HOW TO IMPORT TO
CANADA
Jose Zlatar
WHAT CAN YOU IMPORT ?
WHAT CAN YOU IMPORT
?????
Basically there are 2 types of goods
you can import into CANADA :
1.
NON REGULATED GOOD. Any
product that does not need an
special permit to be imported
2.
REGULATED GOODS.
Products subjected to import
controls.
• WHAT ARE REGULATED
GOODS ?
• All goods listed as REGULATED
by the EXPORTS AND
IMPORTS CONTROL BUREAU
(EICB)
• The EICB administers the
EXPORTS AND IMPORTS
PERMITS ACT enacted since
1947 to protect vulnerable
industries and regulate trade.
• The EICB is part of the Ministry
of Foreign Affairs and
International Trade.
REGULATED GOODS
REGULATED
GOODS
Import Controlled :
• Textiles and Clothing : check if
needs country quota.
• Agricultural products :
POULTRY, EGGS, DAIRY
subject to quotas.
• Steel Products
• Military equipment, weapons
and munitions.
Can I bring a
Pollito a la
brasa from
Peru??
REGULATED GOODS
REGULATED GOODS
Export Controlled :
* Sugar, Wheat, Peanut butter
• Textiles and Clothing
• Military, dual use goods
• Nuclear energy materials and technology
• Chemical or Biological Goods
• Softwood lumber, unprocessed wood
• Goods of US origin
• All products going to Iran, North Korea
and Myanmar and any other country
listed on the Control List.
HOW TO IMPORT
REGULATED GOODS
•
OBTAIN AN IMPORT
PERMIT
1. Register with the Exports
and Imports Control
Bureau
2. Apply for an Import Permit
3. Buy Import Quota if
required from a quota
holder ( it is very difficult to
obtain a quota in Canada)
IMPORTING NON
REGULATED GOODS
WHO YOU WILL BE
DEALING WITH :
• Canada Customs and
Revenue Agency, to obtain
your Business Number.
• Canada Border Services
Agency for all import
documentation and quick
release of products.
GOODS YOU CAN IMPORT
GOODS YOU CAN IMPORT
• Commodities : bulk,
wholesale or industrial
packaging
• Consumer Products :
Wholesale or Retail
packaging
• Equipment and Machinery
COMMODITIES
COMMODITIES
• Can be Food Products, Industrial
raw materials, usually packed in
industrial size packaging.
• The only packaging requirement is
a clear label on Master Case, Tote,
Bag or Drum showing the product
name, its country of origin, weight
per package, producing plant and
registration number : IN BOTH
ENGLISH AND FRENCH
CONSUMER GOODS
CONSUMER GOODS
• Packaging size must be
approved for import into
Canada.
• Clear labeling in BOTH
ENGLISH AND FRENCH
• BAR CODE as per import
requirements in size and
location
• Label has to be approved
before entering the country
• EQUIPMENT AND
MACHINERY
• They have to meet safety
standards set up by Industry
Canada.
• Check import duties, if compete
with Canadian production might
be subject to higher duties.
• Operation must meet Canadian
standards. It has to be approved
by ESA (Electrical Safety
Authority) locally before leaving
the port of entry if machinery
doesn’t have the CSA stamp.
IMPORT PROCESS
IMPORT PROCESS
1. Pre-import
2. Import
3. Post-import
activities
Import
Pre-Import
Post-Import
1. Pre-import
Pre-import
Basic knowledge needed for
international trading:
1.
2.
3.
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. Can your supplier
provide all needed import docs??
LOGISTICS. Deep understanding of
all logistics involved in the exporting
process.
1. Pre-import
Pre-import
4.DOCUMENTATION.
Knowledge of all
documentation and
legal requirements at
your exporting port
and at your importing
port. Be sure you have
all import or export
permits.
1.1. INCOTERMS
What are INCOTERMS :
Terms internationally accepted that provide rules for trading.
International Commercial Terms (INCOTERMS)
Buying or selling INFORMATION based on :
1.
2.
3.
4.
Departure point
Main Carriage Unpaid
Main Carriage Paid
Arrival or Destination Point
1.
2.
3.
4.
Departure point :
EXW (ex works)
Main Carriage Unpaid:
FCA (free carrier)
FAS (free alongside ship)
FOB (free on board)
Main Carriage Paid:
CFR (cost and freight)
CIF (cost, insurance and freight)
CPT (carriage paid to)
CIP (carriage insurance paid to)
Arrival or Destination Port
DAP (delivered at place)
DAT (delivered at terminal)
DDP (delivered duty paid)
1.2. SUPPLIER
1.2. 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
1.3. LOGISTICS
1.3. 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.
