Customs Issues and Procedure Part 10.pptx

Important Dates
▶ Assignment 3/21/2024
▶ Midterm 3/27/2024
▶ Final 4/5/2024
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Terminal Learning
Objectives
▶ File an export report/declaration.
▶ List the three ways of submitting
an export declaration to the
CBSA.
▶ Explain the time frames for export
reporting using various modes of
conveyance.
▶ Describe carrier obligations in the
exporting process.
▶ Understand the differences in
exporting goods to the United
States (US) and to countries other
than the US.
▶ Complete a US Customs Invoice.

EXPORTING
IMPORTANCE
▶ Exporting refers to the sale and shipment
of goods and services produced within a
country to foreign markets. It plays a
crucial role in the Canadian economy,
offering several significant benefits:
• Economic Growth: Exporting expands
markets beyond domestic borders,
providing Canadian businesses with
access to a broader customer base.
Increased sales lead to higher revenues,
fostering economic growth.
• Job Creation: Export-oriented industries
create employment opportunities across
various sectors, including manufacturing,
agriculture, technology, and services. As
businesses expand to meet international
demand, they often hire more workers,
reducing unemployment rates and boosting
household incomes.
• Foreign Exchange Earnings: Exporting
generates foreign exchange earnings when
Canadian goods and services are sold
abroad. These earnings can be used to
pay for imports, service foreign debt, or
This Photo by Unknown Author is licensed under CC BY

EXPORTING
IMPORTANCE
• Competitiveness: Participation in global
markets encourages Canadian
businesses to innovate and enhance
their competitiveness. To succeed
internationally, companies often invest
in research and development,
technology upgrades, and process
improvements, leading to higher
productivity levels.
• Diversification of Markets: Relying
solely on domestic markets can leave
Canadian businesses vulnerable to
economic downturns or fluctuations in
consumer demand. Exporting allows
companies to diversify their customer
base, reducing dependency on any
single market and spreading risk.
• Utilization of Resources: Exporting
enables Canadian businesses to fully
utilize their production capacities. By
tapping into international markets,
companies can maintain consistent
levels of production, optimize
economies of scale, and achieve higher

EXPORTING
IMPORTANCE
• Enhanced Revenue Stability: Exporting
provides a buffer against domestic
economic volatility. Even if the
Canadian economy experiences
slowdowns, businesses with a presence
in international markets may continue to
generate revenue, helping to stabilize
their financial performance.
• Cultural Exchange and Diplomacy:
Exporting fosters cultural exchange and
enhances diplomatic relations between
Canada and its trading partners.
Through trade interactions, countries
build mutual understanding, trust, and
cooperation, strengthening diplomatic
ties.
• Support for Rural Communities: Export-
oriented industries, such as agriculture
and natural resources, play a vital role
in supporting rural communities in
Canada. By exporting products grown
or produced in these regions,
businesses contribute to local economic
development and job creation.

EXPORTING GOODS
▶ Exporting is the process of
selling goods or services
produced within a country to
customers located in foreign
markets. It involves various
activities such as
manufacturing, packaging,
marketing, sales, and
shipping, all aimed at
delivering products or services
across national borders.
Exporting serves as a critical
conduit for connecting
Canadian businesses with
international markets, driving
economic growth, fostering
competitiveness, and
strengthening Canada's
position in the global
economy.

EXPORTING GOODS
▶ The benefits of exporting for
Canadian businesses, such as
access to new customers,
increased revenue, and
diversification of markets.
Overall, exporting offers
significant advantages for
Canadian businesses,
including access to new
customers, increased
revenue, diversification of
markets, enhanced
competitiveness, and
opportunities for innovation
and growth. By leveraging
these benefits, Canadian
businesses can expand their
horizons and thrive in the
global marketplace.

