Class Notes (839,194)
Canada (511,223)
LAW 724 (58)

CHAPTER 6.docx

7 Pages

Law and Business
Course Code
LAW 724
Alyssa Brierley

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CHAPTER 6 Canada’s import and export are influenced by: • Protection of health and safety • Maintenance of the economic well being • Compliance with rules under WTO, NAFTA, etc. • Compliance with provisions of treaties-environmental protection. WTO provisions for dumping and subsidies-own legislation called the Special Import Measures Act. Canada: • Open market for import and export • Control import and export of endangered species, protected cultural artifacts, uranium and nuclear related material, military goods • Some regulations also generated by NAFTA. Barriers on imports by some countries: • Absolute prohibition on import of certain goods • Embargo- prohibition against the import of good originating on a specified country. • Restrictive licensing regime for certain imports on goods or services • System of quotas or quantitative limits on specified imports • Imposition of extra duties on certain goods. The Customs Act: • Canada’s primary legislation relating to imports and exports • Authorises the Canadian government to control the import and export of goods and to levy duties • In conjunction with two other acts- the Customs Tariff and the Special Import Measures Act. • Import and export reporting, calculation of duty, abatements and refunds ad enforcement of legislation. Canada Border Services Agency • Providing integrated border services that support national security priorities and facilitate the free flow of persons and goods-plants and animals • Ensuring that people coming to Canada are admissible under Canadian laws and regulations. • All commercial shipments comply with Canadian law and regulations and that no illegal goods enter or leave the country. • Trade statistics are accurate • Duties and taxes are paid. • Food safety and plant, animal health • Persons posing threat to Canada are detained, persons admissible removed • Measures for prevention of money laundering are implemented. • Many programs implemented with US Customs: Canadian Partners in Protection (PIP), American customs trade partnership against terrorism (C-TPAT) and bilateral Free and Secure Trade program (FAST). PIP and C-TPAT-Industry government partnership programs to improve the security of goods and services supply chain. Private sector in agreement with government to: • Conduct a self-assessment of supply-chain security according to guidelines • Share this supply-chain security information with the government agency • Develop and implement security enhancement programs • Participate in security awareness sessions. • Participation will result in decrease border restrictions. FAST- Paperless cargo-release system using electronic data transmission, barcode technology and transponder technology. Bilateral agreement. Enjoy benefits as: • Reduction in information requirements for customs clearance • Elimination of data transmission for each transaction • Dedicated lanes for FAST clearance • Reduction of rate of border examinations • Ability to verify trade compliance away from the border. CANADIAN SERVICES FOR EXPORTER- Canadian Trade Commissioner Service International segment of the Team Canada Inc. business service network consisting of more than 20 federal departments and agencies working with provincial and municipal governments, industry associations, education institutions etc. Trade Commissioner Service officers in embassies provide services: • Assessment of potential prospects in the target market • Searches for qualified contacts in the target market • Information on foreign organisations, customers and competitors • Foreign visit information on hotels, business support services, translators and local transportation • Face-to-face briefings with Canadian exporters in the target destination to discuss exporter’s needs • Troubleshooting assistance. Export Development Canada- Canadian Crown Corporation under the export development act to provide trade and finance services to support Canadian exporters and investors. • Accounts receivable insurance- available to Canadian companies of any size, covers up to 90 percent of losses, risks including buyer bankruptcy; buyer rejection of goods shipped; cancellation of contract by buyer; war in buyer’s country; governments cancellation of import or export permits; foreign exchange control problems preventing buyer payment. • Export protection insurance- single transaction based accounts receivable coverage for losses up to $250,000. Only certain applicants, destination countries are covered. • Performance security insurance- covers up to 95 percent of an exporter’s losses if foreign buyer makes a wrongful call on an irrevocable letter of credit. • Performance security guarantees- issued directly to an exporter’s bank covering 100 percent of losses if foreign buyer calls or makes demand against the letter of credit. • Specific transactions insurance- covers up to 90 percent of an exporter’s losses in relation to specific export contract for service, goods, “one-off” transactions representing unusual risk and help exporter obtain participation of banks • Political risk insurance-protects and exporter’s overseas assets such as equipment, warehouse etc. from political action of a sovereign state, e.g.: breach of contract, repossession of physics assets. CANADIAN REGULATION OF EXPORTS-Export Reporting and Documentation Goods are classified for the purpose of reporting into: • Regular goods • Controlled, prohibited and regulated goods • In-transit goods. • Does not require exporters to report of regular goods to the US or value less than $2000. Export Controls Principal regulation is called the Export and Import Permits Act (EIPA), administered by Export and Import Controls Bureau (EICB). Violations are punishable
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