Ontario

International Transport and logistics

Chapter 13: Documentation export

EXPORT SEQUENCE

START Purchase order (PO)

Planning

Purchasing supplies and/or raw material

Inventory

Export documentation

Shipping order

Transport / distribution

DOCUMENTATION EXPORT FROM CANADA

A. Minimum documentation:

• PRO FORMA invoice • PACKING SLIP• Bill of Lading (BOL)

B. If not exporting to the USA:• B-13A

C. If Free Trade Agreement in place between Canada and the destination country or to prove origin of the goods:• Certificate of Origin (use the right one)

D. Mandatory documentation for controlled goods:• Copies of forms or particular authorization (Ex: arms, defense, specific electronics, etc.)

DOCUMENTATION EXPORT HORS CANADA

E. If transportation of Dangerous Goods:• Adequate documentation, labelling and packaging.

F. If Cargo Insurance contracted on the shipment:• Copy of the policy indicating type of coverage

G. Documents requested by OGA’s:

• Additional docs may be required: Ex.FDA, FCC, USDA, etc.

H. Documents that could be requested by destination country:

• Other permits, visas, consulate invoices, compliance declaration (wood), etc. can be requested. Go see MIGRA’S, Canadian export guide at

http://www.migraexport.ca/export_guide.php

BEFORE EXPORTING / KNOW BEFORE YOU GO !

C. Before exporting, in the USA and internationally, the exporter MUST know and be aware of the following elements:

The Americans are using the expression ‘KNOW BEFORE YOU GO’.

But the final point is that ‘No one can plead ignorance in front of the law’.

EXPORT DOCUMENTATION

It is necessary that each shipment be accompanied by transport documentation.

Learn wich documents are necessary.

Make sure your documents are well completed and that information is accurate and true.

At this point, a forwarder can help you.

Basically, documents are travelling with freight, except in ocean where the originals are sent to the buyer.

Now, with advance notification, paperless.

Example – Pro Forma Invoice

Example – Pro Forma Invoice

Informations on Pro forma Invoice Manufacturer Seller Consignee / importer Currency of sale Invoice date BOL number Port of departure Port of destination Carrier Export extra documents Customer order no

Date of export Number of packages Total gross weight Description HS code (6 to 10 digits) Quantity Unit price Total in (currency) Freight costs Name and signature Total invoice value

Example – Packing list / slip

Example - Bill of lading

BOL

The BOL (Bill of Lading) A document that establishes the terms and conditions of a contract between a shipper and a transportation company: It serves as a contract of carriage and a receipt for goods.

The BOL is provided by the shipping company to the shipper and should be given to the driver upon freight pick up.

W.O.: Sometimes, the shipper prints his own ‘BOL’, that is in fact a cargo manifest but always the carriers BOL that is the real transport contract.

BOL: The BOL states what is transported by the carrier. Ex. Number of items, weight, description, address of origin, address of destination, etc.

B. Example - B-13 A

C. Example - Certificate of origin (if applicable)

EXPORT DOCUMENTATION (OUT OF CANADA

C. Free Trade Agreements of Canada (nov 2010):Chile (1997)Colombia (2008)Costa Rica (2002)USA and Mexico, NAFTA (1994)Iceland, Liechtenstein, Norway and Switzerland AELE (2009)Israël (1997)Jordania (2009)Panama (2010)Peru (2009)

Download these agreements and forms at:http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng

D. CONTROLLED GOODS PRPGRAM (CGP)

CONTROLLED GOODS PROGRAM (CGP)

The Controlled Goods Program (CGP): Federal Government Program administered by the Department of Public Works and Government Services Canada.• The Controlled Goods Directorate (CGD) administers the

CPG, a domestic industrial security program that helps strengthen Canada's defense trade controls and prevents the proliferation of tactical and strategic assets including weapons, satellite global positioning systems and communications equipment, military equipment and related intellectual property.

CONTROLLED GOODS PROGRAM (CGP)

• Done by regulating and controlling the examination, possession, and transfer of controlled goods and technology in Canada.

• Anyone who conducts business in Canada and examines, possesses and/or transfers controlled goods and/or technology in Canada must comply with the Defence Production Act and the Controlled Goods Regulations.

E. Transportation of Dangerous Goods (TDG)

TRANSPORTATION OF DANGEROUS GOODS (TDG)

The Transport Dangerous Goods Directorate is the focal point for the national program to promote public safety during the transportation of dangerous goods.The TDG Directorate serves as the major source of regulatory development, information and guidance on dangerous goods transport for the public, industry and government employees. 

Documentation (TGD)

E. Cargo Insurance

F. Other gouvernmental agencies (OGA’s)

G.MIGRA’S: Canadian Export Guide

G. MIGRA’S: Canadian Export Guide

H. Wood declaration ISPM 15

PARTICULARS: US MARKET

CBP Web site

CBP Website: Docs and Forms

SHIPPERS EXPORT DECLARATION (SED)

EXPORT REQUIREMENTS – OUT OF USA

US CUSTOMS

FOREIGN CUSTOMS

EXPORT FROM CANADA / IMPORT IN THE USA

A Canadian company can be at the same time the exporter from Canada, but also the importer in the USA: Notion of Importer of

record (IOR).

ONLY EXPORTER FROM CANADA : The US customer will take care of all import formalities. He becomes the legal importer.

EXPORTER FROM CANADA AND LEGAL IMPORTER IN THE USA: The Canadian manufacturer/supplier takes care of import formalities. He becomes the legal importer.

IMPORTANT: The first time the Canadian Co. took care of the import formalities, an IOR number was created (11 digits), identifying this Co. as a non-resident importer.