EXPORTING GOODS
▶ In the context of Canada, exporting
plays a crucial role in connecting
Canadian businesses with
international markets in several
ways:
• Access to Global Markets: Exporting
allows Canadian businesses to tap
into a vast array of international
markets beyond the borders of
Canada. By reaching out to
customers in different countries,
businesses can diversify their
customer base, increase sales
opportunities, and mitigate risks
associated with relying solely on
domestic demand.
• Expansion Opportunities:
International markets offer
significant opportunities for
Canadian businesses to expand
their operations and scale their
businesses. By exploring new

EXPORTING GOODS
• Utilization of Comparative Advantage:
Canada possesses unique strengths and
resources in various sectors such as
natural resources, agriculture, technology,
and services. Exporting enables Canadian
businesses to leverage their comparative
advantages and capitalize on opportunities
to sell products or services for which they
have a competitive edge on the global
stage.
• Economic Growth and Development:
Exporting contributes to economic growth
and development in Canada by creating
jobs, attracting investments, and
generating foreign exchange earnings. As
businesses expand their export activities,
they stimulate economic activity, support
supply chains, and foster innovation,
thereby driving overall prosperity.
• Enhanced Competitiveness: Participating
in international markets forces Canadian
businesses to become more competitive.
To succeed globally, companies must
innovate, improve product quality, enhance
efficiency, and adapt to evolving consumer
preferences. This process of continuous
improvement boosts competitiveness and

EXPORTING GOODS
• Cultural and Knowledge
Exchange: Exporting facilitates
cultural exchange and
knowledge transfer between
Canada and its trading partners.
Through international trade
interactions, businesses gain
insights into foreign markets,
consumer behaviors, and
emerging trends, fostering
cross-cultural understanding
and collaboration.
• Diplomatic Relations and Soft
Power: Trade relations play a
significant role in shaping
diplomatic ties between
countries. By engaging in
international trade, Canadian
businesses contribute to
building positive relationships
with foreign governments and

EXPORTING
CHALLENGES
▶ While exporting offers numerous benefits
for Canadian businesses, it also presents
several challenges that can hinder their
success in international markets. Some of
the key challenges include:
• Regulatory Compliance: Exporting often
involves navigating complex regulatory
frameworks, including trade agreements,
tariffs, customs procedures, and export
controls. Compliance with varying
regulations across different countries can
be challenging and time-consuming for
Canadian businesses, requiring them to
stay abreast of changing requirements
and ensure proper documentation and
adherence to trade laws.
• Cultural Differences: Cultural differences
can pose significant challenges when
conducting business in foreign markets.
Variations in language, communication
styles, business etiquette, and consumer
preferences may require Canadian
exporters to adapt their marketing
strategies, product offerings, and
negotiation techniques to align with local

EXPORTING
CHALLENGES
• Logistical Complexities: Exporting
involves managing complex logistics,
including transportation,
warehousing, and distribution,
especially when shipping goods
across long distances or to remote
locations. Delays, disruptions, and
logistical bottlenecks can occur due
to factors such as customs clearance,
transportation infrastructure
limitations, and geopolitical instability,
requiring exporters to carefully plan
and coordinate their supply chain
operations.
• Currency Fluctuations and Exchange
Rate Risks: Exporting exposes
Canadian businesses to currency
fluctuations and exchange rate risks,
which can impact the profitability of
international transactions. Sudden
changes in exchange rates may
erode profit margins, increase
transaction costs, and affect pricing

EXPORTING
CHALLENGES
• Market Entry Barriers: Entering new
international markets can be
challenging due to various barriers such
as tariffs, quotas, import restrictions,
and market entry regulations imposed
by foreign governments. Canadian
exporters may encounter bureaucratic
hurdles, licensing requirements, or
discriminatory practices that limit their
access to certain markets, requiring
them to invest time and resources in
market research and strategic planning
to overcome these barriers.
• Payment and Financing Issues: Export
transactions often involve payment and
financing complexities, particularly when
dealing with unfamiliar customers,
foreign currencies, and trade finance
instruments. Canadian exporters may
face challenges related to securing
payment, managing credit risk, and
arranging suitable financing options to
support their export activities,
necessitating the use of international
payment methods, export credit

EXPORTING
CHALLENGES
• Intellectual Property Protection:
Protecting intellectual property (IP)
rights can be challenging when
exporting products or technology to
foreign markets where legal frameworks
and enforcement mechanisms may
differ from those in Canada. Canadian
exporters may face risks of IP
infringement, counterfeiting, or
unauthorized use of their intellectual
assets, requiring them to take proactive
measures to safeguard their IP rights
through patents, trademarks,
copyrights, and contractual agreements.
• Political and Geopolitical Risks:
Exporting can expose Canadian
businesses to political and geopolitical
risks, including trade disputes,
sanctions, diplomatic tensions, and
regulatory changes driven by shifts in
government policies or international
relations. Uncertainties related to
geopolitical developments or global
events may disrupt supply chains,
disrupt market access, or create

