Useful
Resources

Export Outaouais' mission is also to provide you with useful resources to simplify your export procedures. Take a look at them!

ASSESSING YOUR EXPORT POTENTIAL

DEFINING YOUR TARGET MARKET

KNOWING CUSTOMS REGULATIONS

BUILDING AN APPROPRIATE LOGISTICS STRATEGY FOR TRANSPORT, PACKAGING AND LABELING

FINANCING YOUR EXPORT PROJECT

Export Outaouais' mission is also to provide you with useful resources to simplify your export procedures. Take a look at them!

ASSESSING YOUR EXPORT POTENTIAL

Assessing your company’s readiness for entering your first markets, expanding into additional markets, or taking on more challenging, high-growth export markets is your first step. It allows you to build your export project, and allows you to take into consideration all the factors that such a project involves that this approach involves.

There are 5 initial aspects to take into account to assess your ability to develop new markets:

  • Defining your expectations: objectives, implementation time, required adjustment to your work cultures, strategy and team
  • Assessing your human resources: sufficient number of employees to undertake an export project, identifying the proper resources responsible for the export project, assessing your knowledge of foreign trade, cultural and linguistic differences, confirming key external partners to facilitate the development of the project
  • Reviewing your financial and legal resources: ensuring you have the internal financial resources required to carry out your export project, knowledge of support organizations, resource persons for legal and fiscal aspects, knowledge of intellectual protection
  • Confirming your production capacity: resources, equipment available to meet the demand created on a new market, solid relations with your suppliers to increase your orders if necessary
  • Defining your value proposition: what are your competitive advantages, what defines your products or services on new markets

And many more aspects – Contact us to carry out an export assessment!

DEFINING YOUR TARGET MARKET

Defining your target market is a crucial and essential point for implementing a sustainable international strategy. Choose the most promising market for your product or service. Reassess your value proposition and its perception in the face of a new market and new competitors.

Additional points to consider when defining your target market:

  • Your target of export customers: typology of end users, age, social background, etc.
  • Potential market demand: market analysis, competition analysis, existing market dynamics, distribution channel analysis
  • Regulatory and legal barriers
  • Logistics barriers

KNOWING CUSTOMS REGULATIONS

Customs regulations differ from one country to another. It is therefore essential to know the specifics of the target markets, as well as the entry conditions, in order to be able to prepare your plan and cost analysis accordingly.

The Harmonized Item Description and Coding System (HS) is the very basis of customs tariff. Developed by the World Trade Organization (WTO), the HS consists of a standardized coding structure and descriptions of related products used for international trade.

Depending on the country you wish to export your product into, the buyer may be subject to customs duties following the importation of your products. By knowing the applicable customs duties, you can calculate your export price and adapt your pricing strategy to be more competitive with the buyer and respect your margins.

For this reason, it is essential to know the specific HS code of your product.
Canadian exporting companies have a clear advantage in terms of exports. Canada is the only G7 country to have concluded free trade agreements with all the other partners in this important grouping of countries. This means that customs regulations have been loosened for products and services originating in Canada. This is a beneficial point that will facilitate the development of Canadian products around the world.

Before exporting, companies must complete an export declaration and obtain the applicable permits and licenses. Exports to the United States are exempt from these procedures. The Canada Border Services Agency is the agency responsible for carrying out these efforts.

Agri-food companies can find out about regulations and certifications for food products for export at the Canadian Food Inspection Agency (CFIA) site.

Relevant resources:The Canada Border Services Agency

BUILDING AN APPROPRIATE LOGISTICS STRATEGY FOR TRANSPORT, PACKAGING AND LABELING

An adapted logistics strategy is essential for the sustainability of your export development. Indeed, the right mode of transport will allow your products to arrive on the desired date, in good condition and at fair cost.

Thus four modes of transportation are possible:

  • Truck: means of transport widely used in North America. It is not available all over the world.
  • Train: also widely used in North America
  • Boat: this means of transport is inexpensive. It is particularly suitable for bulky, non-perishable products that allow long delivery times.
  • Plane: expensive means of transport. However, it is the fastest form of transportation with the best insurance and storage costs. It is mandatory to send goods to certain remote locations.

In general, the choice of mode of transporting will combine one or more solutions.

INCOTERMS

Incoterms, established by the International Chamber of Commerce, govern the duties and responsibilities between sellers and buyers. They are specific depending on the mode of transport chosen and / or the use of a multimodal means of transporting goods. They take a new form from 2020.

All information is available on the International Chamber of Commerce (ICC) website in the Incoterm Rules section.

To complete the choice of mode of transport and Incoterms, it is important to choose the appropriate packaging. Indeed, the latter guarantees the good condition of the goods on arrival and can also reduce the risk of theft.

LABELING

Labeling of shipping packages and merchandise will then be essential. If your consignments do not comply with the requirements of the country of dispatch, the latter will be refused. It is therefore imperative to comply with local laws and regulations. These can be provided to you by local partners so that you can prepare yourself in advance. Global Affairs Canada is an excellent partner. In addition, freight forwarders and customs brokers will be the preferred partners of businesses. We can put you in touch with excellent brokers and forwarders.

It will then be necessary to choose a relevant local distribution network adapted to your products. For this, you will have to take into consideration:

  • Your resources (financial and human)
  • The training, assembly, installation required for your products
  • The level of customized customer service required for your products

Based on these three parameters, you will determine if you prefer to enter the market via a distributor / reseller, an agent or by implementing your own entity on the new market.

Relevant resources:

FINANCING YOUR EXPORT PROJECT

Self-financing your growth outside Quebec and abroad can be risky, especially during the development of a new market or during an initial export process. We often underestimate the financial resources and time required to position ourselves in a new market.

Among other things, certain payment terms are long which can have an impact on your working capital.

Several financial solutions are available to you by:

For more information on the programs available and for assistance in submitting your applications, do not hesitate to contact us!

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