OTHER REQUIREMENTS:

• If the Canadian Co. as over 7 or 8 US imports / year, worthwhile to acquire a ‘US Continuous Bond’, to cover legally all shipment for a calendar year.

• Can be for one site or for a multi-sites operation.

• General: Protection up to 50000$USD

• OBJECTIVE: Protect the US government against non payment of fees from the Non-Resident Importer Co., ex. Customs duties, MPF 0,21%, etc.

EXPORT FROM CANADA / IMPORT IN THE USA

IMPORTING IN THE USA

FEES:• Brokerage fees, varies from 15$ to over 150$ per

transaction (to negociate). Can be a flat fee or based on value. Watch for additionnal line fees for example.

• Customs duties (if applicable)• Taxes (if applicable)• ‘Single entry bond’ fee, if the importer has no

Continuous Bond (can cost 50$ to 100$/transaction)

IMPORTING IN THE USA

CLOSING THE TRANSACTION:• US Customs (CBP) have up to 10 day after the

clearance of the cargo at the border to close/liquidate the transaction in Washington, DC and print the proof of importation called an ‘Entry Summary’ form 7501.

• This document HAS TO be attached to the transaction and keep on file for 5 years + the one in progress. All missing documents at an audit: 10000$ fine per missing document…

Exemple ENTRY SUMMARY 7501

BEING THE LEGAL IMPORTER IN A FOREING COUNTRY

NOT RECOMMENDED:Stay away as much as possible from becoming the legal importer in another country then the USA.

1.You won’t be able to claim the fees to any authority;

2. You become the legal importer of goods in a country where you do not know the laws and biz practices;

BEING THE LEGAL IMPORTER IN A FOREING COUNTRY

NOT RECOMMENDED:Stay away as much as possible from becoming the legal importer in another country then the USA.3. In Europe, the VTA is around 20%, amount that you will not be able to claim since you are not an European Co. The importer can get these fees back, just like you do with the GST when you are importing in Canada.

4. In some cases, you can have other hidden fees like ‘detention’, storage, where you will have to pays individuals to have your goods moving…

TIP: Let the importer take care of it.

Tarif des douanes - USA

TARIF – Harmonized system (HS codes)

• All goods are placed in a matrix called Tariff, that is proposed par the World Customs Organization (WCO).

• Each object has it’s own HS number of 10 digits. The first 6 digits are imposed by the WCO. The last four (4) are for the use of the importing country.

Tarif des Douanes - USA

Ex. US Tarif – Chap 39 - Plastics

Tarif des Douanes – TARIC - Europe

Tarif des Douanes – TARIC - Europe

Get a sample of all the forms at:

Get a sample of all the forms at:

THE CUSTOMS BROKER• Some larger companies have their own internal customs

department that handles all customs formalities. • In most cases, Canadian importers or exporters are

using a customs broker to represent them at the border.

CANADIAN SOCIETY OF CUSTOMS BROKER

THE CUSTOMS BROKER

REPRESENTING YOUR COMPANY AT THE BORDER:

• Must have one licensee of the CBSB.

• Prepare and present documentation to CBSA and other governmental agencies (if required) for an import.

• Make payments on behalf of importer (GST, duties, taxes, etc.)

• You can have more than one customs broker (include UPS, FEDEX, etc.)

POWER OF ATTORNEY

This is the document that the company fill and sign mandating the customs brokers to act on their behalf at

customs.

EXPORT SEQUENCE

We strongly suggest to separate the functions of export and shipping.

EXPORT TEAM:

A.ORDER: Reception of a numbered export request

B.VALIDATION if product in stock or to manufacture / assemble / order

C.VALIDATION of info regarding the client, payment terms, Incoterms®2010, etc.

D.OPENING OF A TRANSACTION FILE: All docs pertaining to that shipment at one place (paper or electronic).

E.CONTACT CARRIERS / FORWARDERS for quotations

EXPORT SEQUENCE

EXPORT TEAM:

F. Preparation of EXPORT DOCUMENTATION:• Packing list• Pro forma invoice (with adequate HS codes)• Bill of Lading (BOL) of the carrier

G. Preparation of additional documentation (if applicable):

• Certificate of Origin• B-13A• OGA’S docs• Permits, visas, authorizations, etc (if applicable)

H. Sending shipping request to the shipping department

• Once completed, documentation to be reviewed and signed by a second person from the department, ideally, the supervisor.

EXPORT SEQUENCE

SHIPPING TEAM:

1. Receiving the shipping request

2. Gets the cargo from warehouse or production

3. Production of a packing slip

4. Visual inspection of the cargo with packing slip

5. Contact selected carrier**

6. Arrival and indentification of the carrier

7. 7 points inspection of the inside of the trailer/container

8. Loading following the Incoterm

9. Pictures / video if requested

EXPORT SEQUENCE

Somes elements to consider in the organization of the shipping department:

• CARGO: Placed in identified and secured location with access limited to designated staff.

• SHIPPING OFFICE: Close to cargo, access controlled

• DRIVERS in confined area or accompanied at all times

• CAMERAS directed at the drivers entrance and in front of the dock doors. Image recording in real time. Keep for a minimum of 30 days.

EXPORT SEQUENCE

Post shipping follow-up:

• FOLLOW-UP: The shipping team tracks each shipment and obtains a proof of delivery from the carrier.

• PROOF: The confirmation is printed/scanned and forward to the export team.

• INVOICES: The invoices from the carrier/forwarder and the customs broker (if applicable) are received at the export department for matching and verification.

• If non-compliant, supplier contacted.

• PAYMENT: When compliant, invoices sent to payables for payment.