EXPORTING GOODS
▶ For goods to be exported as efficiently as
possible, both Canada’s export
regulations and the importing country’s
importing regulations must be considered.
Canadian export regulations require the
Canadian exporter to file an export report
before the goods are loaded onto a
conveyance. The exporter may delegate
the reporting to a service provider, such
as a customs broker, but the exporter is
ultimately responsible for the accuracy of
the information provided in the export
report, which is also known as an export
declaration.
The exporter or their agent submits the
export declaration to CBSA. It includes all
declarations, permits, and documents
pertaining to a specified time period for
goods going to a particular place. Once
the export declaration has been filed, the
exporter or their agent will receive a
confirmation from CBSA that the export
declaration has been made. The
confirmation format varies depending on
the ex-port reporting method used. This
confirmation is referred to as “proof of

EXPORTING GOODS
▶ A carrier must ensure that it has
received the confirmation, the proof
of export reporting, from the
exporter, prior to the loading of the
goods onto a conveyance. With all
modes of conveyance, the carrier
must file a conveyance report; how-
ever, highway carriers and regularly
scheduled flights of air carriers only
file a conveyance report when
requested by CBSA to do so.
Additionally, all carriers except
highway must file a cargo report. A
cargo report can be filed after the
goods have been exported if the
exporter has permission from the
CBSA to submit summary export
declarations or when a carrier has
special permission to do so. The
special carrier permission will be
reviewed later in this chapter (see
“Carrier Reporting”).

EXPORTING GOODS
▶ Filing an export report or declaration in
Canada involves several steps,
depending on the nature of your export
and the regulations involved. Here's a
general guide to help you navigate the
process:
1. Understand the Requirements: Before
exporting goods from Canada, you need
to understand the regulations that apply
to your specific products. Different
goods may have different requirements,
such as permits, licenses, or
restrictions.
2. Register for an Exporter Account: You
may need to register for an exporter
account with the Canada Border
Services Agency (CBSA) if you plan to
export goods regularly. This account
allows you to access electronic services
and submit export declarations.
3. Obtain an Export Declaration Form:
You'll need to obtain an export
declaration form. In Canada, the main
form used for this purpose is the

EXPORTING GOODS
process:
4. Complete the Export Declaration: Fill out
the export declaration form accurately
and completely. You'll need to provide
information such as the exporter's details,
consignee's details, description of goods,
quantity, value, and country of
destination.
5. Determine the Export Control
Classification Number (ECCN): Some
goods may be subject to export controls,
such as dual-use items or goods with
military applications. Determine the
ECCN for your products to ensure
compliance with export control
regulations.
6. Check for Special Requirements: Certain
goods may require special documentation
or permits. For example, agricultural

EXPORTING GOODS
process:
7. Submit the Export Declaration: Once the
export declaration is complete, submit it
to the CBSA electronically through the
appropriate channels. You may use the
Canadian Export Reporting System
(CERS) or other authorized electronic
data interchange systems.
8. Pay Applicable Fees: Depending on the
nature of your export, there may be fees
associated with filing the export
declaration or obtaining permits. Ensure
that any applicable fees are paid promptly
to avoid delays or penalties.
9. Review and Confirm: Before finalizing the
submission, review the export declaration
carefully to ensure accuracy and
compliance with regulations. Once you're
satisfied, confirm the submission.

EXPORTING GOODS
process:
10. Monitor Shipment: Keep track of your
shipment as it leaves Canada and enters
the destination country. Be prepared to
provide additional documentation or
information if requested by customs
authorities.
11. Retain Records: Maintain records of your
export transactions, including export
declarations, invoices, permits, and any
other relevant documentation. These
records may be required for auditing or
compliance purposes.
12. Seek Professional Assistance if Needed:
If you're unsure about any aspect of the
export process or if your goods are
subject to complex regulations, consider
seeking guidance from a customs broker,
trade consultant, or legal expert

EXPORTING GOODS
▶ There are three ways an
exporter or their agent can
submit and report an
export declaration to
CBSA:
1. Canadian Export
Reporting System;
2. G7 Electronic Data
Interchange (EDI); and
3. Summary Reporting.

