, storage if needed to roll
  booking.
• - Shipping cost at destination port
• THC at unloading (usually paid for by
  customer), storage charges (port) and demurrage
  charges (line) if container is not pick up within
  the free time. Demurrage charges (line) if
  container is not returned within the free time.

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Pre-Inspection certificate is not required
anymore to Peru. Good to check for other
destinations.

• 2. Exporting
• Documentation
• Documents needed to
• Report your Export from Canada a B-13, from USA
  a Shippers Export Declaration (SED)
• Imports The standard for most countries are
  Commercial Invoice, B/L (Bill of Lading),
  Certificate of Origin and Export Certificate (
  can be called Phytosanitary for agricultural
  goods, Zoosanitary or Health for animal products
  or Export Certificate for other goods that
  require it)

• Additional requirements by some destinations
• Loading Inspection by independent company like
  SGS, Cotecna, Bureau Veritas and others,
  certificate of inspection required by some
  destination countries.
• Non Radioactivity certificate, Quality or Grade
  certificate, Analysis certificate, Weight
  certificate, Clean Container certificate, Packing
  list, etc, etc

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• 2. Exporting
• Documentation
• YOUR INVOICE.
• This is your main instrument to be paid, always
  be sure to clearly indicate
• Product Clearly describe it and its main
  quality specs.
• Your companys information, invoice number and
  date.
• Price With the Incoterms you agreed with your
  Sales Confirmation and the CORRECT CURRENCY
  clearly indicated.
• Quantity and Packaging
• Shipment shipment period within the contract
  and means ( marine, air, train, etc)
• Payment terms When, How and Where you will be
  paid.
• Special conditions If there is an special
  condition or special documents tied to your
  contract or special permits, mention where are
  them on your invoice.
• Mention your rules to solve disputes.

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• 2. Exporting
• Transport Insurance
• The standard transportation insurance
  to be paid depending on your Incoterms, if you
  sold the product CIF, then you have to organize
  the insurance payment.
• Risk Insurance
• Also known as Export Insurance, it
  covers your receivables against your customer not
  paying for the product (if the sale was open
  terms) or abandoning the goods at destination
  port. Very costly but needed in many cases.

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• WHO CAN PROVIDE YOU WITH RISK INSURANCE ?
• In Canada the EDC is your best alternative.
• The EDC ( Export Development Canada) can insure
  your invoice for up to 90 of its value.
• Please do not confuse Transport Insurance (for
  damages or losses that happen during
  transportation) with Risk Insurance (Basically
  insuring your invoice)

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• 3. Post Export Activities
• An export operation is not finish until you are
  fully paid and the importer confirms you their
  total satisfaction with the product received.
• Be ready for export problems such us
• - Importer cant meet financial obligation after
  the goods arrived
• - Market collapses and importer wants to cancel
  order.
• - Goods do not arrived in good conditions.

• Your best buyer is a satisfied customer, always
• Give your buyer accurate information. Market
  information, logistic information, documentation
  information, etc, etc
• Be sure you are shipping the right quality and
  quantity
• Always look for an alternative destination for
  your product (always have a plan B)

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• 4. GETTING PAID
• Payment of goods exported are the usual
  confirmation that a business transaction is
  finalized. The most usual payment terms are

Advance payment at purchase confirmation. Partial
advance and balance CAD. COD cash on
delivery CAD cash against documents Open Terms at
7, 30, 60 o 90 days from arrival or from B/L
date. Promissory Note at xx days from arrival or
B/L. L/C or Letter of Credit, at sight? Or 30,
45, 60, 90, 120 days? Is the L/C going to be
confirmed, irrevocable and negotiable ? Are
partial shipments allowed? Are the documents
requested the right ones? Each condition cost
money and corrections or amendments to an L/C
cost too. Who will pay for the amendments??
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• 4. GETTING PAID
• HOW CAN YOU SECURE PAYMENT ?
• You can try to secure payment or lower
  your risk of not being paid in a number of ways.
  
• 1. HAVE A CLEAR INVOICE
• 2. INSURE YOUR GOODS.
• 3. GET A RISK INSURANCE
• 4. HAVE A SECURED PAYMENT INSTRUMENT LIKE AN
  L/C
• THE MOST IMPORTANT OF ALL IS TO KNOW
  YOUR CUSTOMER, KNOW WHO YOU ARE SELLING TO, KNOW
  THEIR BUSINESS AND FINANCIAL LIMITS.

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• Good Luck in your Exporting Business!
• Jose Zlatar  Directeur,Developpemnt des
  Affaires Amerique Latine 
• Business Development Director, Latin
  America  
• AGROPUR Export Group Inc.              
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