Customs Issues and Procedure Part 1.pptx

Important Dates
▶ Assignment 3/21/2024
▶ Midterm 3/27/2024
▶ Final 4/5/2024
This Photo by Unknown Author is licensed under CC BY-SA-NC

Terminal Learning
Objectives
▶ Identify the players and
their roles in international
trade.
▶ Identify the legislation
governing international
trade.
▶ Understand a customs
broker’s code of ethics.
▶ Identify the information
contained in a client profile
and know why such a
profile is necessary.

IMPORTANCE OF
INTERNATIONAL
TRADE IN THE
GLOBAL ECONOMY
▶ International trade plays a pivotal role in the
global economy, influencing various
stakeholders such as countries, businesses,
consumers, and workers. Here's a
breakdown of its importance and impact:
• Economic Growth and Development:
International trade allows countries to
specialize in the production of goods and
services in which they have a comparative
advantage, meaning they can produce more
efficiently or at a lower opportunity cost. This
specialization fosters economic growth by
promoting efficiency, innovation, and
productivity enhancements.
• Market Expansion and Access: International
trade opens up new markets for goods and
services. It allows businesses to reach a
broader customer base beyond their
domestic borders, thereby increasing sales
and profits. For consumers, it means access
to a wider variety of products at competitive
prices.

IMPORTANCE OF
INTERNATIONAL
TRADE IN THE
GLOBAL ECONOMY
• Resource Allocation and Efficiency: Trade
enables countries to allocate their resources
more efficiently. Countries can focus on
producing goods and services that they can
produce most efficiently, while importing
those they cannot produce as efficiently. This
leads to optimal resource allocation and
higher overall productivity.
• Job Creation and Skills Enhancement:
International trade creates jobs in various
sectors such as manufacturing, agriculture,
and services. It also facilitates the transfer of
technology, knowledge, and skills across
borders, thereby enhancing the capabilities
of the workforce.
• Competitiveness and Innovation: Trade
exposes businesses to competition from
foreign firms, which encourages them to
innovate, improve quality, and reduce costs
to remain competitive. This drive for
competitiveness ultimately benefits
consumers through better products and
services.

IMPORTANCE OF
INTERNATIONAL
TRADE IN THE
GLOBAL ECONOMY
• Foreign Investment and Capital Flows:
International trade attracts foreign
investment, as companies seek to establish
production facilities or enter new markets.
Foreign direct investment (FDI) flows
contribute to economic growth,
infrastructure development, and job creation
in recipient countries.
• Cultural Exchange and Diplomacy: Trade
fosters cultural exchange and diplomacy
between nations. As countries engage in
trade, they also share ideas, values, and
cultural practices, promoting mutual
understanding and cooperation.
• Global Stability and Peace: Interconnected
economies through trade create mutual
dependencies, which can promote peace
and stability. Countries with strong
economic ties are less likely to engage in
conflicts or wars, as they have a vested
interest in maintaining peaceful relations to

IMPORTANCE OF
INTERNATIONAL
TRADE IN THE
GLOBAL ECONOMY
▶ However, it's essential to
acknowledge that
international trade can also
have challenges and
negative impacts, such as
income inequality,
environmental degradation,
and displacement of workers
in certain industries. Thus,
effective policies and
regulations are necessary to
maximize the benefits of
trade while mitigating its
adverse effects on various
stakeholders.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ The importation of
goods into Canada
involves many players
from both government
and business. Each
player has their own
unique responsibilities
and roles, and it’s
important to be aware of
what these are.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CANADA BORDER
SERVICES AGENCY
The federal agency
responsible for customs
programs,
Intelligence, interdiction and
enforcement functions, and
passenger and inspection
services. CBSA manages
Canada’s borders by
enforcing the laws governing
trade and travel, as well as
international agreements and
conventions.
This Photo by Unknown Author is licensed under CC BY

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CANADA BORDER SERVICES
AGENCY
• CBSA manages Canada’s
borders by enforcing the laws
governing trade and travel, as
well as international agreements
and conventions.
• Many customs officers are called
border services officers (BSOs),
and these are the individuals you
report to when you enter Canada.
BSOs and other customs officers
work in areas such as
management, intelligence,
investigations, detector dog
services, compliance, and client
This Photo by Unknown Author is licensed under CC BY-NC

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
AGENCY
• With respect to commercial goods,
BSOs examine paperwork, or data
sent electronically, for accuracy.
• BSOs can assess penalties under the
Administrative Monetary Penalty
System (AMPS) against those who do
not comply with the legislation
administered by CBSA. his legislation
includes the Customs Act,1 the
Customs Tariff,2 and any associated
regulations. BSOs also enforce
Canadian laws and regulations of
other government departments
(OGDs), such as the Safe Foods for
Canadians Regulations3 on behalf of
the Canadian Food Inspection Agency

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
AGENCY
• The Canada Border Services
Agency (CBSA) operates
various branches and offices
across Canada to manage
customs, immigration, and
border security matters. These
branches and offices are
strategically located at ports of
entry, airports, and other
locations to facilitate the
movement of people and goods
into and out of Canada while
ensuring compliance with
Canadian laws and regulations
This Photo by Unknown Author is licensed under CC BY-SA

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CBSA has a presence at various types of
border crossings, including land border
crossings, airports, seaports, and inland
offices. Some of the key types of CBSA
branches and offices include:
• Land Border Crossing Points: These are
located along the Canada-US border and at
other land entry points. Examples include the
Peace Arch Border Crossing in British
Columbia and the Rainbow Bridge Border
Crossing in Ontario.
• Airport Offices: CBSA maintains offices at
major international airports across Canada,
such as Toronto Pearson International
Airport, Vancouver International Airport, and
Montreal-Pierre Elliott Trudeau International
Airport.
• Seaport Offices: Ports like the Port of
Vancouver and the Port of Halifax have
CBSA offices to oversee the customs and
immigration processes for goods and

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CBSA has a presence at various types of
border crossings, including land border
crossings, airports, seaports, and inland
offices. Some of the key types of CBSA
branches and offices include:
• Inland Offices: In addition to border
crossings and major transportation hubs,
CBSA has inland offices that handle various
administrative and enforcement functions
related to customs and immigration.
• Enforcement and Investigation Units:
CBSA also has specialized units dedicated
to enforcement and investigations, including
the CBSA Intelligence and the CBSA
Criminal Investigations divisions.
• Marine Operations: CBSA also has marine
operations units responsible for border
enforcement and security in Canada's
waters.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CANADA REVENUE AGENCY
• The Canada Revenue Agency (CRA)
administers tax laws for the
government of Canada and for most
provinces and territories. It also
administers social and economic
benefits and incentive programs
delivered through the tax system.
These include the Canada Pension
Plan (CPP), Quebec Pension Plan
(QPP), employment insurance (EI),
and old age security (OAS).
• The minister of national revenue is
responsible for the CRA and is
accountable to Parliament for its
activities, which include the
administration and enforcement of
program legislation such as the