CANADIAN EXPORT
REPORTING
SYSTEM
▶ Canadian Export Reporting System (CERS)
is a web-based solution that al-lows
exporters or their agents to report exports
electronically from any location that has
internet access. CERS does require
registration before declarations are made;
this allows CERS to provide an enhanced
verification of key data such as the Business
Number and for identification of a business's
customs service provider (if used). When
using CERS, goods must be classified
according to the eight-digit HS Export
Classification code. The Canadian Export
Classification is based on the Harmonized
Commodity Description and Coding System;
however, it is not an exact match in all
cases. Export classification codes can be
found within the CERS look up tool. The
eight-digit HS export code is based on six
international digits, with two additional digits
that have been added to collect export
statistical information for domestic purposes.
CERS is the responsibility of CBSA;
however, statistical information is shared
with Statistics Canada.
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G7 ELECTRONIC
DATA INTERCHANGE
EXPORT
REPORTING
▶ G7 Electronic Data Interchange
(EDI) export reporting is a
method of reporting exports
electronically. G7 EDI includes
data sets, standardized data
elements, and common
definitions for customs import
and export procedures between
G7 countries. It harmonizes the
export data required for the G7
exporting country with the import
data requirements of the
importing G7 country.
Exporters wanting to use G7
EDI must register to do so. More
information is available online.

EXPORT SUMMARY
REPORTING
PROGRAM
▶ The export summary
reporting program allows
authorized exporters to
provide a single, monthly
summary export report after
goods have been exported.
Summary reporting is used
mainly for low-risk goods,
especially if they are in bulk
cargo form. Exporters must
request approval from CBSA
to participate in the summary
export reporting program.
CERS is designed to accept
transmission of the monthly
summary export report.

WHERE TO REPORT
EXPORTS
▶ Certain CBSA offices have been
designated to deal with the exportation
of goods from Canada and are
referred to as export reporting offices.
An export reporting office can be any
CBSA office that has been designated
under the Customs Act3 to receive
export reports and examine goods for
export, and that is open for business at
the time the goods are being reported.
These offices may be inland, at the
border, or at the customs office closest
to the “place of exit” from Canada. The
goods must be available for inspection
at the office where the export
documents are submitted.
Exporters who report their exports
using EDI send their export declaration
directly from their places of business to
CBSA. Both CAED/CERS and G7 EDI
reports are considered submitted to
any export reporting office because
CBSA has EDI access to these
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TIME FRAME FOR
REPORTING
▶ The time frames for export reporting are
as follows :
• For goods exported by mail. Not less
than two hours before the goods are
delivered to the post office from which the
goods will be mailed. Two hours before
the goods are mailed means two hours
before the goods are delivered to any
post office in Canada that accepts mail for
export.
• For goods exported by vessel. Not less
than 48 hours before the goods are
loaded onto the vessel. When the
exporter arranges with a carrier or
customs service provider to transport
goods in the marine mode, it is given a
booking reference number that states
when the goods should be at the carrier’s
premises for loading. The reporting
requirement of not less than 48 hours
before the goods are loaded onto the
vessel means that the goods have been
reported to CBSA not less than 48 hours
before they are given to the marine

TIME FRAME FOR
REPORTING
▶ The time frames for export reporting are as
follows :
• For goods exported by aircraft. Not less than
two hours before the goods are loaded on board
the aircraft. The air carrier will advise the
exporter when the goods should be at their
premises for loading. The reporting requirement
of not less than two hours before the goods are
loaded on board the aircraft means not less than
two hours before the goods are given to the
carrier.
• For goods exported by rail. Not less than two
hours before the railcar on which the goods have
been loaded is assembled to form part of a train
to be exported. Railcars are loaded at different
places and then moved to a rail yard where the
cars are assembled into a train to begin their
journey from Canada. The exporter must report
the goods not less than two hours before the
railcars holding the goods are given to the rail
carrier to be assembled into a train for export.
• For goods exported by any other mode of
transportation. Immediately before the
exportation of the goods. In the case of goods
being exported by highway or by any other mode
not previously mentioned, goods must be
reported immediately before being exported,

