Lockheed Martin Canada’s SMB Mentoring Program Export for Small and Medium Businesses

© 2016 LOCKHEED MARTIN CANADA Disclaimer This presentation is intended for informational purposes only and does not constitute an official guideline on the subject. For a complete understanding of the process and rules the official Canadian Government program/site should be consulted: Exporting Commercial Goods from Canada © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Exporting Goods Goods imported to or Exported from Canada are subject to compliance with certain conditions imposed by the federal and, sometimes, provincial government(s). Canadian Border Service Officers enforce compliance to import/export conditions. Prior to being able to answer questions related to the goods you may wish to import or export, Canadian Border Service Officers require specific information about the good, its purpose and its country of origin. © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Definitions CBSA = Canada Border Services Agency CRA = Canada Revenue Agency Customs Broker = a company or a person licensed by the CBSA who will act on your behalf in clearing goods into Canada Tariff Clarification Number = number used to determine the rate of duty that will be applied to your goods CAED = Canadian Automated Export Declaration OGD = Other Government Departments © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Steps to Exporting There are three (3) key steps to ensuring you can export goods from Canada. Each of these steps are further broken down on subsequent pages: Prepare to export Export Documentation Requirements Classify your goods Shipping, examining and reporting goods © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Prepare to Export Obtain a Business Number Before exporting goods, you will need to obtain a Business Number (BN) issued by the Canada Revenue Agency (CRA) for an export account. This import account is free of charge. Visit the CRA’s Business Registration Online (BRO) Determine if you want the services of a licensed customs broker to help export your goods Licensed by the CBSA, custom brokers’ services typically include: Obtaining, preparing and transmitting the necessary documents or data to Canada Customs and Stats Canada; Maintaining records; and Responding to any CBSA concerns Payment for these services is established between your organization and your chosen broker. Identify the goods to be exported Gather as much information as possible about the goods you intend to export. An accurate description will help you determine if your goods are regulated, controlled or prohibited by other government departments or if a permit or license is required. © 2016 LOCKHEED MARTIN CANADA

Prepare to Export Cont’d Confirm goods can be export the goods from Canada Certain goods are not allowed to be exported from Canada. Determine if the goods are subject to any permits, restrictions or regulations Verify whether the goods you want to export are controlled, regulated or prohibited by any government department or agency Please refer to the CBSA’s Other Government Department and Agencies: Reference List for Exporters. Determine if the goods are allowed entry into the receiving country World Customs Organization © 2016 LOCKHEED MARTIN CANADA

Exporting Goods From Canada – Documentation Requirements for Exporters Destination Proforma or Commercial Invoice Canadian Export Permit or OGD Canadian Export Declaration B13A (CAED) USA (Non-export Controlled, regulated and prohibited goods) Yes No (Export Controlled, regulated and prohibited goods) Yes (if applicable) Export permits are not required for many of the goods and technology listed in the Export Control List if they are destined to a consignee in the United States. International Yes (only for goods valued at $2000 or more) © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA Commercial Invoice The following information should be declared on your commercial invoice. Description of goods and quantities Declared value for each item Country of origin of each item Certification of Origin of Goods Exported to a Free Trade Partner Terms of Sale (INCOTERMS) Reason of export Export permit (if required) 10-digit Harmonized System (HS) Code for each item Consignee’s customs broker information Exporting Carrier and Bill of Lading number © 2016 LOCKHEED MARTIN CANADA

Submit an Export Declaration – (if required) If an export declaration is required, it can be achieved through 1 of 4 methods: Canadian Automated Export Declaration (CAED) (recommended) G7 Electronic Data Interchange Export Reporting Summary Reporting B13A Export Declaration Certain goods are not required to be reported on an export declaration. Consult sections 6 and 7 of Memorandum D20-1-0, Reporting of Exported Goods Regulations for exempted goods. Minimum timeframe for reporting: Air – two hours before goods are loaded; Highway – prior to export; Marine – forty-eight hours before goods are loaded; Mail – two hours before goods are brought to post office; and Rail – two hours before goods are loaded © 2016 LOCKHEED MARTIN CANADA

Final Export Steps – (if required) Provide a Certificate of Origin to receiver of goods An importer of your goods may be entitled to claim a preferential tariff treatment if they have a valid certificate of origin the certificate of origin proves that the goods are of Canadian origin and meet the requirements of a free trade agreement. For more information consult: NAFTA Certificate of Origin Memorandum D11-4-14, Certificate of Origin © 2016 LOCKHEED MARTIN CANADA

© 2016 LOCKHEED MARTIN CANADA More Helpful Links Canada Border Services Agency (CBSA) Importing Commercial Goods into Canada Exporting Commercial Goods from Canada CRA - Business Registration Online (BRO) CBSA's Licensed Customs Broker List © 2016 LOCKHEED MARTIN CANADA