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CANADIAN CUSTOMS BROKERS
Canadian customs brokers are
companies, not individuals, and they act
as intermediaries between importers and
the government on about 80 percent of
import transactions. With authority to act
as agents, they make it easier for
individuals and firms to comply with
complex government legislation.
A customs broker provides expertise to its
clients and ensures that:
• imported goods meet all requirements at
the border and are released according to
regulations;
• goods are delivered as quickly as
possible; and
• payment of the proper amount of duties
and taxes is made, within legislated time
frames.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
• Customs brokers make their clients aware of
programs that can save them duty or taxes,
or that allow for a refund of duties and taxes
that have been paid.
• A customs brokerage firm may be a sole
proprietorship, a partnership of individuals or
corporations, or a corporation, all of which
must be licensed by CBSA in accordance
with the Customs Act and its regulations.
• As a condition of being licensed, a customs
brokerage firm must employ at least one
individual who has passed the Customs
Brokers Professional Examination (CPBE)
and who is subsequently named on the
license.
• The qualified officer is ultimately responsible
for the conduct of the business. Failure to
comply with government regulations may
result in the revocation of the firm’s license to

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
• Remember, customs broker licenses
are issued to companies, not
individuals. Every customs
brokerage company must employ at
least one individual who has passed
the CBPE. This person is the
qualified officer and is named on the
customs broker’s license. The
qualified officer is ultimately
responsible for the conduct of the
business.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here's an overview of what Canadian customs
brokers do and how they operate:
• Customs Clearance: Customs brokers help
importers and exporters navigate the complex
customs clearance process. They prepare and
submit the necessary documentation to customs
authorities on behalf of their clients. This includes
completing customs declarations, calculating and
paying duties and taxes, and ensuring all required
permits and licenses are in order.
• Expertise: Customs brokers have in-depth
knowledge of Canadian customs regulations and
procedures. They stay up-to-date with changes in
customs laws and tariff classifications, ensuring
that goods are classified correctly and that their
clients comply with all relevant regulations.
• Documentation: Brokers assist with the preparation
and submission of various customs-related
documents, such as bills of lading, certificates of
origin, and invoices. They also help clients obtain
necessary permits and licenses for specific types
of goods.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here's an overview of what Canadian
customs brokers do and how they operate:
• Tariff Classification: One of the critical
tasks of a customs broker is correctly
classifying imported goods according to the
Canadian Customs Tariff. This determines
the applicable duty rates and regulations
that apply to those goods.
• Valuation: Customs brokers assist in
determining the value of imported goods for
customs purposes. This can be a complex
process, particularly for transactions
involving related parties or goods with
added costs.
• Compliance and Audits: Brokers help clients
maintain compliance with customs
regulations and reduce the risk of audits
and penalties. They can provide advice on

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here's an overview of what Canadian customs
brokers do and how they operate:
• Trade Agreements: Customs brokers can help
clients take advantage of preferential trade
agreements, such as the Canada-U.S. Free Trade
Agreement or the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP),
which can reduce or eliminate customs duties for
qualifying goods.
• Communication: Brokers serve as intermediaries
between clients and customs authorities. They may
communicate with customs officers to resolve
issues, answer inquiries, or provide additional
information when required.
• Representation: Customs brokers can represent
their clients during customs audits or investigations,
helping to resolve any disputes or issues that may
arise.
• 10. Record Keeping: Customs brokers often
maintain records of their clients' import and export
transactions for a specified period, as required by

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CANADIAN CUSTOMS
BROKERS
• It's essential for businesses
involved in international trade,
whether importing or exporting,
to consider working with a
licensed customs broker to
ensure smooth and compliant
cross-border transactions.
Customs brokers in Canada
must be licensed by the Canada
Border Services Agency (CBSA)
to provide their services legally.
Businesses can search for
licensed customs brokers in their
area through the CBSA website

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
BROKERS
• The Certified Customs
Specialist (CCS) and the
Certified Trade Compliance
Specialist (CTCS) are
professional designations or
certifications offered by different
organizations in Canada and the
United States. These
certifications are designed for
individuals working in the field of
customs and trade compliance to
enhance their knowledge and
expertise in areas related to
international trade, customs
This Photo by Unknown Author is licensed under CC BY-NC-ND

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Certified Customs Specialist (CCS):
• Offered by: The CCS designation is offered by
the Canadian Society of Customs Brokers
(CSCB), a professional association in Canada
dedicated to customs and trade compliance.
• Purpose: The CCS designation is designed to
recognize individuals who have achieved a high
level of knowledge and expertise in Canadian
customs and international trade regulations.
• Requirements: To earn the CCS designation,
individuals must complete a series of courses and
pass corresponding exams offered by the CSCB.
These courses cover various aspects of customs
and trade compliance, including tariff
classification, valuation, trade agreements, and
other relevant topics.
• Benefits: CCS certification can enhance an
individual's career prospects in the field of
customs and international trade by demonstrating
their commitment to excellence and expertise in
the subject matter.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Certified Trade Compliance Specialist
(CTCS):
• Offered by: The CTCS designation is offered by
the Canadian Society of Customs Brokers
(CSCB) as well, focusing on trade compliance.
• Purpose: The CTCS designation is intended to
recognize professionals who possess a deep
understanding of trade compliance principles
and practices, which includes customs,
import/export regulations, and trade laws.
• Requirements: Similar to the CCS certification,
individuals seeking the CTCS designation must
complete a series of courses and pass
corresponding exams offered by the CSCB.
These courses cover various aspects of trade
compliance, including risk management, audit
preparation, and compliance strategy.
• Benefits: Earning the CTCS certification
demonstrates a commitment to trade compliance
expertise and can be valuable for individuals
involved in import/export activities, supply chain
management, and international trade compliance