CARRIER
REPORTING
▶ Under the Reporting of Exported Goods
Regulations,4 carriers must comply with
specific cargo reporting requirements
enforced by the CBSA. As with imports,
carriers prepare a cargo report, typically a
cargo control document. Carriers must
supply CBSA with the proof of export
reporting made by the exporter. There are
exceptions where some goods do not
have to be reported. When an export
declaration is not required the exporter
must advise the carrier of the exception,
which the carrier will note in their records
and on the cargo report. We will review
the most common exception later in this
chapter (see the heading “Exports to the
US”).
There are different requirements for
carriers who have entered into a
Memorandum of Understanding (MOU)
for carrier reporting with the CBSA and
those who have not. Carriers who sign an
MOU are approved carriers. Under the
MOU, approved carriers have the
privilege of reporting their cargo within
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Moving Your Exports
Forward Focus on
Transportation

CARRIER
REPORTING
▶ Approved carriers are permitted to
submit their cargo reports after the
goods have left Canada. By signing
the MOU, the carrier has agreed to
transport only goods that have been
reported to CBSA.
Approved carriers agree to transport
for export only those goods for which
the exporter has met, or will meet, the
legislated export reporting
requirements. Therefore, the exporter
or their agent must provide proof to the
carrier that the goods have been or—
in the case of goods reported under
the summary reporting program—will
be reported to CBSA. The approved
carrier does not validate the proof of
report; they simply provide the proof of
report as part of their cargo report to
CBSA.
If the proof of export report—or proof
that the goods are exempt from export

EXPORT CONTROLS
AND PERMITS
▶ Export controls are imposed in order
to comply with Canada’s domestic
and foreign policies regarding
national security and defence, as
well as Canada’s obligations under
international treaties and
agreements. There are two types of
export permits: individual and
general.
Individual export permits (IEPs)
require individual applications and
include items such as controlled
goods and goods destined for
specific countries.
General export permits (GEPs) do
not require an application and are a
means of controlling non-regulated
exports and gathering statistics. The
GEP number must be quoted on the
export declaration.
This Photo by Unknown Author is licensed under CC BY-NC-ND

EXPORT CONTROLS
AND PERMITS
▶ Some examples of GEPs are:
1. General Export Permit No
15—eggs.
31—peanut butter.
12—US-origin goods (explained
in detail later in this chapter).
Goods requiring export permits
are listed in either the Area
Control List (ACL) (a list of
countries for which export permits
are required) or the Export Control
List (ECL) (a list of goods
requiring export permits). Global
Affairs Canada administers these
requirements and further details
can be found on its website under
the Export Controls Handbook.

EXPORT CONTROLS
AND PERMITS
▶ Export controls and permits are
regulatory measures implemented
by governments to manage the
export of certain goods,
technologies, and services. These
measures are designed to ensure
national security, prevent the
proliferation of weapons of mass
destruction, protect human rights,
and promote foreign policy
objectives. In Canada, the export
control regime is primarily
governed by the Export and Import
Permits Act (EIPA) and its
associated regulations.
Overall, export controls and permits
play a critical role in safeguarding
national security and promoting
responsible trade practices.
Exporters must understand and
comply with the relevant

EXPORT CONTROLS
AND PERMITS
▶ Here are key aspects of export
controls and permits in Canada:
• Controlled Goods: Certain goods,
technologies, and services are
subject to export controls in Canada.
These include military and strategic
goods, dual-use items with both
civilian and military applications,
nuclear materials and technology, as
well as goods related to human rights
concerns.
• Export Permits: Export permits are
required for the export of controlled
goods from Canada. The issuance of
export permits is governed by the
Export Control List (ECL), which
categorizes controlled items based on
their sensitivity and potential risk.
Exporters must apply for and obtain
an export permit from the appropriate
government department or agency

EXPORT CONTROLS
AND PERMITS
▶ Here are key aspects of export controls and
permits in Canada:
• Licensing Authorities: Different government
departments and agencies are responsible
for issuing export permits for specific
categories of controlled goods. For example:
 Global Affairs Canada is responsible for
permits related to military and strategic
goods, as well as items controlled for reasons
such as nuclear non-proliferation and human
rights.
 The Canadian Nuclear Safety Commission
(CNSC) regulates the export of nuclear
materials and technology.
 The Canada Border Services Agency
(CBSA) may also be involved in
administering export controls and permits at
the border.
• Application Process: Exporters must submit
a permit application to the relevant licensing
authority, providing detailed information
about the goods to be exported, the end-
user or destination, and the intended end-
use. The application process may vary
depending on the type of goods and the

