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Five Canadian Government Supports For Small Medium Sized Enterprises (SME) Exporting

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Five Canadian Government Supports for Small Medium Sized Enterprises (SME) Exporting
http://www.ilexis.fr/img/com/i-export.jpg http://www.exportaz.org/wp-content/uploads/voice-for-globaltrade.jpg

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Team 3 : Simone, Jim, Kulvinder, Ulus

Agenda 5 Organizations
The Canadian Trade Commissioner Service Ulus - Networking and Expert Advice

Export Development Canada - Simone - Financing & Insurance


Canada Border Services Agency Jim - Export Guide Canada Export Centre - Kulvinder - Generating Sales Statistics Canada Kulvinder - Canadian Automated Export Declaration (CAED)
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The Canadian Trade Commissioner Service (TCS)

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TCS Overview
Presence is in more than 150 countries Privileged access to most foreign governments, business leaders and decision-makers Part of Canadas embassies and consulates/Government of Canada Partners include: Canada's International Trade Portfolio Network (TCS,EDC,CCC) Various levels of governments Business and industry associations Educational and research institutions Chambers of commerce Economic development and other agencies

IMPORTANCE: Assess export potential, Learn about export markets and opportunities / Prepare for international markets/Trade mission participation/Expert Advice/Networking

TCS Help: Assess International Strategy


Find a Trade Commissioner in Canada or abroad by sector
Strategic advice on doing business in the market Intelligence on opportunities/barriers Emerging trends/regulations/policy issues

Learn about export markets and opportunities Notification of upcoming events ( e.g. trade fairs/missions)
For Participation- contact 8 weeks prior, must sign Business Mission Agreement

TCS Services
DIRECT SERVICES OFFERED EXPERT ADVICE ON: Exporting information Establishing company abroad Overcoming market access issues Pursuing a joint-venture or strategic alliance Participating in global value chain Seeking technology and R&D partnerships

INDIRECT/REFERRAL SERVICES:

Detailed market research Accessing specialized databases Extensive program of appointments Logistical support Business support services Participation in business events Temporary office or display space

Networking- Foreign Contact Connection


Government officials and policy networks Businesses and potential investors Key participants for business events in Canada Counterpart associations and strategic partners Research and educational institutions Financial institutions and venture capital firms Science and technology stakeholders Professional and business associations Lawyers, accountants, consultants Communications professionals and media

Networking- Trade Missions


Trade Missions: Purpose: Marketing and Networking: To participate in trade missions to get market assistance from trade commissioners at Canada's foreign posts; make great contacts
Get Invited to Participate in Business Trade Mission Steps: Know government officials and get on mailing lists Plug into different networks - World Trade Centre, Regional Offices of the Trade Commissioner, and Board of Trade Join your local Chamber of Commerce. Get involved in business associations

Trade Mission Pre-Trade Mission Preparation


Match your firms capabilities with opportunities in the host country Do your homework
Ensure the most senior people available Analyze your company's readiness to export; Do some research

Review all available briefing, training materials and market research well in advance. Know potential customers, competition Submit profile detailing company's strengths and capabilities and your expectations for the mission; Describe best potential customers and contacts; Submit requests for meetings early Using the Internet or any on-line communication facility. Review your goals and expectations with the mission organizers to ensure that your goals are reasonable, attainable and affordable. Adjust style of language and benefits. Have marketing collateral translated. Assess promotional material professionalism. Ensure that all of your business materials include details vital to international communications

Matchmaking: Ask mission organizers to arrange the right meetings in advance. Set appropriate expectations and goals Ensure your company's marketing/promotional materials are appropriate for the host country Plan in advance for postmission follow-up

upon returning home, send letter to the people you met with during the mission

Export Development Canada (EDC)


http://www.edc.ca/EN/About-Exporting/Pages/default.aspx

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EDC Overview
Canadas export credit agency to support and develop Canadas export trade by helping Canadian companies respond to international business opportunities. For Canadian exporters and investors and their international buyers Financial institutions partnerships ( e.g. BDC) and through collaboration with the government of Canada Up to 200 markets worldwide, with 17 offices across Canada, and permanent representations in 12 foreign markets IMPORTANCE: Provides financing and risk management (financing, insurance, bonding services/products)/ Support Canadian investment/Foreign market expertise