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
BROKERS
• Both the CCS and CTCS
certifications are recognized in
Canada and are valuable for
professionals in customs
brokerage, logistics, trade
compliance, and related fields.
They signify a commitment to
maintaining a high level of
knowledge and compliance in a
complex and ever-changing field,
which can be beneficial for both
individuals and their employers.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ SUB-AGENTS
• A sub-agent is a licensed customs
broker. The sub-agent is appointed
by one customs broker to act on its
behalf at a CBSA port where the
prime customs broker does not have
an office.
• Since almost all release requests are
transmitted electronically, and a
customs broker can send data for
release of goods at nearly all
customs offices, there are few
instances where customs brokers
require the assistance of a sub-
agent. A sub-agent is used when
paper documentation, rather than
electronic data, must be presented or

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ General Agency Agreement
• A General Agency Agreement for customer
brokers is a specific type of agency agreement
commonly used in the insurance industry. In
this context, a "customer broker" typically refers
to an insurance agent or broker who represents
clients (customers) in obtaining insurance
policies and coverage. The agreement outlines
the terms and conditions under which the
customer broker will act on behalf of their
clients in acquiring insurance products and
services.
• The purpose of this type of agency agreement
is to formalize the relationship between the
customer broker and the insurance buyer,
ensuring that both parties understand their
rights and responsibilities. It's crucial for
protecting the interests of the insurance buyer
and ensuring compliance with insurance
regulations. As with any legal document, it's
advisable to seek legal counsel when drafting
or entering into a General Agency Agreement
for customer brokers to ensure that it complies

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here are some key elements that are typically
included in a General Agency Agreement for
customer brokers:
• Parties Involved: Identify the parties involved,
which include the customer broker and the
insurance buyer. Provide their legal names,
contact information, and any relevant business
details.
• Scope of Authority: Define the scope of the
customer broker's authority. This may include
the types of insurance products they are
authorized to sell or the specific services they
will provide on behalf of the insurance buyer.
• Compensation: Detail how the customer broker
will be compensated for their services. This may
include commissions, fees, or other forms of
compensation. Specify when and how payments
will be made.
• Duration: Specify the duration of the agency
relationship, including the start and end dates. It

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here are some key elements that are typically
included in a General Agency Agreement for
customer brokers:
• Duties and Responsibilities: Clearly outline the
duties and responsibilities of the customer
broker. This may include assisting the insurance
buyer in selecting appropriate insurance
coverage, providing advice, and helping with
claims.
• Conflicts of Interest: Address any potential
conflicts of interest that may arise during the
agency relationship. Ensure that the customer
broker acts in the best interests of the insurance
buyer.
• Confidentiality: Include provisions regarding
the confidentiality of the insurance buyer's
information and any sensitive information shared
during the course of the agency relationship.
• Compliance: Ensure that the customer broker
complies with all relevant laws and regulations

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here are some key elements that are
typically included in a General Agency
Agreement for customer brokers:
• Termination: Specify the conditions
under which either party can terminate
the agreement, including any notice
requirements.
• Governing Law: Indicate the jurisdiction
and governing law that will apply to the
agreement, which is essential in case of
disputes.
• Signatures: Both the customer broker
and the insurance buyer should sign and
date the agreement to make it legally
binding. Notarization may be necessary in
some jurisdictions.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Canadian Importers
• Canadian importers are individuals,
businesses, or organizations located in
Canada that engage in the purchase and
importation of goods and products from
foreign countries for resale, distribution, or
use within Canada. Importers play a
crucial role in the Canadian economy, as
they contribute to the availability of a wide
range of products for consumers and
businesses across the country.
• Canadian importers play an integral role in
the country's economy by ensuring a
steady flow of goods into the domestic
market. However, it's important for
importers to stay informed about evolving
trade policies, customs regulations, and
market trends to remain competitive and
compliant with Canadian laws and
standards.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here are some key points and considerations
related to Canadian importers:
• Diverse Range of Products: Canadian importers
bring in a diverse range of products, including
consumer goods, industrial equipment, raw
materials, electronics, clothing, food, and much
more. These products come from various
countries around the world.
• Regulations and Compliance: Importers must
adhere to Canadian import regulations and
customs requirements. This includes ensuring
that imported products meet Canadian safety,
quality, and labeling standards. Importers are also
responsible for paying any applicable duties and
taxes on imported goods.
• Customs Documentation: Importers are
required to complete customs documentation,
including a bill of lading or air waybill, commercial
invoice, and any other required documents such
as certificates of origin or permits. This
documentation is essential for customs clearance.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here are some key points and considerations related to
Canadian importers:
• Customs Brokerage: Many importers work with
customs brokerage firms or experts who specialize in
navigating the complex customs procedures. These
professionals assist with the proper documentation,
classification, and valuation of goods, ensuring
compliance with customs regulations.
• Tariffs and Duties: Importers need to be aware of the
tariffs and duties associated with their imported goods.
Canada has various trade agreements in place that may
affect duty rates, such as the Canada-United States-
Mexico Agreement (CUSMA) and the Comprehensive
and Progressive Agreement for Trans-Pacific
Partnership (CPTPP).
• Risk Management: Importers may face risks related to
currency exchange rates, supply chain disruptions, trade
disputes, and changes in trade policies. Effective risk
management strategies are crucial for importers to
mitigate these challenges.
• Distribution and Sales: After importing goods, many
businesses engage in distribution and sales activities,
whether through retail stores, e-commerce platforms,
wholesalers, or other channels. Marketing, pricing, and

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Here are some key points and considerations
related to Canadian importers:
• Trade Partnerships: Importers often establish
trade partnerships and relationships with
international suppliers and manufacturers. These
relationships can be vital for securing reliable
sources of products and negotiating favorable
terms.
• Compliance with Environmental and
Sustainability Standards: Importers may also be
subject to environmental and sustainability
regulations, including requirements related to
product packaging, recycling, and eco-friendly
practices.
• Logistics and Supply Chain Management:
Managing the logistics and supply chain for
imported goods is critical. This includes
transportation, warehousing, inventory
management, and timely delivery to customers.
• Market Research: Successful importers conduct
market research to identify trends, consumer

