You are setting up your new business or you have an existing business and now looking to export your products outside of Canada. You have certain reporting and documentation requirements. The government of Canada is also here to help you.
Exporting goods outside Canada can be a complex process, and there are a number of things you need to know before you begin.
Here are some key considerations to keep in mind:
Export controls and regulations: There are a number of export controls and regulations that apply to certain goods and technologies, including weapons, controlled chemicals, and strategic goods. Before exporting any goods, it’s important to check whether they are subject to any export controls or regulations, and if so, to ensure that you have the necessary licenses and permits.
Obtain a business number: You need to register with CRA and get the import/export business number. If you already have a business number, you may request CRA to register you for the import-export program, and CRA will issue an extension “RM0001” to your existing business number. When you incorporate your business, CRA automatically gives you a business number with the extension “RC0001” which is for your income-tax program account. If you are self-employed, you may not have the CRA business number unless you have already registered for GST/HST. You can apply to CRA to issue a CRA business number.
Identification of the products you want to export: When you are exporting your products outside of Canada, you need to declare the exact description of your products in your export declaration to the Canada Border Services Agency. This will assist Canada Border Services Agency in determining if your products are restricted or if you need a permit or license to export. Usually, your shipper will take care of this; however, you should be aware of this. If you are exporting to the United States, you do not need to submit an export declaration. There are some other exceptions.
Customs documentation: When exporting goods, you will need to complete a number of customs documents, including a commercial invoice, a packing list, and a certificate of origin. These documents provide information about the goods being exported, their value, and their country of origin.
Tariffs and duties: You may be subject to tariffs and duties when exporting goods, which can vary depending on the country of destination and the type of goods being exported. It’s important to understand these costs and factor them into your pricing.
Shipping and logistics: Exporting goods requires careful planning and coordination of shipping and logistics. This includes arranging for transportation, packaging, and insurance, as well as ensuring that the goods are properly labeled and marked.
Payment and finance: Exporting goods can also involve complex payment and finance arrangements, including letters of credit, export credit insurance, and foreign exchange risk management. It’s important to understand these arrangements and work with trusted financial partners to minimize risks.
Export assistance: Finally, it may be helpful to seek assistance from government agencies or export associations that can provide guidance and support for exporting goods. These resources can help you navigate the complex export process and ensure that your goods reach their destination safely and efficiently.
By keeping these considerations in mind, you can successfully export goods outside Canada and expand your business into new markets.
Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.