How to do import and export business with Canada

Canada has rich natural resources, professionals and technologies, sound education and medical system, stable and competitive financial industry, world-class communication and transportation infrastructure, proximity to the U.S. market and other advantages; Canada has also been selected as one of the best places for business and investment by the Economist Intelligence Unit (EIU), ranking first among the seven major industrialized countries (G7). In addition, Canada has a sound financial system, and its leverage risk is far lower than that of other advanced countries. Therefore, Canada has shown its amazing resilience and stability in the past few global financial storms. In recent years, it has been rated as the most sound financial system in the world for several consecutive years in the world economic forum.

Canada is based on trade, and its foreign trade accounts for more than 60% of its GDP. Canada has a high standard of living per capita, and has a wide range of requirements for commodity varieties, ranging from ordinary textiles, clothing, light industrial commodities, daily-use commodities, household appliances to large-scale mechanical and electrical products.

Canada is located in the cold zone and has a long winter, so there is a large demand for winter goods. Winter clothing, such as down jackets, ski suits and equipment related to ice and snow sports, such as ice skates and skis, have a good market in Canada. In summer, Canadians like camping, mountaineering, swimming, cycling, fishing and raising flowers. Therefore, tents, sports shoes, yachts, sailboats, hovercraft, mountain bikes, all kinds of fishing gear and gardening tools are sold in the Canadian market.

Chinese goods are generally popular in Canada. In terms of the proportion of China's exports to Canada, the main commodities we export are textiles, clothing, light industrial commodities and some mechanical and electrical products. From a long-term perspective, the commodity structure of exports to Canada should develop towards mechanical and electrical products and high value-added products, so as to further expand the Canadian market.

What are the rarities in Canada and China

In recent years, China's imports from Canada mainly include wheat, barley, animal offal, American ginseng, sulfur, asbestos, copper ore, petroleum, chemical raw materials, etc. The commodities imported by Canada from China mainly include frozen fish, frozen shrimp, scallops, walnut kernel, cashew nuts and other nuts, peanuts with shells, peanut kernel, Chinese herbal medicine, canned mushrooms, chemical raw materials, mineral products, medical supplies, plastic products, luggage, leather clothing, gloves, carpets, cloth, umbrellas, footwear, bedding, straw woven products, ceramic products, furniture, sports equipment, etc. Of course, other commodities may become popular at some time, which requires you to pay attention to the market.

What are the "rules of the game" for Canada's import and export

As a member of the world trade organization, Canada has established a relatively free and transparent trade management system in the world. The commitments made by Canada in the Uruguay round have been fully implemented. Canada's import restriction measures mainly include: textile import quota, anti-dumping and countervailing. In addition, the import inspection of animal and plant products and low acid food is stricter, and there are no more restrictions on other commodities. However, the goods must comply with the regulations of the Canadian government in terms of quality and standards.

There are two main types of import and export control in Canada: one is license control, which is issued by the import and Export License Bureau under the Ministry of foreign affairs and trade. License control has three forms: export control list, import control list and regional control list. The commodities restricted by Canada include weapons and other military products, raw materials and semi-finished products, cork and wood products; There are 61 kinds of products subject to import restrictions, mainly including clothing, footwear, textiles, cotton yarn, agricultural products, meat, weapons and other military products. According to the regulations, the exporter needs to apply for an export license from the export office of the license administration bureau. It usually takes up to 30 days from application to obtaining the license. The certificate is generally valid for one to two years. After the expiration of the one-year license, it may be extended upon the examination of the export office. The procedures for handling import licenses are similar to those for handling export licenses.

Don't ignore product standards

In Canada, product standards are not established by independent agencies. The federal government, provinces / regions and some non-governmental organizations all play a certain role in formulating and implementing product standards. For our country, it is a problem who pays for the inspection. The production enterprises must have a certain amount of export guarantee before they are willing to pay for the inspection, while the foreign trade companies must pay the inspection fee on the premise of exclusive agency and distribution. Because this is difficult to be guaranteed, most of the domestic products are exported only simple products or products without certification. For mechanical and electrical products exported to Canada, especially large-scale mechanical and electrical products, it is generally required to provide a certificate of conformity inspected according to internationally recognized methods, a warranty period of 12 months after the invoice date, an operation and operation manual in English and French, and a maintenance and spare parts manual. In addition, Canada requires that the trademarks of mechanical and electrical products must be registered. Some of them need to be registered in the province where they are sold. They can be handled directly by foreign exporters or entrusted to Canadian importers.

Quality and price are also important

In specific business, it should be noted that consumers have high requirements for product quality. On the premise of ensuring quality, price is also an important factor. In most cases, the better way is to choose a dealer or importer with both strength and ability. As mechanical and electrical products generally need to pass the relevant safety, label and other requirements in advance, they should not only comply with the strict regulations of the Canadian government, but also meet the requirements of consumers. At the same time, importers also face two risks: price fluctuation and goods rejection. Therefore, Canadian importers are conservative. Generally, they look at samples first, and then order and test sell in small quantities. Especially for large mechanical and electrical equipment and products, they are more cautious. They usually visit the supplier's production equipment first to ensure product quality. If the products on trial sale are of reliable quality, moderate price, satisfactory sales, experienced suppliers, honest and reliable, and abide by the contract, the importer will expand the order and establish a long-term and stable business relationship.

Canadian economy:

Canada is one of the richest countries in the world and the tenth largest economy in the world. Member of OECD and G8. Canada's economy is dominated by the service industry. Three quarters of the people in the country are engaged in the service industry, ranking in the forefront of advanced countries. The manufacturing industry is mainly concentrated in the eastern region. The United States is Canada's largest trading partner.

Canada ranks 7th in the economic freedom index of the American Heritage Foundation. Higher than most Western European countries, but lower than the United States. Canada's human development index is also among the highest in the world.

Canadian industry:

Canada's oil industry has always been the main driving force of economic growth, driving Canada's trade from loss to profit, and has a lot of investment. Like many advanced economies, domestic demand for refined petroleum products is stable, but crude oil producers can still expand the market in Canada through the refineries in Canada. Canada can be said to be a net exporter of crude oil, but the refineries in the eastern provinces have always relied on imported oil because of the higher cost of transporting western Canadian crude oil across the country. Although the United States increased shale oil production, Canada's exports to the United States still increased due to its proximity to the United States and its huge pipeline network. In 2014, crude oil accounted for about 18% of Canada's goods exports.

Canada's federal and provincial governments operate a variety of international insurance businesses, including export credit insurance and investment insurance. As early as 1945, the export credit insurance law was formulated and promulgated; In 1947, the export credit insurance company was established. The insurance supervision adopted a two-level supervision model, namely, the federal and provincial levels, to protect the investment capital and investment income of Canada's domestic overseas investors, make up for the loss of export earnings, capital and income caused by various commercial and political risks, and effectively promote the development of Canada's international trade and the competitive position of its insurers in the international market. The assets of the insurance industry ranked second in the Canadian financial industry. At present, there are nearly 400 non life insurance companies in Canada.

Agricultural food industry is an important part of Canadian economy, accounting for 8% of its GDP. Canada has 46million hectares of cultivated land, mainly in the west, accounting for 5% of the total land area. The products mainly include: wheat, oats, soybeans, rapeseed, barley, red meat (cattle, pigs and sheep), fruits, vegetables, wine, tobacco, beverages, etc. exports to the United States account for a large amount, accounting for about 60% of the total. Ontario and Quebec mainly produce red meat and dairy products.