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Carriers
• Canadian carriers refer to transportation
companies or carriers based in Canada that
provide various transportation services to
move goods, people, or cargo within
Canada and internationally. These carriers
play a vital role in the country's
transportation and logistics infrastructure,
facilitating the movement of products,
passengers, and commodities across the
country and across borders.
• Canadian carriers operate within a complex
regulatory environment that includes safety
standards, environmental regulations, and
international trade agreements. They are
essential for supporting Canada's trade and
commerce, as well as providing
transportation options for Canadians and
international travelers. These carriers also
contribute significantly to the country's
economic growth and connectivity.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Carriers
Here are some key categories of Canadian
carriers:
• Trucking Companies: Canadian trucking
companies are responsible for transporting goods
by road. They operate a wide range of vehicles,
from small delivery vans to long-haul tractor-trailers,
and provide services for local, regional, and national
distribution. These carriers are essential for the
transportation of goods to and from manufacturing
facilities, distribution centers, and retailers.
• Railway Companies: Canada has several major
railway companies, including Canadian National
Railway (CNR) and Canadian Pacific Railway
(CPR). These companies operate extensive rail
networks that transport goods such as minerals,
agricultural products, and containers over long
distances within Canada and to international
destinations, including the United States.
• Air Carriers: Canadian air carriers, both passenger
and cargo airlines, provide domestic and
international air transportation services. These
carriers operate at major airports across Canada

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Carriers
carriers:
• Maritime Shipping Companies: Maritime carriers
handle the transportation of goods by sea, operating
container ships, bulk carriers, and other vessel
types. Canadian ports and terminals facilitate the
import and export of goods to and from international
markets.
• Courier and Package Delivery Services:
Companies like Canada Post and private courier
services handle the delivery of mail and packages,
including e-commerce shipments, within Canada
and around the world.
• Public Transit Agencies: Public transit agencies
operate buses, subways, light rail, and other forms
of public transportation in cities and regions across
Canada, providing essential services for daily
commuters.
• Pipeline Companies: While not typically referred to
as carriers, pipeline companies transport liquid or
gaseous products, such as oil, natural gas, and

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Carriers
carriers:
• Freight Forwarders: Freight forwarders are
intermediaries that arrange the transportation
of goods on behalf of shippers. They work
with various carriers to coordinate the
movement of cargo, manage logistics, and
handle customs documentation.
• Logistics and Supply Chain Companies:
These companies offer a range of services,
including warehousing, distribution, and
supply chain management, to ensure the
efficient flow of goods within Canada and
across borders.
• Passenger Transportation Services:
Beyond public transit agencies, various
passenger carriers, including taxi companies,
ride-sharing services, and long-distance bus
companies, offer transportation options for

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ Vendors
• Vendors are the companies outside Canada
that have sold or shipped goods to
importers in Canada. A vendor may be
referred to as a foreign supplier or seller
and may be shown as “sold by,” “remit to,”
“consignor,” or “shipper” on an invoice.
• No matter how they are referred to, this
party is shown in the field labelled “vendor”
on a Canada Customs Invoice (CCI). The
vendor may also be a foreign exporter, but
the term “exporter” is usually reserved for
those sending the goods, not selling them.
• Many vendors are not familiar with
Canada’s import laws and regulations;
nonetheless, they are still expected to
supply the proper documents to the
importer or to the customs broker so that
the goods may be imported into Canada.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ FREIGHT FORWARDERS
• Freight forwarders arrange for the
movement of goods by a carrier and
prepare all necessary documents to
ensure that the goods arrive at the
correct destination.
• Constantly changing information on such
things as mode of transportation,
transportation availability, capacity, cost,
and best shipping routes makes it
necessary for the freight forwarder to
remain up to date on the import and
export requirements of many countries.
• Some freight forwarders are also
licensed customs brokers and thereby
combine the handling and movement of
goods with their subsequent release and
payment of duty.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ FOREIGN CUSTOMS BROKERS
• Foreign customs brokers are the
foreign counterparts to Canadian
customs brokers. Because the laws
within each country are complex and
reflect national priori-ties, it is unusual
to find any one broker sufficiently
knowledgeable in both foreign and
Canadian laws to give a client
assistance in both.
• For this reason, foreign customs
brokers aid the foreign person or
company entering goods into a foreign
country.
• Just like Canadian customs brokers,
foreign customs brokers have sufficient
knowledge of the import and export
laws of their countries to provide the

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ MULTINATIONAL
COROPORATIONS
Multinational corporations (MNCs)
are large companies that operate in
multiple countries, with production
facilities, offices, and other assets
located in various nations around
the world. Overall, while
multinational corporations
contribute significantly to economic
development and global integration,
they also raise important ethical,
social, and environmental
considerations that require careful
management and oversight by
governments, civil society, and
other stakeholders.

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ These corporations play a significant
role in the global economy and have a
considerable impact on various
stakeholders:
• Economic Growth and Development:
MNCs contribute to economic growth
by investing in new markets, creating
jobs, and generating tax revenues.
Their presence often leads to the
transfer of technology, skills, and
knowledge, which can enhance
productivity and stimulate innovation in
host countries.
• Global Trade: MNCs are major players
in international trade, as they often
engage in both importing and
exporting goods and services. They
establish global supply chains,
sourcing raw materials and
components from different countries

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ These corporations play a significant role in
the global economy and have a considerable
impact on various stakeholders:
• Investment and Capital Flows: Multinational
corporations drive foreign direct investment
(FDI) flows by establishing subsidiaries, joint
ventures, or acquiring local companies in
foreign markets. This investment contributes
to infrastructure development, job creation,
and economic stability in host countries.
• Employment and Labor Practices: MNCs
create job opportunities in host countries,
providing employment to millions of people
worldwide. However, their labor practices
and treatment of workers can vary
significantly, leading to debates about issues
such as working conditions, wages, and
labor rights.
• Technology Transfer and Innovation: MNCs
often bring advanced technologies and
management practices to host countries,
facilitating technology transfer and
knowledge spillovers. This can help local

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ These corporations play a significant role in the
global economy and have a considerable impact
on various stakeholders:
• Market Power and Competition: Multinational
corporations can wield significant market power
due to their size and global reach. This can lead
to concerns about monopolistic behavior, unfair
competition, and market domination, which may
require regulatory interventions to ensure a level
playing field.
• Environmental Impact: MNCs' operations can
have environmental consequences, such as
pollution, resource depletion, and habitat
destruction. Efforts to mitigate these impacts,
including adherence to environmental
regulations and sustainable practices, are
increasingly important for both MNCs and the
communities in which they operate.
• Social and Cultural Influence: MNCs often have
a substantial influence on local cultures and
societies through their marketing, advertising,
and corporate social responsibility (CSR)
activities. They may also face scrutiny for their
involvement in controversial issues or practices
that conflict with local norms and values.