EDC Services
TYPE SERVICES/PRODUCTS
Accounts Receivable Insurance Single Buyer Insurance Contract Frustration Insurance Performance Security Insurance Political Risk Insurance Domestic Credit Insurance Export Guarantee Program Foreign Buyer Financing Foreign Investment Financing Supplier Financing Project Finance Domestic Financing Account Performance Security Guarantee Foreign Exchange Facility Guarantee Surety Bond Insurance Domestic Surety Bonding and Bank Guarantees

Insurance: 7 Insurance services/products

Financing: 6 Financing services/products

Bonding and Guarantees: 4 Bond/Guarantee services/products

BENEFITS

Protect Against Risk, Free up Working Capital, Grow Your Business, Get Financing, Finance Your Supply Chain

INSURANCE
TYPE
Accounts Receivable Insurance
- Credit insurance for when your buyer does not pay you

QUALIFICATIONS
Any Canadian business that exports goods or services

Single Buyer Insurance


- insures unlimited export sales to the same foreign customer over 180 days

Canadian company Goods must be shipped from Canada/service must be based in Canada. the value of your exports and any other significant benefits to Canada; creditworthiness of your foreign customer; contractual terms; customers country conditions/economic outlook; and export capabilities

Contract Frustration Insurance


- eligible losses resulting from political and commercial risks

Performance Security Insurance


- losses if your foreign customer demands payment on a bank-issued guarantee without a valid reason

acceptable contract terms; acceptable guarantee instruments; your foreign customers profile and both country current/future economic conditions; acceptable Canadian exports of goods and services; and benefits to Canada derived from your export activity must generate economic benefits to Canada (e.g. job creation, contribution to GDP). Companies operating abroad should be aware that EDC is subject to a number of provisions and guidelines governing international trade Exporting and non-exporting companies in all sectors are eligible for supplementary domestic credit insurance. Transactions must be creditworthy and supported by a viable business model. Domestic credit insurance is available from private insurance providers - not directly from us

Political Risk Insurance


- protection against political upheavals

Supplementary Domestic Credit Insurance


- credit insurance solutions to support your domestic business

INSURANCE COMPARISON

FINANCING
TYPE
Export Guarantee Program guarantee to your financial institution that your loans and other financing arrangements will be paid back

QUALIFICATIONS
Any Canadian company with export-related activities or foreign investments. Financial institution must be willing to establish a credit arrangement with your company and participate in the financing. Revised so available for Canadian companies involved in export trade who may not meet traditional exporter criteria of $5 million in export sales or 15 per cent of total sales derived from exports.
Need financial information on the foreign buyer and other documentation strong, mid-sized Canadian company Support contingent upon an acceptable review of risks, and is also subject to acceptable export mandate, credit assessment, and risk mitigation transactional costs > $1 million Contact us before the commercial contract with a foreign buyer is signed to determine whether a note purchase is feasible because certain requirements must be met to qualify for this arrangement Any project sponsor with a project that demonstrates economic benefits to Canada Numerous documentation requirements financial institution must be willing to establish a credit arrangement with you and participate in the financing. Directed at trade-related sectors. Not for equity for domestic-oriented companies. Transactions in specialized sectors of retail, wholesale, tourism, entertainment, real estate and certain Infrastructure projects such as hospitals and schools are not eligible for support.

Foreign Buyer Financing financing to foreign buyers for purchases from Canada Foreign Investment Financing

Supplier Financing buying promissory notes you have from foreign buyer Project Finance

Domestic Financing

BONDING/ GUARANTEES
TYPE
Account Performance Security Guarantee

QUALIFICATIONS
managerial, technical and financial capabilities of your company; contractual terms; review of the guarantee; the conditions and economic outlook in your customers country, and the customers profile; Canadian exports of goods and services, or other significant benefits to Canada
examine your company's managerial, technical and financial capabilities managerial, technical and financial capabilities; contractual terms; bonding instruments; conditions and economic outlook in the customers country, and the customers profile; Canadian exports of goods and services, or other significant benefits to Canada Canadian companies involved in trade-related sectors of the economy. only facilitate new and incremental commitments; not existing surety bonds or bank guarantees. Must be related to contract performance Up to a maximum of 50 per cent risk sharing to our surety partners. must be an existing client of the surety or the financial institution that is seeking additional capacity from EDC.