Main logistics components before the import
is done involves:
Truck at arrival port to move product to
de-stuffing facility
-
P&D of marine container and de-stuffing
facility cost.
-
Lumpers / laborers needed to unload the
container
1.4. DOCUMENTATION
1.4.DOCUMENTATION The main
documents needed in most cases are:
- BILL OF LADING. Showing you as the
consignee or duly endorsed, all 3
originals to secure ownership. Your
carrier has to provide the CBSA with the
Cargo control Document.
- 2 copies of the Commercial Invoice
- 2 copies of your B3 import declaration
- Packing List with product description.
- Certificate of origin
- Government Issue certificate :
If animal product a zoo sanitary certificate
If vegetable product a Phytosanitary
certificate.
If machinery you need a CSA stamp on the
machine and a product description to
have an accurate tariff.
2. IMPORTING
2. IMPORTING
•
1.
2.
3.
If all previous issues before
loading the container are
covered, the Importing process
comes down to the following
issues:
IMPORT LOGISTICS. Shipping
cost from the delivery port to your
de-stuffing facility.
DOCUMENTATION. As required
at exporting and importing.
INSURANCE. Be sure your
imported products are arriving in
good conditions, if not do you
have a damage insurance ?
2.3. IMPORT DUTIES
2.3. IMPORT DUTIES
These are the IMPORT TAXES
you have to pay for Importing
Products into Canada.
As a norm, if it is not produced in
Canada then is duty free :
avocados, oranges, camels, etc.
You HAVE to consult a Custom
Broker to determine the duties
you have to pay .
2.3. INSURANCE
2.3. INSURANCE
EXTREMELY IMPORTANT
when Importing.
• You don’t want to
find a container full
of damaged goods
after you paid for it.
Or stones instead
of product !!!
3. POST IMPORT ACTIVITIES
3. POST IMPORT ACTIVITIES
• An import operation is not finish
until you are in full control of the
imported goods.
• Be ready for import problems
such us:
- Exporter can’t meet shipping
time frame (you don’t want
Christmas products in February )
- Market jumps up and exporter
wants to cancel the order or
increase price to fulfill contract.
- Goods do not arrived in good
conditions.
3. POST IMPORT ACTIVITIES
3. POST IMPORT ACTIVITIES
• Your best supplier is one that
always ships good products in
time, always :
• Pay your supplier as per the
agreed terms.
• Be sure you are buying the
right quality and quantity
• Always look for an alternative
supplier if you have to honor a
sale contract with the imported
product. (always have a plan
B)
CANADA PERU FREE TRADE
AGREEMENT
•
1) Market access: Better market access through
elimination of import tariffs.
•
2) Service Sector: Better market access for service
providers
•
3) Investment: Promotion of two-way investment
between Canada and Peru
•
4) Government Procurement: Better access to Peru’s
government procurement contracts by Canadian
companies
CANADA PERU FREE TRADE
AGREEMENT
• Peru already eliminated tariffs on 95 % of
current Canadian exports, with most remaining
tariffs to be eliminated over a five- to ten-year
period.
• Products that have a duty-free access to Peru
include wheat, barley, lentils, peas and now all
beef cuts (including bone in), all paper products,
machinery and equipment.
• Canada immediately eliminated 97% of its tariffs
on Peruvian imports. The remainder 3% is being
eliminated over a remainder of five years period.
Be careful…
Extremely careful..
With “Doña Coca”
(be sure who is
your supplier)
Canada Laws
1.
2.
3.
4.
5.
6.
Customs Act
Customs Tariff
The excise Tax Act
Special Import Measures Act
CCRA regulation and policies
Legislation Administer by the CCRA on behalf of other
government departments in relates to importation
CCRA: Canada Customs
and Revenue Agency
Not everybody knows that:
1.
2.
3.
4.
$20 or
less
Mail or postal
Low-value shipments
Moving back to Canada
Regular Commercial
$1,600 or less
(“menos papeleo”)
Casual goods
$1,600 or more
Importing Commercial Goods into
Canada
Es facil: b/l, factura,
•
•
•
BASIC DOCUMENTATION :
B3 mas otros doc’s y
ya! pero en orden!!
– Bill of Lading
– Invoice
– Certificate of Origin
Sanitary Certificates or industry certifications if needed
Form B3, provided by Customs.
AWB
Good Luck with your
Importing Business
Jose Zlatar MBA
GREAT LAKES FOOD
TRADING INC.
Ph. 647-722-2450
Fx. 647-722-2451