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The World Trade Organization
(WTO)
The World Trade Organization (WTO) is an
international organization that regulates
and facilitates international trade between
nations. Established on January 1, 1995,
the WTO replaced the General Agreement
on Tariffs and Trade (GATT), which had
been in place since 1948. The primary
purpose of the WTO is to provide a
framework for negotiating trade
agreements and resolving disputes among
its member countries.
The WTO currently has 164 member
countries, accounting for the vast majority
of global trade. While the organization has
been instrumental in promoting
international trade and economic
development, it has also faced criticism
and challenges, including concerns about

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The World Trade Organization
(WTO)
Key features of the WTO include:
• Trade Negotiations: The WTO provides
a forum for its member countries to
negotiate trade agreements aimed at
reducing barriers to trade, such as
tariffs and quotas. These negotiations
cover a wide range of sectors, including
goods, services, and intellectual
property.
• Dispute Settlement: The WTO operates
a dispute settlement mechanism to
resolve disputes between member
countries regarding the interpretation
and application of WTO agreements.
This mechanism is designed to ensure
that trade disputes are settled
impartially and based on established

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The World Trade Organization (WTO)
• Trade Monitoring and Surveillance: The WTO
monitors and analyzes global trade patterns
and policies, providing members with
information and data on trade flows, tariffs, and
other trade-related measures. This helps to
promote transparency and facilitate informed
decision-making by member countries.
• Trade Capacity Building: The WTO provides
technical assistance and training to help
developing countries build their capacity to
participate effectively in international trade.
This assistance includes support for trade-
related infrastructure, institutions, and
regulatory frameworks.
• Trade Policy Review: The WTO conducts
regular reviews of member countries' trade
policies and practices through the Trade Policy
Review Mechanism (TPRM). These reviews
provide a platform for member countries to
discuss their trade policies and exchange
information on their trade regimes.

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The World Trade Organization (WTO)
• Principles of Non-Discrimination: The
WTO is based on the principles of non-
discrimination and most-favored-nation
(MFN) treatment. This means that member
countries are generally required to treat
trading partners equally and not to
discriminate between them in trade
matters.
• Special and Differential Treatment: The
WTO recognizes the differing needs and
circumstances of developing countries and
provides for special and differential
treatment to assist them in their trade
development efforts. This includes longer
transition periods for implementing trade
agreements and technical assistance to
address capacity constraints.

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The International Monetary Fund (IMF)
The International Monetary Fund (IMF) is an
international financial institution established in
1944 at the Bretton Woods Conference,
alongside the World Bank. Its primary purpose
is to promote global monetary cooperation,
exchange rate stability, balanced international
trade, and sustainable economic growth. The
IMF serves as a lender of last resort to
member countries experiencing balance of
payments difficulties, providing them with
financial assistance and policy advice to
address economic challenges.
The IMF currently has 190 member countries,
encompassing almost the entire global
community. While the IMF has been
instrumental in stabilizing economies and
providing financial assistance during times of
crisis, it has also faced criticism and
controversy, particularly regarding the
conditions attached to its loans, its impact on
social welfare programs, and its influence on

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The International Monetary Fund
(IMF)
Key functions and roles of the IMF include:
• Surveillance: The IMF conducts regular
assessments of global and regional
economic developments through its
surveillance activities. It monitors
member countries' economic policies,
exchange rates, and financial systems
to identify potential risks and
vulnerabilities to the global economy.
• Financial Assistance: The IMF provides
financial assistance to member
countries facing balance of payments
problems, such as currency crises,
external debt pressures, or fiscal
imbalances. This assistance typically
comes in the form of loans or credit
lines aimed at stabilizing the country's

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The International Monetary Fund (IMF)
• Policy Advice and Technical Assistance: The IMF
offers policy advice and technical assistance to
member countries to help them design and
implement sound economic policies. This
includes advice on fiscal policy, monetary policy,
exchange rate management, financial sector
reforms, and structural adjustments to promote
economic stability and growth.
• Capacity Development: The IMF supports
capacity development efforts in member countries
to strengthen their institutions, policies, and
governance frameworks. This includes training
programs, workshops, and other initiatives aimed
at enhancing the capacity of policymakers,
central banks, finance ministries, and other
relevant institutions.
• Research and Analysis: The IMF conducts
research and analysis on a wide range of
economic issues, including macroeconomic
trends, financial stability, exchange rate regimes,
and global economic integration. Its research
findings and publications contribute to the

KEY PLAYERS IN
INTERNATIONAL
TRADE
▶ The International Monetary Fund
(IMF)
• Global Financial Stability: The IMF
plays a crucial role in promoting global
financial stability by monitoring
systemic risks, coordinating
international responses to financial
crises, and providing policy advice on
financial regulation and supervision.
• Governance and Representation: The
IMF's governance structure provides
representation for member countries
based on their relative economic size
and contributions to the organization.
Major decisions are made by the IMF's
Executive Board, which consists of
representatives from member
countries.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ OVERVIEW OF THE
LEGISLATION
• Some of the main acts
administered by CBSA that
affect the importation of goods
are:
• the Customs Act;
• the Customs Tariff and Customs
Tariff Schedule;
• the Excise Act, 2001;
• the Excise Act;
• the Excise Tax Act; and
• the Special Import Measures
Act.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CUSTOMS ACT
• The Customs Act is the
legislative authority for the
administration and enforcement
of the laws relating to the
importation and exportation of
goods crossing Canadian
borders, as well as the
collection of duty. This Act also
gives BSOs the authority to
examine, search, detain, and
seize goods.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CUSTOMS TARIFF
• The Customs Tariff is the
legislative authority for the
imposition of, and relief from,
the payment of duty.
• The Customs Tariff includes a
list of countries with their
respective tariff treatments, the
General Rules for the
Interpretation of the Harmonized
System (GRI), and the
Administrative Guidelines.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CUSTOMS TARIFF
• This Act includes the Customs
Tariff Schedule. This is the
coding system for imported
goods and is formally called the
Harmonized Commodity
Description and Coding System.
• Raters (individuals responsible
for assigning the correct tariff
classification to goods imported
into Canada) use the tariff daily.
• The Customs Tariff and the
Customs Tariff Schedule are
available online.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ EXCISE ACT, 2001
• The Excise Act, 2001 is the legislation
for the collection of excise duty on
spirits, wine, and tobacco products that
are manufactured in Canada or imported
into Canada.
• Excise duty is ordinarily charged on
goods produced within a country, rather
than on goods that are imported.
However, in order that imported and
domestic goods are treated equally,
excise duty is collected on imported
goods in an amount that would be
collected if they were produced in
Canada.
• The Excise Act, 2001 is also the
legislation for the treatment of ships’
stores. These are goods that are used