Foreign Exchange Facility Guarantee Surety Bond Insurance protects your surety company from losses if your customer demands payment against that bond Domestic Surety Bonding and Bank Guarantees provides re-insurance to surety companies for bonds they provide to cover your domestic business. Also provide bank guarantees for your domestic business

http://blog.creativedepartment.com/2012/06/15/all-aboardthe-trade-train/

http://whartonmagazine.com/blogs/exports-2-0/

Canada Border Services Agency (CBSA)

http://www.thestar.com/news/canada/2012/11/01/border_servi ce_agency_boss_accused_of_breaking_expense_rules.html

CBSA Overview
Provides integrated border services that support national security and public safety Ensures Canadas security and prosperity by managing the access of people and goods to and from Canada IMPORTANCE: Small and Medium Enterprise Centre Created guide to help SME export goods from Canada

http://www.sustained.ie/tag/small-and-medium-enterprises/

CBSA Services
The Exporting Process
Classifying Goods Completing the Process Adjustments Records Administrative Monetary Penalty System (AMPS) Trade Incentives Programs
TRADE INCENTIVE PROGRAMS: Duty Relief Program Drawback Program Customs Bonded Warehouse Program
http://www.novinite.com/view_news.php?id=119231

CBSA Parameters For Commercial Goods


Guidelines: Before exporting goods from Canada
Obtain a business number (Canada Revenue Agency (CRA)) Open import-export account Identify the goods- provide accurate description of the exporting goods Determine the country of origin of the goods Make sure the goods can be exported Know restrictions or other requirements of the goods Ensure goods are allowed entry into the receiving country

CSBA Requirements

Canada Export Centre (CEC)

CEC Overview
Makes connections between buyer and seller Provides customized services and various business tools Results a multi sales throughout the year with excellent business development Headquarter in Canada with 10 overseas offices Partnership with Vancouver Board of Trade
IMPORTANCE: Endorsement of the companies Helps to deal with the difficulties Assistance in finding sources for the ventures Engaging best suited prospects for the ventures Single point of access to trade and investment

CEC Services
SERVICES Buyer Services convenient format to source product or services best destination for trade and investment opportunity assistance for business venture from start to finish communication services high level officials and industry help

Corporate Services

practical and strategic advice providing and arranging financing: public and private structuring and implementing financing transactions assisting business plans, documentations, presentations and reports
Protect intellectual property Lower manufacturing costs Generate direct sale Develop new business channel gain market and competitive intelligence before market entry

Seller Services

Statistics Canada (StatsCan)

Statistics Canada Overview


Provides International trade statistics Canadian International Merchandise Trade Database Find information - trading partners, by specific variables, by commodity, or Harmonized System code. Trade data -find trade data using different codes Harmonized System (HS) North American Industry Classification System (NAICS) Standard Industrial Classification (SIC) Standard Classification of Goods (SCG) Other standard classifications CANSIM - High-level summarized statistics all types of trade

IMPORTANCE :Reporting tool for exporters Canadian Automated Export Declaration (CAED) program Canadian Export Classification

Canadian Automated Export Declaration (CAED) Overview Statistics Canada and Canada Border Services Agency (CBSA) launched Canadian Automated Export Declaration (CAED) program The CAED software features Harmonized system commodity classification search, built-in encryption software, on-line help and Internet transmission capabilities
Gives registered exporters and agents opportunity to report goods electronically to the Federal Government of Canada. Fast inexpensive and easy way of reporting your exported goods -Eliminates manual reporting

CAED Parameters
1. Valid Exporting Business Number

5. Use Software Program

2. Register with CAED helpdesk

Qualifications

4. Verification from CAED

3. Software Acquisition Download

CONCLUSION AND QUESTIONS Reviewed 5 Canadian government organizations to help SMEs with an exporting venture along with benefits and parameters. EDC Insurance and Financing TCS Networking and Expertise CBSA Export Guide CEC Generating Sales StatCan Automated Export Declaration

Qualifications

References
Slide Background: Canadian Flag http://www.24point0.com/wpcontent/uploads/2010/05/small_Canada-EditablePPT-Map-CM-0049300x225.jpg Pictures Title Page: http://www.exportaz.org/wp-content/uploads/voice-for-global-trade.jpg http://www.ilexis.fr/img/com/i-export.jpg http://canadaelsalvador.org/wpcontent/uploads/2009/04/import_export_agent1.jpg http://logistics.avnet.com/webReporting/Assets/exportImport.jpg

