Current Export-Import Trends Encourage US Exports to Canada

 

On July 11, the US Bureau of Economic Analysis released its most recent report on U.S. International Trade in Goods and Services, which indicated an increase in the goods and services export-import deficit. The global deficit rose by $1.0 billion from May 2011 until May 2012; however, the deficit in trading with Canada decreased, from $3.3 billion in April, to $2.2 billion in May 2012. These figures are at once promising, challenging and encouraging for the US companies that seek to export to the neighboring country. The challenge rests within reconciling the volatile backdrop of current trends, still profusely influenced by the recession, with clear indications that the Canadian market is yet insufficiently explored by U.S.-based exporters.

 

According to the Non-resident Importer Program, available from cold storage Canada based provider CDS ltd., exporters from the U.S. can essentially include all their expenses in the selling price to the Canadian customer. And while such a deal might seem like it falls into the ‘too good to be true’ category, there is a benefit for the Canadian party, too, as they stand to gain an increased degree of transparency from the process. Basically, such programs allow Canadian companies to import goods from the United States following much of the same procedure that a purchase from a local company would entail.

 

Most companies decry a lack of readily available information on the process of exporting to Canada. In actuality, however, the process isn’t as complicated as it may seem at first glance. Moreover, a simple online search led us to freight forwarding Canada located suppliers which assist interested companies throughout the process. The first stages of the journey require taking out and filling in the appropriate customs documentation and checking for customs compliance—all with the aid of your broker or freight forwarding service provider. As the goods reach their Canadian destination, they need to be reported to the Customs authority, released, then further examined, in order for the U.S. sender to finally account for all required and applicable duties and taxes. From this point onward, customs clearance procedures are initiated and the goods eventually released.

 

Finally, U.S. exporters should also know that Canada mostly imports vehicle parts and accessories, passenger cars and vehicles such as trucks, buses and other special purpose cars from their southern neighbors. These categories held the highest values in 2006 – a cumulated $48.5 billion. These pre-financial crisis numbers indicate that there is great promise and potential in exporting to Canada, without a doubt. As the global economic waters are starting to gradually settle in the long-awaited wake of the recession, American exporters ought to begin looking north once more, in their quest for reviving a traditionally successful international trade relation.

1 Comment

  1. Hello my friend! I want to say that this post is awesome, nice written and include almost all significant infos. I’d like to see more posts like this.

    Comment by Amedar Consulting — September 8, 2012 @ 8:31 pm

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