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ EXCISE ACT
• The Excise Act is the legislation
for the collection of excise duty
on beer that is manufactured in
Canada or imported into
Canada.
• The excise duty collected on
imported beer is equivalent to
the excise duty that would be
collected if the beer had been
produced in Canada.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ EXCISE TAX ACT
• The Excise Tax Act grants the
authority to charge, collect, and
administer the Goods and
Services Tax (GST), or, in some
provinces, the Harmonized Sales
Tax (HST), on goods and
services
• The Excise Tax Act also
provides for the imposition and
collection of a number of excise
taxes on other goods such as
gasoline, diesel fuel, and
automobile air conditioners, both
imported and domestic.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ GOODS AND SERVICES TAX
• The Goods and Services Tax
(GST) is a tax that is collected
by vendors and businesses,
including customs brokers, at
each level in the production and
distribution chain, with the
greatest amount paid by the
final consumer or user.
• The majority of goods imported
into Canada are subject to GST.
However, some goods and
services are non-taxable,
exempt, or zero-rated, and tax

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ EXEMPT SUPPLIES
• Exempt supplies (goods and
services) are those on which
there is no GST paid by the
purchaser and the registered
supplier does not collect or
charge tax. Exempt sup-plies
are listed in schedule V of the
Excise Tax Act. Some
examples of exempt supplies
are real property, health care
services, educational
services, and child and
personal care services.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ ZERO-RATED SUPPLIES
• Zero-rated supplies (goods and
services) are those on which
there is no GST paid by the
purchaser; however, the
registered supplier of the goods
may claim an input tax credit
(ITC) for tax paid on purchases
that were used to create the
zero-rated supply. Zero-rated
supplies are listed in schedule VI
of the Excise Tax Act and
include prescription drugs and
biologicals, basic groceries,
medical and assistive devices,
exports, and financial services.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ INPUT TAX CREDITS
• Businesses, like other consumers,
are charged GST when they
purchase goods and services.
However, when a business is
registered for the GST, it is entitled
to subtract the GST that it has paid
(ITC) from the tax that it has
collected. The difference between
the two is either a negative amount
(refund) or an additional amount of
tax that must be remitted to the
federal government for each
reporting period. This method
ensures that the GST applies only on
the value of sales to the final
consumer. By having the end
consumer pay the GST, the

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ HARMONIZED SALES TAX
• The provinces that collect the
Harmonized Sales Tax (HST)
are Ontario, Prince Edward
Island, Nova Scotia, New
Brunswick, and Newfoundland
and Labrador. The HST is a
blended tax comprising two
taxes: GST and provincial tax.
HST is collected on casual
importations only, at various
rates determined by the
province. Casual importations
are goods destined for individual
use and not intended for sale or
commercial, institutional,

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ SPECIAL IMPORT MEASURES ACT
• The Special Import Measures Act
(SIMA) is a Canadian law that provides
a framework for addressing unfair trade
practices related to the importation of
goods into Canada. SIMA is designed
to protect Canadian industries from
injury caused by the dumping and
subsidizing of foreign goods in the
Canadian market.
• The Special Import Measures Act is an
important tool for Canada to respond to
unfair trade practices and protect its
domestic industries from harm caused
by unfairly priced or subsidized imports.
It helps maintain fair competition in the
Canadian market while adhering to
international trade rules.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
Key features include:
• Dumping: SIMA addresses the practice of
"dumping," which occurs when foreign producers
sell goods in Canada at prices lower than their
domestic market prices or below the cost of
production. This can harm Canadian industries by
undercutting their prices and reducing their market
share.
• Subsidies: The act also addresses the issue of
subsidies provided by foreign governments to their
domestic industries. Subsidized imports can distort
competition and negatively impact Canadian
industries.
• Injury Assessment: SIMA establishes a process
for determining whether the dumping or subsidizing
of imports has caused injury or harm to Canadian
producers. The Canadian International Trade
Tribunal (CITT) plays a key role in this assessment
by conducting investigations and making
determinations based on evidence provided by
interested parties.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
• Imposition of Duties: If it is determined that
dumped or subsidized imports are causing
injury to Canadian industries, anti-dumping and
countervailing duties may be imposed on the
imported goods to level the playing field and
protect domestic producers.
• Review and Appeals: The Special Import
Measures Act includes provisions for reviews
and appeals, allowing interested parties to
challenge CITT's decisions or request reviews
of duty levels.
• Duration of Measures: Measures imposed
under SIMA are typically temporary and subject
to periodic reviews to ensure they remain
necessary to address the injury to Canadian
industries.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ SPECIAL IMPORT MEASURES
ACT
• Public Interest Considerations: In
making its determinations, the CITT
is required to consider the public
interest, including factors such as
consumer choice and the economic
impact on downstream industries.
• International Trade Agreements:
SIMA operates within the framework
of Canada's international trade
agreements and obligations,
including those under the World
Trade Organization (WTO).

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CODE OF CONDUCT
 ETHICS:
• What are ethics? Like good manners,
ethics are part of our social code of
behavior. The dictionary defines
“ethics” as a moral code, an essential
moral quality, or con-formation to the
standards of conduct of a given
profession. Some will argue that moral
standards vary according to personal
interpretations, cultural background,
and even prevailing conditions.
Prevailing conditions can include, for
example, political unrest, when it can
be common for ordinarily ethical
individuals to act in an unethical
manner.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CODE OF CONDUCT
 CONFIDENTIALITY OF
INFORMATION:
• The Customs Act allows CBSA to
ask an importer for information
regarding the goods they are
importing. This information may be
confidential and should not be
disclosed by CBSA to others,
especially potential competitors.
The importer is required by law to
disclose this information to CBSA
and does so trusting that CBSA and
the customs broker will conduct
themselves as professionals and
respect the importer’s

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CODE OF CONDUCT
 CONFLICTS OF INTEREST:
• It is unethical to participate in a
transaction when there is a
personal interest, financial or
otherwise, in an enterprise or a
product. If there is a conflict, one
should absent oneself from the
transaction.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CODE OF CONDUCT
 SMUGGLING BY AN EMPLOYEE:
• Under the Customs Act, the smuggling of
goods is illegal. Those found guilty of
smuggling may be given a criminal record, and
an employer might find that it has no choice but
to restrict the type of work it entrusts to a
person with a criminal record.
• The term “smuggling” has a wide application,
covering activities from deliberate efforts to
move goods across the border without
declaration to misrepresenting the true value or
description of goods on an import declaration.
Each charge may carry a different penalty as
far as the law is concerned, but the
consequence is usually a damaged reputation.
• Those in the customs industry, no matter their
role, should ensure that they do not allow
themselves to be in a position to be charged
with smuggling; they should be “squeaky clean.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CODE OF CONDUCT
 RELATIONSHIPS AMONG CUSTOMS
BROKERS, CBSA, CARRIERS,
CLIENTS, AND COLLEAGUES:
• The movement of goods across borders
requires accurate reporting by a number of
people. Not all people have the same
objective and there is potential for lack of
cooperation.
• There is no easy or surefire way to avoid
these conflicts, but maintaining
professional conduct will help reduce the
frequency and seriousness of such events.
Remember to treat others as you want to
be treated. Exercise patience and provide
information that will help the situation.