EXPORT CONTROLS
AND PERMITS
▶ Here are key aspects of export controls
and permits in Canada:
• Compliance and Enforcement: Exporters
are responsible for ensuring compliance
with export control regulations and
obtaining the necessary permits before
exporting controlled goods. Failure to
comply with export control laws can result
in penalties, including fines and
imprisonment. Government agencies may
conduct audits, inspections, and
investigations to enforce export control
regulations and prevent violations.
• Due Diligence: Exporters should conduct
due diligence to assess the risks
associated with their exports, including
the potential for diversion to unauthorized
end-users or for use in prohibited
activities. This may involve conducting
background checks on customers,
assessing the end-use of the goods, and
implementing internal compliance
procedures to prevent violations of export
control regulations.

EXPORTS TO THE
US
▶ Most goods that are exported
from Canada and shipped to
countries other than the US
must be listed on an export
declaration and reported to
CBSA upon export.
Canada and the US have a
signed Memorandum of
Understanding that allows the
US to provide Canada with
data on goods that have been
imported into the US from
Canada. In this way, the US
import data become Canada’s
export data, and an export
declaration, in most cases,
does not have to be filed for
goods shipped to the US from

EXPORTS TO THE
US
▶ The following are situations where
export declarations must be filed for
goods exported from Canada to the
US:
• when the exported goods are
trains (railcars and engines); and
• when the exported goods are
restricted goods, including goods
covered under general export
permits (GEPs), going to the US for
consumption. Although permits are
required for the export of certain
softwood lumber products to the US,
the permits do not have to be
presented to CBSA.
Note that although an export
declaration is not required for most
exports to the US, if an officer
requests a report, one must be
provided.

EXPORTS TO THE
US
▶ Exporting goods from Canada to the United
States is a common and important aspect of
the economic relationship between the two
countries. Here's an overview of the process
involved in exporting from Canada to the US:
• Know Your Product: Understand the
classification and regulations applicable to
your product. Some goods may be subject to
specific requirements or restrictions, such as
permits, licenses, or quotas.
• Documentation: Prepare the necessary
documentation for exporting, including:
 Commercial Invoice: Provides details of the
transaction, including the description of
goods, quantity, value, and terms of sale.
 Export Declaration: Depending on the value
and nature of the goods, you may need to
file an export declaration with the Canada
Border Services Agency (CBSA).
 NAFTA Certificate of Origin (if applicable):
The North American Free Trade Agreement
(NAFTA) allows for preferential treatment of
goods traded between Canada, the US, and
Mexico. A NAFTA Certificate of Origin may
be required to claim preferential tariff
treatment.

EXPORTS TO THE
US
• Customs Clearance: Submit the required
documentation to CBSA for customs
clearance. This may include filing electronic
export declarations through the Canadian
Export Reporting System (CERS) or using
other authorized electronic data interchange
systems.
• Transportation and Logistics: Arrange
transportation for your goods to the US.
Choose a suitable mode of transport (e.g.,
truck, rail, air, or sea) based on factors such
as cost, time sensitivity, and the nature of
the goods.
• US Customs Clearance: Upon arrival in the
US, your goods will need to undergo
customs clearance. The US Customs and
Border Protection (CBP) will require
documentation such as the commercial
invoice, bill of lading, and any relevant
permits or certificates.
• Tariffs and Duties: Be aware of any tariffs,
duties, or taxes that may apply to your
goods when importing into the US. The
Harmonized Tariff Schedule (HTS) of the

EXPORTS TO THE
US
• Compliance with Regulations: Ensure
compliance with US import
regulations, including product safety
standards, labeling requirements, and
any other applicable regulations
enforced by agencies such as the
Food and Drug Administration (FDA)
or the Environmental Protection
Agency (EPA).
• Payment and Financing: Arrange for
payment terms with your US buyer
and consider using international trade
financing options if needed, such as
letters of credit or trade finance
facilities.
• Record Keeping: Maintain accurate
records of your export transactions,
including invoices, export
declarations, shipping documents,
and any communication with customs
authorities. These records may be