EDC:
Pictures:
http://www.edc.ca/EN/About-Exporting/Pages/default.aspx http://loanmandi.com/images/Export%20Credit.jpg http://www.sba.gov/sites/default/files/images/ExportLoans.JPG

Content:
http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/default.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Pages/default.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/default.aspx

Services:
http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/default.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/accounts-receivable-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/single-buyer-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/contract-frustration-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/performance-security-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/political-risk-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/domestic-credit-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Insurance/Pages/comparison-matrix.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Pages/export-guarantee-program.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Foreign-Buyer-Financing/Pages/default.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Pages/foreign-investment.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Pages/supplier-financing.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Project-Finance/Pages/default.aspx http://www.edc.ca/EN/Our-Solutions/Financing/Pages/domestic-financing.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/account-performance-security-guarantee.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/foreign-exchange-facility-guarantee.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/surety-bond-insurance.aspx http://www.edc.ca/EN/Our-Solutions/Bonding-and-Guarantees/Pages/domestic-surety-bonding-bank-guarantees.aspx

TCS
PICTURES:

http://www.centralmdsbdc.org/upload/iblock/04f/Export%20Conference.jpg http://cdnseed.org/wp-content/uploads/2011/08/globeflag_new.jpg http://www.international.gc.ca/commerce/assets/images/visit/101215-01.jpg http://cf067b.medialib.glogster.com/media/b3/b39c01a8f6a2e63838a6ebd821e5679adaa40e bc6106239b9791d5ceaacc7336/canada-government-7156.jpg http://www.purtell-law.com/dreamstimescale_cartoon9921102_std.jpg http://www.ketchum.com/sites/default/files/styles/media_640w/public/140054736.jpg http://www.syoncloud.com/sites/default/file2/Bank.jpg http://dktechnologygroup.com/images/Financial-Technology.jpg

ABOUT
http://www.tradecommissioner.gc.ca/eng/how-tcs-can-help.jsp http://www.tradecommissioner.gc.ca/eng/services-for-partners.jsp http://www.tradecommissioner.gc.ca/eng/find-trade-contacts.jsp http://www.tradecommissioner.gc.ca/eng/trade-missions/general-info.jsp http://www.tradecommissioner.gc.ca/eng/businesswomen/trade-missions.jsp

SERVICES

CBSA
PICTURES: http://www.thestar.com/news/canada/2012/11/01/border_servic e_agency_boss_accused_of_breaking_expense_rules.html http://blog.creativedepartment.com/2012/06/15/all-aboard-thetrade-train/ http://whartonmagazine.com/blogs/exports-2-0/ http://www.sustained.ie/tag/small-and-medium-enterprises/ http://www.novinite.com/view_news.php?id=119231 http://www.asbdc-us.org/images/BraddockExportGuideCover_large.jpg CONTENT: http://www.cbsa-asfc.gc.ca/agency-agence/who-qui-eng.html http://www.cbsa-asfc.gc.ca/sme-pme/e-guide-eng.html

CEC
Picture Links
http://static2.dmcdn.net/static/user/973/063/37360379:avatar_large.jpg?20110211150032 http://wpmedia.business.financialpost.com/2013/07/canada-flag.jpg?w=620

content links
http://www.canadaexportcentre.com http://www.canadaexportcentre.com/index.php/import-export-trade-services/international-buyer-trade-services http://www.canadaexportcentre.com/index.php/import-export-trade-services/ http://www.canadaexportcentre.com/index.php/import-export-trade-services/seller-export-sales-servicesibn-program http://www.canadaexportcentre.com

StatsCan
Picture links
http://www.povnet.org/sites/povnet.org/files/imagecache/con http://canauthorsniagara.org/wpcontent/uploads/2013/04/CanadaStats.jpgtextual/Screen%20sho t%202010-08-19%20at%2012.00.16%20PM.png

Content links
http://www.statcan.gc.ca/exp/index-eng.htm http://www.statcan.gc.ca/trade-commerce/data-donnee-eng.htm http://www.statcan.gc.ca/exp/index-eng.htm http://www.statcan.gc.ca/exp/overview-apercu-eng.htm

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