THE ROLES OF THE
PLAYERS IN
INTERNATIONAL
TRADE
▶ CODE OF CONDUCT
 RESPONSIBILITIES TO EMPLOYERS,
CBSA, CLIENTS, AND COLLEAGUES:
• Employees of customs brokers have a
number of responsibilities. The interests of
one’s clients take top priority, except when
those interests' conflict with the laws or the
regulations administered by CBSA.
• All customs brokerage firms maintain
information about their clients. Clients are
the businesses or individuals who have
signed a General Agency Agreement with
the broker to allow the customs brokerage
firm to act as their agent.
• It is critical that a customs broker reviews a
client’s profile before every trans-action,
even though it may have processed that
client’s paperwork many times before.

GOVERNMENT ROLE
IN INTERNATIONAL
TRADE
▶ Governments play a crucial role
in regulating international trade
through a variety of policies,
tariffs, and trade agreements.
Overall, governments play a
central role in shaping the global
trade environment through their
trade policies, tariffs, and trade
agreements. Effective trade
regulation requires balancing
the interests of different
stakeholders, promoting
economic growth and
development, and ensuring fair
and transparent trade practices
in the global marketplace.

GOVERNMENT ROLE
IN INTERNATIONAL
TRADE
▶ Here's an overview of their roles and
the mechanisms they use:
• Tariffs and Import Controls:
Governments often impose tariffs,
which are taxes on imported goods, to
protect domestic industries, generate
revenue, or achieve other policy
objectives. Tariffs can be specific
(based on quantity), ad valorem
(based on value), or a combination of
both. Import controls, such as quotas
or licensing requirements, restrict the
quantity or types of goods that can be
imported into a country.
• Export Controls: Governments may
also regulate exports through export
tariffs, export quotas, or export
licensing requirements. Export controls
are typically used to conserve scarce
resources, protect domestic supply, or

GOVERNMENT ROLE
IN INTERNATIONAL
TRADE
• Trade Agreements: Governments
negotiate trade agreements to
liberalize trade by reducing or
eliminating barriers to trade among
participating countries. These
agreements can take various forms,
such as bilateral agreements between
two countries, regional agreements
involving multiple countries within a
geographic region (e.g., NAFTA, EU),
or multilateral agreements involving a
large number of countries (e.g., WTO
agreements).
• Customs and Border Controls:
Governments enforce trade
regulations through customs and
border controls, which involve
inspecting goods entering or leaving a

GOVERNMENT ROLE
IN INTERNATIONAL
TRADE
• Trade Remedies: Governments use
trade remedies, such as anti-dumping
duties, countervailing duties, and
safeguard measures, to address unfair
trade practices or surges in imports
that harm domestic industries. These
measures aim to provide temporary
relief to domestic producers while
allowing time for adjustment.
• Trade Facilitation: Governments
implement trade facilitation measures
to streamline customs procedures,
reduce trade costs, and facilitate the
smooth flow of goods across borders.
These measures include simplifying
documentation requirements,
improving infrastructure and logistics,
and enhancing trade-related services.

GOVERNMENT ROLE
IN INTERNATIONAL
TRADE
▶ Here's an overview of their roles and the
mechanisms they use:
• Trade Policy Coordination:
Governments coordinate their trade
policies across various agencies and
departments to ensure consistency and
coherence in trade-related decision-
making. This coordination involves
balancing economic, social, and political
objectives while addressing the
interests of different stakeholders,
including domestic industries,
consumers, workers, and the broader
economy.
• Trade Promotion: Governments support
trade promotion activities to help
businesses access international
markets, expand export opportunities,
and compete effectively in global trade.
This includes providing export financing,
market intelligence, trade missions, and

FACILITATING
TRADE AND
RESOLVING
DISPUTES
▶ International organizations play
critical roles in facilitating trade and
resolving disputes in the global arena.
These organizations provide
frameworks, mechanisms, and
platforms for member countries to
engage in trade negotiations, address
trade-related issues, and resolve
disputes in a fair and impartial
manner.
Overall, international organizations
play instrumental roles in facilitating
trade and resolving disputes,
contributing to the stability,
predictability, and inclusiveness of the
global trading system. Their efforts
help promote economic growth,
development, and prosperity while
ensuring that trade benefits are

FACILITATING
TRADE AND
RESOLVING
DISPUTES
▶ Here are some key functions of
international organizations in facilitating
trade and dispute resolution:
• Trade Negotiations and Agreements:
International organizations, such as the
World Trade Organization (WTO) and
regional trade blocs like the European
Union (EU) or ASEAN, facilitate trade
negotiations among member countries.
They provide platforms for countries to
discuss and negotiate trade agreements
aimed at reducing barriers to trade,
harmonizing regulations, and promoting
economic integration.
• Trade Policy Development and
Coordination: International organizations
assist member countries in developing and
coordinating their trade policies. They
provide technical assistance, capacity-
building programs, and policy advice to
help countries formulate trade policies that

FACILITATING
TRADE AND
RESOLVING
DISPUTES
• Trade Facilitation: International
organizations promote trade facilitation
measures to streamline customs
procedures, reduce trade costs, and
enhance the efficiency of cross-border
trade. They develop standards, guidelines,
and best practices for trade facilitation and
provide technical assistance to help
countries implement these measures.
• Dispute Resolution Mechanisms:
International organizations establish
dispute resolution mechanisms to resolve
trade disputes among member countries.
The WTO's Dispute Settlement Mechanism
(DSM) is one of the most prominent
examples, providing a forum for countries
to settle disputes related to violations of
WTO agreements, unfair trade practices, or

FACILITATING
TRADE AND
RESOLVING
DISPUTES
• Monitoring and Surveillance:
International organizations monitor and
analyze global trade trends,
developments, and policies. They
provide data, research, and analysis to
help member countries better
understand the evolving dynamics of
international trade and make informed
policy decisions.
• Capacity Building and Technical
Assistance: International organizations
offer capacity-building programs and
technical assistance to help developing
countries strengthen their trade-related
institutions, policies, and regulatory
frameworks. This assistance aims to