GENERAL EXPORT
PERMIT NO 12
▶ General Export Permit No 12 (GEP 12) is
used when goods of US origin are ex-ported
from Canada to a country other than the US.
Exportation of these goods from Canada is
allowed, but exportation from Canada of
goods of US origin to a country with which
the US has a trade embargo is not. GEP No
128 states:
1. Subject to section 2, any person may,
under the authority of this Permit, export
from Canada any goods of United States
origin as described in item 5400 of Group 5
of the Schedule to the Export Control List.
2. This Permit does not authorize the
exportation of goods described in section 1
to any country listed in the Area Control List
or to any of the following countries:
(a) Cuba; (b) Democratic People’s Republic
of Korea; (c) Iran; and (d) Syria.
3. Where any goods exported under the
authority of this Permit are required to be
reported in the prescribed form under the
Customs Act, the statement “GEP-12” or
“LGE-12” shall be inserted in the appropriate
field of the report.
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GENERAL EXPORT
PERMIT NO 12
▶ Item 5400 of Group 5 of the Schedule to
the Export Control List,10 referred to in the
context of GEP 12, states:
All goods and technology of United States
origin, unless they are included else-where
in this List, whether in bond or cleared by
Canada Border Services Agency, other
than goods or technology that have been
further processed or manufactured outside
the United States so as to result in a
substantial change in value, form or use of
the goods or technology or in the
production of new goods or technology.
This means goods of US origin exported
from Canada to specific countries other
than the US are exported under the
provisions of GEP 12. However, this GEP
applies only to goods going to countries
other than Cuba, Democratic People’s
Republic of Korea, Iran, and Syria. Goods
of US origin exported from Canada to any
of these countries require an individual
export permit. This ensures that Canada is
not being used to re-export US-origin
goods to countries with which the US has

EXPORTS TO NON-
US LOCATIONS
▶ The following goods exported to non-US
destinations must be reported:
• commercial goods destined for a single
consignee, when the total value of all the
goods in the shipment is Cdn$2,000.00 or
more;
• restricted goods, regardless of their value;
one exception is goods exported under GEP
12 and valued at less than Cdn$2,000.00;
• goods moving in transit through the US to a
third destination, if their value is Cdn$2,000.00
or more;
• goods exported from a bonded warehouse;
imported goods, other than alcohol and
tobacco, that have entered the Canadian
economy on a Form B3 Type 10 entry and
have been placed in a bonded warehouse
must be reported on an export declaration
when they are exported from Canada;
• goods that were in Canada temporarily to be
repaired or have value added to them—where
the valued added is Cdn$2,000.00 or more,
only the repairs or additions are declared as
exports, unless the repairs are the result of a

EXPORTS TO NON-
US LOCATIONS
▶ The following goods exported to non-US
destinations must be reported:
• goods exported from Canada for
processing, or foreign goods that have
been processed in Canada—the valuation
of goods exported after processing in
Canada must include the original cost of
the materials, plus the cost of the
Canadian processing;
• certain non-commercial goods valued at
Cdn$2,000.00 or more, such as gifts,
donations, and personal effects;
• company transfers—for example, of
goods and machinery—valued at
Cdn$2,000.00 or more;
• contractor’s tools and equipment, valued
at Cdn$2,000.00 or more, after having
been in Canada for one year or more;
• non-circulated currency such as non-
monetary gold, unissued bank notes and
securities, and coins not in circulation;

EXPORTS TO NON-
US LOCATIONS
▶ The following goods exported to
non-US destinations must be
reported:
• currency and monetary
instruments;
• goods originally imported into
Canada and being returned to the
supply country for credit;
• leased goods that have been in
Canada for one year or more;
• samples if they have been in
Canada for one year or more; and
• ships’ stores—that is, goods that
are expected to be consumed
during a voyage by non-Canadian
carriers.