FACILITATING
TRADE AND
RESOLVING
DISPUTES
• Promotion of Fair and Inclusive Trade:
International organizations promote fair
and inclusive trade by advocating for
transparency, non-discrimination, and
equitable participation in global trade. They
address issues such as trade barriers,
market access restrictions, and unfair trade
practices that hinder the participation of
developing countries and smaller
economies in global trade.
• Coordination with Other Stakeholders:
International organizations collaborate with
other stakeholders, including governments,
businesses, civil society organizations, and
academia, to promote trade and resolve
trade-related disputes. They foster
partnerships and dialogue among various
stakeholders to address shared challenges

INFLUENCE ON
INTERNATIONAL
TRADE
▶ Consumers and producers exert significant
influence on international trade dynamics
through the interaction of demand and supply
in global markets. Here's how they impact
international trade:
• Consumer Preferences and Demand:
Consumer preferences play a crucial role in
shaping patterns of international trade. When
consumers demand goods and services that
are not available domestically or are more
competitively priced from foreign producers, it
creates opportunities for international trade.
For example, preferences for certain types of
electronics, clothing, or exotic foods may lead
to increased imports from specific countries or
regions.
• Import Demand: Consumers' demand for
imported goods and services drives imports,
which represent the flow of goods and
services into a country from foreign producers.
Factors influencing import demand include
consumer tastes, income levels, price
competitiveness, and the availability of
substitutes. High demand for imported
products can lead to trade deficits if imports

INFLUENCE ON
INTERNATIONAL
TRADE
• Export Supply: Producers respond to foreign
demand by supplying goods and services for
export. Export supply is influenced by factors such
as production costs, technology, resource
endowments, and government policies. Producers
may specialize in goods or services for which they
have a comparative advantage, enabling them to
compete more effectively in international markets.
• Competitiveness and Comparative Advantage:
Producers' ability to compete in international
markets depends on their cost competitiveness,
product quality, innovation, and branding.
Countries and industries with comparative
advantages in certain products or services are
better positioned to export those goods and
services profitably. This specialization based on
comparative advantage drives efficiency and
productivity gains in global trade.
• Trade Balances: The interaction of consumer
demand and producer supply influences a
country's trade balance, which is the difference
between its exports and imports. If a country's
exports exceed its imports, it has a trade surplus; if
imports exceed exports, it has a trade deficit.
Trade balances reflect the overall competitiveness
of a country's producers and the preferences of its
consumers for domestic versus foreign goods.

INFLUENCE ON
INTERNATIONAL
TRADE
• Trade Policies and Regulations:
Government policies and regulations can
influence both consumer demand and
producer supply in international trade.
Tariffs, quotas, subsidies, and trade
agreements can affect the cost,
availability, and competitiveness of
imported and exported goods and
services. Trade policies may aim to
protect domestic industries, promote
exports, or address trade imbalances.
• Globalization and Market Integration:
Consumer preferences and producer
supply are increasingly influenced by
globalization and market integration,
which have expanded the scope and
complexity of international trade. Global
supply chains, cross-border investments,
and technological advancements have
reshaped production and consumption
patterns, leading to greater
interconnectedness in global markets.

ROLE OF LABOR
▶ The role of labor in
international trade is
multifaceted, encompassing
various aspects such as
labor mobility, outsourcing,
and its impact on production,
wages, and employment.
Here's a breakdown of these
key elements:

ROLE OF LABOR
▶ Labor Mobility: Labor mobility refers
to the movement of workers across
borders in search of employment
opportunities. International trade can
affect labor mobility in several ways:
• Trade liberalization and economic
integration can create new job
opportunities in export-oriented
industries, attracting workers to
regions or countries with comparative
advantages in those industries.
• Conversely, trade may also lead to job
displacement in sectors that face
increased competition from imports,
prompting workers to seek
employment opportunities in other
sectors or regions.
• Skilled labor may migrate to countries
with higher wages, better working
conditions, or greater demand for their
expertise, contributing to brain drain in
some countries and brain gain in

ROLE OF LABOR
▶ Outsourcing: Outsourcing involves the
contracting of business functions or
processes to external suppliers, often
located in other countries with lower
labor costs or specialized expertise. The
role of outsourcing in international trade
includes:
• Companies may outsource
manufacturing, services, or
administrative tasks to foreign suppliers
to take advantage of cost savings,
economies of scale, or access to
specific skills or resources.
• Outsourcing can lead to the offshoring
of jobs from high-wage to low-wage
countries, impacting employment
patterns and wage levels in both
sending and receiving countries.
• While outsourcing can result in
efficiency gains and cost reductions for
businesses, it can also raise concerns
about job displacement, wage
inequality, and the quality of working

ROLE OF LABOR
▶ Labor Standards and Regulations:
International trade can influence labor
standards and regulations in
participating countries:
• Trade agreements may include
provisions on labor standards, such as
minimum wages, working hours,
occupational health and safety, and
the right to organize and bargain
collectively.
• Improved labor standards can help
protect workers' rights, ensure fair
wages, and promote decent working
conditions, contributing to social
welfare and sustainable development.
• However, concerns have been raised
about the potential for trade
agreements to lead to a race to the
bottom in labor standards, as countries
may lower their standards to attract
investment or remain competitive in
global markets.

ROLE OF LABOR
▶ Global Supply Chains: Labor plays a
crucial role in global supply chains,
which involve the production of goods
or services across multiple countries.
Key aspects of labor in global supply
chains include:
• Workers in different countries may
contribute to different stages of
production, assembly, or distribution
within a supply chain, reflecting
comparative advantages in labor
costs, skills, or technology.
• Labor conditions and practices along
global supply chains can vary widely,
ranging from compliant and ethical to
exploitative and abusive. Efforts to
improve labor standards and ensure
supply chain transparency have
gained increasing attention from
companies, consumers, and
policymakers.

ROLE OF LABOR
▶ In summary, labor is a
central component of
international trade,
influencing patterns of
employment, wages, and
working conditions in both
exporting and importing
countries. Understanding the
dynamics of labor mobility,
outsourcing, and labor
standards is essential for
addressing the opportunities
and challenges associated
with globalization and trade
liberalization.

Canada is Quietly
Building The Trading
Empire Of The World

Customs Issues and Procedure Part 1.pptx

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