EXPORTS TO NON-
US LOCATIONS
▶ Exporting goods to the United States (US)
compared to other countries involves several
differences, including regulatory requirements,
documentation, logistics, market dynamics, and
cultural considerations. Here's a breakdown of
some key differences:
1. Regulatory Requirements:
• The US has its own set of import regulations
administered by agencies such as the US Customs
and Border Protection (CBP), Food and Drug
Administration (FDA), and Environmental
Protection Agency (EPA). Compliance with US
regulations, such as product safety standards and
labeling requirements, is essential.
• Exporting to other countries may involve complying
with different sets of regulations and standards
specific to each destination. This can include
import tariffs, customs procedures, and product
certification requirements.
2. Documentation:
• Exporting to the US typically requires specific
documentation such as a Commercial Invoice, US
Customs Invoice, Bill of Lading, and sometimes a
NAFTA Certificate of Origin if claiming preferential
tariff treatment under NAFTA or the United States-
Mexico-Canada Agreement (USMCA).
• Exporting to other countries may require similar
documentation but may also involve additional
paperwork such as certificates of origin, import
permits, and sanitary or phytosanitary certificates

EXPORTS TO NON-
US LOCATIONS
3. Logistics:
• Transportation and logistics
considerations can differ when
exporting to the US compared to other
countries. Factors such as transit times,
transportation costs, and available
shipping routes may vary depending on
the destination.
• Cross-border logistics between Canada
and the US may benefit from proximity
and well-established trade routes, while
exporting to other countries may
involve longer transit times and more
complex shipping arrangements.
4.Market Dynamics:
• The US market is one of the largest
and most developed in the world,
offering significant opportunities for
exporters. Understanding consumer
preferences, market trends, and
competition is essential for success in
the US market.
• Exporting to other countries requires
market research and understanding of
local consumer behavior, cultural
differences, and business practices.
Adapting products, marketing

EXPORTS TO NON-
US LOCATIONS
5. Tariffs and Trade Agreements:
• Tariffs and trade agreements can
impact exporting to the US and other
countries differently. For example,
exports to the US may benefit from
preferential tariff treatment under
trade agreements like
NAFTA/USMCA.
• Exporting to other countries may
involve navigating different tariff
schedules, trade barriers, and
preferential trade agreements
specific to each destination market.
6. Cultural Considerations:
• Cultural differences can influence
business interactions,
communication styles, and consumer
preferences in different markets.
Building relationships and
understanding cultural nuances are
important for successful international
trade.
• Exporters need to adapt their
marketing messages, branding, and
product offerings to resonate with the

EXPORT
DOCUMENTATION
▶ Since most of Canada’s exports
are destined for the US, we will
concentrate on the paperwork
required to ship goods to that
country. The US Customs
Invoice is the most common
form used and, when correctly
completed by the shipper,
contains all the information
required by US Customs. A US
Customs Invoice is reproduced
at the end of this chapter. Its
fields are self-explanatory (see
Figure 10.2).
A commercial or sales invoice
can be used instead of a US
Customs Invoice as long as all
the data meets the Border
Cargo Selectivity (BCS)

EXPORT
DOCUMENTATION
▶ The following general information is
required:
• a federal employer identification
number (EIN);
• an Internal Revenue Service (IRS)
number;
• the social security number (SSN) of
the US purchaser;
• the shipper’s and consignee’s
complete names and addresses;
• the quantity (number of packages
and weight);
• a complete product description; •
country of origin certificates of all
products;
• currency of settlement (for example,
US or Canadian dollars); and
• terms of sale, payment, and
discount—for example, “payment due
in 30 days.”
A CUSMA certificate of origin is

US CUSTOMS
PROCEDURES
▶ The customs system in the US
requires the filing of entry
documents before it will release
the goods, followed by the filing
of summary documents to
determine the amount of duty
payable.
The filing of entry documents
must be done within 15 days of
the arrival of the goods and must
include the following:
• an entry manifest (Customs
Form 7533);
• evidence of right to make entry;
• a commercial invoice or pro-
forma invoice; and • any other
documents, such as permits, to
determine the admissibility of the
goods.

US CUSTOMS
PROCEDURES
▶ After a review of the entry documents
by US Customs and Border Patrol, the
goods may be released. Within ten
days of the date of release, the entry
summary must be filed. The entry
summary includes:
• the original entry documents;
• the entry summary form (Customs
Form 7501); and
• any other documents necessary to
assess duties, collect statistics, or
determine that all import requirements
have been satisfied.
Once an entry summary has been
accepted, liquidation occurs—that is,
an entry’s rate of duty and amount
payable become final. All liquidations
are supposed to be performed within
314 days from the date of entry. No
entry can be liquidated until 180 days
have passed from the date of entry.
This allows the importer time to make

Get the Most Out Of
Exporting to the United
States

Customs Issues and Procedure Part 10.pptx

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